Best States for Investing in Luxury Real Estate
The luxury real estate market seems to be regaining strength as mortgage rates continue to remain affordable and consumer confidence is on the rise. For those who may be interested in purchasing a luxury home for investment purposes, it’s important to consider the regional and localized markets. Are home values in the area rising, falling or staying flat? Do luxury homes move quickly on the market, or do they have the tendency to sit idle for several months? In this post we’ll take a look at a few states with robust luxury markets – where high-dollar homes are likely to appreciate in value quickly and spend minimal days on the market.
Keep in mind that the information below is for educational purposes only, to give you a rough idea of the markets. Be sure to consult an experienced luxury real estate broker who is familiar with the area in which you are buying.
States Where Luxury Real Estate is Booming
- Arizona (Phoenix, Scottsdale)
When the housing bubble burst,
- California (Bel Air, Los Angeles, Santa Barbara, San Francisco)
What list of luxury real estate markets would be complete without a few
As for San Francisco, the Wall Street Journal recently reported that luxury home values increased in the Golden Gate City during the third quarter compared to a year ago. The WSJ reports that San Francisco Bay Area values climbed 10.4 percent from the third quarter 2012 and 1.9 percent from the second quarter 2013. Furthermore, the WSJ reports that the average luxury home price in San Fran is a whopping $3 million.
- New York (Manhattan, East Hampton)
The state of
According to Hilton & Hyland, a prestigious luxury real estate brokerage, Manhattan caters to the wealthy businessmen and women who enjoy the urban atmosphere and close proximity to fine dining, cultural arts, and other exquisite amenities.
A May 2013 article in the New York Times revealed that the growing demand for luxury homes in what is already a pretty congested space has led to the rise (literally) of residential condo towers. When construction was underway for 432 Park, an ultra-luxury condo building at
The downside to this market however, is that the ultraluxury boom appears to be squeezing out every other buyer demographic.
“There are only two markets, ultraluxury and subsidized housing,” said Rafael Viñoly, the architect who designed 432 Park.
This polarization further underscores the growing gap between the “haves” and “have-nots.” As a result, land prices are driven way up, preventing developers from having any interest in building affordable, mid-range, or starter homes. Still, if that’s the market you’re looking for, Manhattan is tough to beat.
Another booming luxury market in New York State is East Hampton, where wealthy New Yorkers and Manhattanites often go to enjoy their vacation homes. According to Hilton & Hyland,
“What stands out among the numerous multi-million dollar properties here are the early 20th Century mansions that are every bit as beautiful (sometimes more so) as when they were built, offer expansive acreage, and even beach access.”
If you’re thinking about investing in luxury real estate, be sure to contact an experienced real estate agent serving the area as well as a reputable lending institution that offers jumbo home financing. eLEND is a proud provider of jumbo and investment home financing solutions for luxury real estate across the nation. For your free rate quote, call the number listed at the top of this page or submit your information electronically and an eLEND jumbo loan expert will contact you shortly.
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