Confirmed: Bazillionaires Spend More on Luxury Homes in LA and NYC
Rent is like, ugh, so high. This we know. But it's important to put things in perspective -- we could be spending a lot more. You know, if we were all billionaires and had lots to spend!
Whatever side of the money-losing spectrum you're on, Christie’s International Real Estate recently released its annual "Luxury Defined" report, which analyzes trends in the global luxury residential market. What qualifies as a "luxury home" differs around the world in both price and property traits. For its study, Christie’s divided markets into categories identified by population size, number of high-net-worth residents, buyer types, home purchase type, housing mix, and general economic indicators.
All that is to say: it's still unclear what "luxury" means, aside from "what rich people spend oodles of money on."
From Christie’s findings, Forbes -- also noticeably unable to define "luxury" -- collected the top five cities for million-dollar homes, based on average starting points for luxury homes. Globally, the average starting price for a luxury home is $2 million. But Beverly Hills has the highest point of entry in the world at $8 million, followed by New York, with a $5 million-plus starting point, and San Francisco with $3 million. If you happen to be ultra-rich, it appears big US cities are the places to prove it by gobbling up expensive real estate.
The report also suggests "trophy" (let the cringing commence) is the new buzz-word among the real estate elite -- in 2014, a record number of billionaires found their "trophies" when more properties than ever before were both sold and listed at $100 million (!!) or more. Perhaps that explains why normal people can't afford to live in any of these places anymore. We'll be over in the corner, hugging our 4th-grade softball trophies. Totally the same thing.
Now is probably the right time to get behind a get-rich-quick scheme, right? Those are notorious for panning out well, anyway! Or, if dropping a few mill on "luxury" is just a casual activity for you (same!), here are the top five places to flaunt your wealth:
3. San Francisco
2. New York
1. Los Angeles