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Coldwell Banker Releases Report on Global Luxury Real Estate Market

Coldwell Banker recently released its annual “The Report,” an extensive analysis on the 2022 global luxury real estate market intended to identify emerging worldwide luxury real estate market trends, market growth opportunities and global wealth.

The Report provides an incredible in-depth look at not only real estate, but also wealth creation, market trends, buyers wants and desires, and almost anything else you can think of with regards to luxury real estate,” Nathan Zeder says, with The Jills Zeder Group, which is affiliated with Coldwell Banker Realty. “Looking at The Report and seeing how wealth creation was at almost an all-time high, coupled with inventory going down in almost every major market with buyer demand accelerating at the same time, it is no surprise that 2021 was an incredible year across the country and how real estate prices had major increases. As we move forward into 2022, the market still has room for growth as we are still dealing with extremely low inventory and a significant lack of foreign buyers, which, for the Miami market, have always been a staple and a good portion of the buyers we work with.”

Data from the report revealed that the world’s affluent population—those with a net worth of $5 million and up—grew 19.8% in 2021, adding 597,550 individuals for a total population of over 3.6 million people worldwide. Their combined wealth rose 20.4% to over $75 trillion—a significant jump from 2020, which only saw a 2.1% year-over-year increase. 

In the U.S., wealth growth rates were even higher in 2021, rising 24.8% in both total population and wealth during the same period, up from 8.1% in 2020. This massive wealth growth and increased number of affluent individuals was a key factor in the historic luxury real estate market expansion. In 2021, sales of luxury single-family homes, defined as the top 10% of any given market, rose 14.5%, while prices increased 20.3% from 2020. 

Other key findings revealed included:

International interest in the U.S. real estate market may return with approximately 83% of Coldwell Banker Global Luxury Property Specialists saying they anticipate the return of international buyers to the U.S. market. The U.S. states that attracted the most significant number of foreign homebuyers from April 2020 to March 2021 were California, Arizona, Texas, Florida and New Jersey.

Finding sustainable homes that limit environmental impact and offer protection from natural disasters and extreme temperatures has increased. Residences incorporating environmental wellness into the design can command price premiums of 10% to 25%.

Inventory levels for luxury single-family homes dropped from 19% to 36% year over year in Denver, Boise, Sacramento, San Antonio, Raleigh and Salt Lake City, which caused prices to rise from 19.9% to 37.5%. Manhattan alone saw a 101.7% increase in luxury sales during 2021.

“The Report sheds light on the extraordinary paradigm shift that has occurred within the luxury real estate sector since 2020,” Michael Altneu says, Vice President, Coldwell Banker Global Luxury. “Stock market gains, rising home equity, increased savings and the cryptocurrency boom have all contributed to a massive expansion of wealth and the sheer number of affluent individuals across the globe. This—combined with a renewed focus on home for fulfilling a range of needs from security, escape, community, work and wellness – has led to unprecedented demand for bigger and better homes in new locations. As a result, luxury is no longer concentrated in a few major cities; it’s everywhere and we’ll continue to see the growth of secondary markets for years to come.”

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Drew Limsky

Drew Limsky

Editor-in-Chief

BIOGRAPHY

Drew Limsky joined Lifestyle Media Group in August 2020 as Editor-in-Chief of South Florida Business & Wealth. His first issue of SFBW, October 2020, heralded a reimagined structure, with new content categories and a slew of fresh visual themes. “As sort of a cross between Forbes and Robb Report, with a dash of GQ and Vogue,” Limsky says, “SFBW reflects South Florida’s increasingly sophisticated and dynamic business and cultural landscape.”

Limsky, an avid traveler, swimmer and film buff who holds a law degree and Ph.D. from New York University, likes to say, “I’m a doctor, but I can’t operate—except on your brand.” He wrote his dissertation on the nonfiction work of Joan Didion. Prior to that, Limsky received his B.A. in English, summa cum laude, from Emory University and earned his M.A. in literature at American University in connection with a Masters Scholar Award fellowship.

Limsky came to SFBW at the apex of a storied career in journalism and publishing that includes six previous lead editorial roles, including for some of the world’s best-known brands. He served as global editor-in-chief of Lexus magazine, founding editor-in-chief of custom lifestyle magazines for Cadillac and Holland America Line, and was the founding editor-in-chief of Modern Luxury Interiors South Florida. He also was the executive editor for B2B magazines for Acura and Honda Financial Services, and he served as travel editor for Conde Nast. Magazines under Limsky’s editorship have garnered more than 75 industry awards.

He has also written for many of the country’s top newspapers and magazines, including The New York Times, Washington Post, Los Angeles Times, Miami Herald, Boston Globe, USA Today, Worth, Robb Report, Afar, Time Out New York, National Geographic Traveler, Men’s Journal, Ritz-Carlton, Elite Traveler, Florida Design, Metropolis and Architectural Digest Mexico. His other clients have included Four Seasons, Acqualina Resort & Residences, Yahoo!, American Airlines, Wynn, Douglas Elliman and Corcoran. As an adjunct assistant professor, Limsky has taught journalism, film and creative writing at the City University of New York, Pace University, American University and other colleges.