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Where Are the Next Luxury Real Estate Opportunities?

Are there still opportunities for appreciation and growth in the luxury real estate market? And if so, where are they?

Enter “The Opportunity Index,” courtesy of The Report 2022.

Measuring a market’s percentage of price increase from 2020 to 2021 against current inventory levels, the Index evaluates and ranks 120 major U.S. luxury property markets according to their “opportunity,” or their buying potential in this new real estate environment.

If you’re searching for a luxury single-family property… 

Try Staten Island, Delaware’s Sussex County Coastal, Cincinnati, Charlottesville and Napa County.

All five of these markets demonstrated overall price stability and moderate drops in average sold prices over 2020 (ranging from -5% to -2%) – much lower than the national average gain of 24%. Staten Island ranked among the highest in terms of inventory levels out of any of the 120 markets analyzed, maintaining a 20% increase in inventory levels from 2020.

Sometimes called the “forgotten borough,” Staten Island is NYC’s second-wealthiest borough and its least populated. What was previously seen as its geographical shortcoming – it is insulated from Manhattan, connected only via the Verrazzano-Narrows Bridge or a 25-minute ferry ride – may be seen as an advantage if the pandemic endures past 2022. Inventory levels for both single-family and attached homes are comparatively small compared with bigger boroughs, but prices have not changed much over the last two years, earning the 58-square mile island a top spot on the Opportunity Index for luxury single-family properties.

Only two other markets recorded any inventory gains at all in 2021 – Sussex County Coastal and Cincinnati – while Charlottesville simply maintained its inventory levels from 2020.

If you’re searching for a luxury attached property… 

You might head to Cincinnatti – a millennial magnet and secondary city with a population of just over 300,000. Small, secondary metros have been on the rise lately thanks to their ability to offer improved safety, more space and better affordability compared to larger, more expensive metropolises. Cincinnati ranked No. 1 with a score of 305 for luxury attached homes (and incidentally, ranked No. 3 on the Index for luxury single-family homes).  Attached home prices dropped by 18% and inventory levels increased by 50% from 2020 to 2021.

Other places that made the list for attached property opportunities? North Carolina’s Lake Norman, California’s Marin County, the Greater Seattle Area and Coastal Pinellas County, Florida (which includes Tampa, St. Petersburg and Clearwater).

We explore these opportunity markets and many other potential 2022 bright spots — from rising secondary cities to the power of proximity, major comeback cities, southern boomtowns, second-home destinations and sustainable cities – starting on page 85 of The Report.



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Where Are the Next Luxury Real Estate Opportunities?

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