2020's Hot Luxury Markets Aren't On the Coasts
February 20, 2020
A list of “power markets” to watch in the luxury sector aren’t along the coasts of the U.S. like they usually are. Instead, a handful of booming luxury markets are coming from middle America.
Coldwell Banker released “The Report: State of Luxury 2020,” which provides an in-depth look of emerging luxury markets and buyers. The report notes that the migration of new markets within the luxury sector are being driven by several factors, including lifestyle preference, job opportunities, property value differentials, and a desire to reduce taxes.
The 2020 luxury markets to watch, according to their report, are:
- Boise, Idaho
- Charlotte, N.C.
- Colorado Springs, Colo.
- Cincinnati, Ohio
- Fort Worth, Texas
Researchers took into account sales-price-to-list-price ratios, days on the market, median list price, and inventory in determining its top five list of luxury markets to watch.
“‘Power Markets’ include both well-established and unexpected luxury markets offering a range of lifestyle amenities, cultural experiences, and education opportunities,” Coldwell Banker’s report notes. “Key indicators of ‘power’ status include airport accessibility, ease of doing business, a prestige brand presence, and a housing stock that prioritizes privacy, views, and exclusivity.”
2019 was a transformative year for the luxury housing market, says Ricardo Rodriguez, luxury property specialist with Coldwell Banker Residential Brokerage in Boston. “We watched millennials and the LGBTQ+ community become larger stakeholders in luxury real estate and shift the profile of who’s buying,” Rodriguez says. “New trends are on the horizon: eco-friendly and wellness-focused design is in for 2020, and larger homes aren’t always preferred like they once were. Now that energy efficient technologies are widely available, the expectation of a green-certified building is growing.”
Some additional highlights from the luxury housing report:
- Shortest days on market: Raleigh-Durham, N.C., had the shortest median days on market at a mere three days for single-family homes. For the condo market, Silicon Valley had the shortest median days on market at 11 days.
- Most affordable (price per square foot): Collin County, Texas, offered the most affordable luxury market for single-family homes. The median price per square foot was $164. In the condo market, Colorado Springs, Colo., had the lowest median price per square foot at $153.
- Most expensive (price per square foot): The priciest single-family housing market was in Malibu, Calif. The median price per square foot was $4,269 in 2019. Malibu also had the priciest square foot for condos at a $1,914 median price.
- Evolving market: Researchers flagged Bozeman, Mont., noting its rising population, which is now more than 100,000. Further, the city's average sales price is hovering more than $1 million. Buyers from California and Colorado are moving to the area and expanding its luxury housing market, the researchers note.
Updated: October 23, 2020