Palm Beach, Florida, continues to dominate as possibly the ‘hottest market in the world’ for luxury homes, according to some experts. Known for its gorgeous island getaways for wealthy millionaires and billionaires, Palm Beach is seeing a growing trend among potential homebuyers. Not only do wealthier people continue to move there, but the inventory for much of the homes in the area has also spread continued to spread thin.
To give you some perspective, the average home value for that expensive home in Palm Beach was approximately $7 million during the last quarter of 2020. According to a report from Douglas Elliman and Miller Samuel, signed contracts for homes in the region surged by 62%. That’s pretty incredible news as more families look to relocate to states like Florida. Unfortunately, it spells bad news for many more families looking to buy as the report also shows inventory dropping by nearly 80%. Clearly, there is a dynamic interest in living in Palm Beach!
Erin Sykes, recently appointed as Chief Economist for Nest Seekers International, has had her own issues with procuring homes for her clients. She said the following: "I have a client who wants to spend $25-$30 million and there is simply nothing available. I am making calls daily for leads to off-market properties." Think of that! Even though one has the funds to afford a luxury property there, it often cannot be done simply because there aren’t enough homes to go around. Whether it’s single-family units or condos or multi-bedroom homes, the craving is there to buy whatever comes available.
One of the biggest driving factors for wealthy people moving to Palm Beach has to do with the lower taxes throughout the state. Many of these individuals are leaving states like New York, California, and Connecticut because their taxes are so high, particularly for the wealthy. Another nice bonus to Florida is the fact that it doesn’t have a state income tax. Even if you’re not in a classification of millionaire or billionaire, living in a state that doesn’t constantly find new ways to take more of your money is always an added appeal.
Another factor that has always been a part of why more and more people continue to move to Palm Beach and Florida, in general, is the amazing weather. As I write this, it’s just shy of 80 degrees in Palm Beach in the latter half of January. Typically, when people reach retirement, they tend to navigate to warmer climates; and the wealthy are no exception.