America’s billionaires are still eagerly snapping up luxury properties in some of the nation’s most desirable locations – despite major climate risks and soaring prices.
Wealthy buyers are continuing to flock to coastal areas like Malibu, Palm Beach, and Miami – despite the risk of increasing climate disasters.
Industry experts reveal that billionaires are largely immune to typical home-buying hurdles, as they can afford top-tier protection against natural disasters and often own multiple homes to escape extreme weather.
Recent high-profile sales highlight this trend, with Oakley founder James Jannard selling his Malibu estate for a California record $210 million in June, as reported by Realtor.com.
Supermodel Karlie Kloss and husband Joshua Kushner have also bought one of Malibu’s most iconic beachfront mansion for nearly $30million.
America’s billionaires are still eagerly snapping up luxury properties in some of the nation’s most desirable locations – despite major climate risks and soaring prices
Wealthy buyers are continuing to flock to coastal areas like Malibu, Palm Beach, and Miami – despite the risk of increasing climate disasters
Laurene Powell Jobs paid $94 million for a Malibu beachfront property, adding to her existing properties in the area.
Jay-Z and Beyoncé also shelled out $190 million for a Malibu mansion last year.
These ultra-wealthy buyers are demanding instant perfection, seeking ‘triple-mint’ turnkey properties and unwilling to wait for renovations, as reported by Realtor.com.
‘The most important factors we see Palm Beach buyers looking for, universally, are one, instant gratification or turnkey products, and two, value,’ Margit Brandt, with Premier Estate Properties, Inc. in Palm Beach told the outlet.
Supermodel Karlie Kloss and husband Joshua Kushner have also bought one of Malibu’s most iconic beachfront mansion for nearly $30million.
Laurene Powell Jobs paid $94 million for a Malibu beachfront property, adding to her existing properties in the area
‘Buyers want to feel like they can enjoy their purchase sooner rather than later.
Brandt explained that the ultra rich may also not be impacted by hurricane season because they fly down after thanksgiving.
‘Most Palm Beach residents skip hurricane season [then fly down] after Thanksgiving,’ Brandt explained. ‘Or they will often decamp back to their [northern] summer home by air if necessary.’ she said.
There are also new standards developed as a result of extreme weather patterns.
‘The new FEMA regulations and the requirements of insurance providers have really encouraged or mandated that developers and custom builders reach certain standards in terms of wind and flood protection,’ said Brandt. ‘These improvements in the building code have prepared the region well for storms.’
Additionally, places like Malibu are appealing due to its natural beauty and proximity to key industries.
Creative financing options also play a role in this luxury market boom.
The ultra-rich can leverage their assets for competitive loan rates or simply pay cash, sidestepping the high mortgage rates that impact average buyers.
Many billionaires view economic turbulence as an opportunity to negotiate better deals with their vast cash reserves.
‘Many feel times of turmoil give them a better opportunity to use their cash to negotiate a better deal,’ John Antretter, a licensed associate real estate broker with The Agency, told Realtor.com.
Meanwhile, soaring home prices and mortgage rates have sidelined many average homebuyers, however, some states have seen declines since last year.
Brandt explained that the ultra rich may also not be impacted by hurricane season because they fly down after thanksgiving. There are also new standards developed as a result of extreme weather patterns (Pictured: Flooded homes stand in a rural part of Naples)
Twenty of the US’s fifty largest cities have seen declines since last year, according to a June report by Realtor.com.
The news will be welcome to cash-strapped first time buyers and others priced out by higher mortgage costs.
The average home price across the country was $442,500 as of May – which is ‘relatively stable compared to the same time last year,’ according to Realtor.com Chief Economist Danielle Hale.
But some areas are seeing big drops, including Miami where the average price dropped 11 percent.