Rising interest rates. Natural disasters. There are a host of reasons not to buy a home in the current real estate market — particularly in certain areas.
But the ultra-rich are unfazed. As most of the market recovers from its pandemic hangover , megamansions in some cities have been immune to the slowdown. Across the country, billionaires are still spending tens of millions of dollars on homes, despite traditional logic telling them to park their money elsewhere.
A new report from Realtor.com says that six cities have emerged as the favorites of the elite so far this year, and two of them are in California. Tops for the fat-cat crew are Malibu, San Francisco, Aspen, New York City, Miami and Palm Beach.
All six have seen sales north of $50 million so far in 2024, and a handful have seen sales much, much higher. In May, a private island compound in Palm Beach fetched $152 million, setting the all-time price record in the Sunshine State. California saw a record of its own a month later when Oakley founder James Jannard sold his Malibu spread for $210 million.
For every excuse not to buy, billionaires find a workaround, the report said. For example, climate change and its ripple effects — floods, fires and storms — threaten homes in coastal communities across California and Florida. But Federal Emergency Management Agency regulations and insurance providers have raised the standards for homebuilders and developers, requiring increased wind and flood protection.
So well-hee.