Home›Real Estate›Residential›West Palm Beach leads luxury home premium versus typic…

West Palm Beach leads luxury home premium versus typical homes

In West Palm Beach, the typical luxury home sold for $4.5 million, 8.9 times the typical non-luxury sale price over the three months ended in May.

Reported · Written up by our desk · Residential

Redfin says West Palm Beach has the largest luxury home price premium among the 49 most populous U.S. housing markets, with the typical luxury home selling for $4.5 million over the three months ending in May. That price was 8.9 times higher than the typical non-luxury home sold in the same period.

Redfin also found Miami closely followed, where the typical luxury home sold for 8.8 times more than the typical non-luxury home. New York City ranked next, with the typical luxury home priced 5.5 times above the typical non-luxury home.

Nationwide, Redfin reports the typical luxury home costs 3.6 times more than the typical non-luxury home, compared with 3.5 a year earlier. In May, luxury home prices rose nearly five times faster than non-luxury prices, while high-end buyers remain less affected by high prices and mortgage rates, according to Redfin.

Redfin Principal Economist Sheharyar Bokhari attributed South Florida’s appeal to factors including Florida’s favorable tax environment, warm climate, and waterfront lifestyle, saying the mix continues to draw demand for ultra-wealthy buyers. Redfin Principal Agent Dina Blau added that the buyers relocating to West Palm Beach are “wealthier and younger” than in prior years, with many moving from New York, New Jersey, and California and relocating earlier in life, often in their 40s and 50s.

More like this

Sources