According to a report produced by WealthEngine, Wealth-X and The Institute for Luxury Home Marketing , there has been an 180% increase in luxury property ownership in a mere three-year period.
Buyers are flocking to cities with walkability, a focus on nature and well-rounded quality of life, with an eye for good food and a vibrant art scene; they are tech savvy and environmentally conscious.
For companies like Beacon Street Development Company, who have been shaping the quality and character of the community since 2004, with boutique residences including The Wade, Fairview Row and now The George in Durham, set to start construction in spring 2022, the demographic evolution of the Triangle has been fascinating to watch.
With several units already under contract at The George in downtown Durham, this seven floor condo building, with residences starting in the $400s and the highest priced units over $2m, will be among the area developments redefining the high-end real estate landscape.
Many buyers were inspired to finally buy their dream home during the pandemic and competed for move-in ready homes with attractive features – and sellers generated a premium for them.
In August of 2021, the Raleigh area saw steep competition for housing which yielded the most bidding wars nationally over that period with 87% of homes having multiple offers, making us the most cutthroat real estate market in the country.
Raleigh recently ranked sixth out of 130 local markets by the Homebuilders’ Local Opportunity Index , which identifies regions with the best short- and long-term opportunities for investing in constructing new homes.
Over the last 60 years, companies have flocked to the Triangle – capped off with the addition of Apple and Google who in 2021 announced future campuses here – and we will likely see this continue.
With strong demand and shrinking supply in virtually every sector of the market, we have experienced a sharp rise in home prices and inventory shortage among the high end real estate market that we would typically expect among lower-priced homes.
As these groups consider the overall quality of life and fashion in their home buying decisions, “The industry stands at the door of opportunity.
And for the Triangle area, flush with millennials with a median age of 37.5 years, many of which not surprisingly at high earning tech jobs, the direction of the luxury real estate market may never look the same.
In the Triangle area, luxury real estate, defined as the top 10% of homes sold, includes properties which have closed at or above $750,000, and as of December 2021, the multiple listing service for the area has 2% of the homes for sale priced above $2m.
New buyers moving to the area who have often been accustomed to higher priced properties or those which offered fewer amenities for the same investment elsewhere are propelling second-tier markets throughout the country like the Triangle.
The appreciation of desirable neighborhoods and locations will no doubt continue in places like downtown Raleigh and Durham,” where their upcoming projects will include The George, and recently announced, Caswell Heights and Budleigh East.
We’re doubling down and reinvesting in what already makes these communities so great – the people and the streets.” It is in this, that there is not just a symbiotic relationship between wealth and real estate as we have examined but also one that exists when an already great place breeds great growth.
Erica’s background in finance and marketing is matched with a personal passion for an unparalleled experience, love of home design and inability to sit still – always brainstorming how to better position her gregarious clients real estate investments to support their lifestyle and financial ambitions.