Affluent international consumers are dreaming big when it comes to their U.S. home purchase, says new Coldwell Banker Global Luxury data
MADISON, N.J., March 7, 2023 /PRNewswire/ — From diverse American cities and regions to being inspired by Hollywood, wealthy international consumers are dreaming of home in the United States. According to a recent survey by Coldwell Banker Real Estate LLC, an AnywhereSM (NYSE: HOUS) brand, and the Coldwell Banker Global Luxury® program, affluent international buyers are dreaming big, spurned by location/lifestyle preferences, an overall positive outlook on the U.S. luxury real estate market and more.
In fact, a significant number of respondents say they are optimistic about the state of the U.S. real estate market; 80% of luxury consumers believe purchasing real estate in the United States is a safe investment and 76% rate the current market conditions to purchase a home as “excellent and/or good.”
The survey conducted in partnership with Censuswide highlights the consumer sentiments of over 1,200 high-net-worth consumers from 12 countries. The findings serve to unpack the dreams, desires and attitudes of international luxury home buyers, offering insight into what’s driving their interest in U.S. real estate, where they’re dreaming of moving to and the factors impacting those relocation purchases.
International investors are willing to bet on U.S. real estate:
Traditionally seen as a hedge against inflation, real estate may provide financial, emotional and psychological stability, especially in the face of uncertain market conditions. International wealthy consumers seek to diversify their real estate portfolios, build generational wealth and make opportunistic buys in luxury markets. In fact, 84% say they already own residential real estate outside of their home country.
The survey also reveals, virtually all (97%) respondents from Mexico consider purchasing real estate in the United States as a safe investment, ranking them the most likely country surveyed to do so. Participants from Spain and the United Arab Emirates did not fall far behind with 92% saying that U.S. real estate is a safe investment.
Desires, dreams and motivations for purchasing in the U.S.:
Consumer motives and preferences are not universal when it comes to international buyers looking for their dream home in the U.S. The survey indicates that some of the leading motivations to purchase property in America are as follows:
1. Frequent work/business trips to United States cities
2. Three-way tie:
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- A movie or television series based in the United States
- A recent vacation to a United States city
- Investment opportunity
3. Social media
4. Dual citizenship / golden passport
The below amenities are rated as the top five most important for international respondents based on their desires when selecting a dream home purchase abroad:
1. Latest smart home technology
2. Eco-friendly and sustainable design features
3. State-of-the-art security system
4. Home with breathtaking views
5. Privacy
International consumers are dreaming of new destinations:
It’s evident that the United States has captured the hearts of international home buyers for various reasons with the nation’s cities offering diversity in experience and atmosphere from coast to coast. Respondents identified the following as their top choices for their dream location of their next home purchase:
- Cultural diversity and prominent architecture like Chicago
- Ranked highest by Argentina with over a quarter (27%) of respondents, followed by Costa Rica (20%)
- In the hustle and bustle of a major city like New York
- Ranked highest by Spain with nearly a quarter (24%) of respondents, followed by Mexico (20%)
- Warm weather with sprawling homes among the glamorous elite like Los Angeles
- Ranked highest by Portugal with 21% of respondents, followed by Turkey (16%)
- A waterfront property with breathtaking views like Miami
- Ranked highest by Costa Rica with just under one-fifth (19%) of respondents
- A luxurious resort town in the mountains like Aspen
- Ranked highest by France, with one-fifth (22%) of respondents
Coldwell Banker Global Luxury Property Specialists can guide you home:
Luxury property specialists are seen as a trusted resource to a community and all that it offers. The survey results reveal that 88% of respondents are highly likely to lean on the support of an agent when navigating the process of purchasing a home abroad. In addition, younger millionaires aged 25-34 are the most likely age group to use an agent for an international home purchase (97%).
As the connection point to their communities, the white glove service and world-class expertise of a top agent provides immeasurable value. Beyond sharing market knowledge, agents serve as resource to sharing insights on other factors luxury buyers consider when purchasing a property, like connections to desired schools, introductions to social groups and much more.
Coldwell Banker offers a robust network of affiliated agents and resources available to provide around-the-clock support and expertise needed to navigate the international buying process and help secure their clients’ dream home.
QUOTES:
“The dream is alive and well for the international consumer; our international survey spotlights what’s attracting luxury international buyers to the U.S. real estate market. With 88% of respondents stating that they’re likely to use a real estate agent, it bodes well for Coldwell Banker Global Luxury Property Specialists who have the knowledge and network support to provide guidance to these luxury international buyers as they seek their American dream home.”
– Liz Gehringer, president of Coldwell Banker Affiliate Business and Chief Operating Officer, Coldwell Banker Real Estate LLC
“The appetite for owning U.S. real estate from overseas buyers has never been stronger according to our survey. From investment opportunities to even being inspired by the entertainment industry and social media, buyers are confident in putting their money towards their dream of making the United States their home away from home. From coast to coast, there are plenty of reasons why wealthy buyers aspire to American living.”
– Michael Altneu, Vice President, Coldwell Banker Global Luxury® program
Methodology
The Coldwell Banker Global Luxury® program collaborated with Censuswide to gauge luxury international consumer sentiment towards U.S. real estate. The survey consisted of 1,202 people with a household income of $1 million+ who would consider purchasing a luxury home worth $1 million+ from the UK, France, Italy, Portugal, Turkey, United Arab Emirates, Argentina, Canada, Spain, Costa Rica, USA and Mexico, with quotas of a minimum of 100 per the regions targeted. Data contained is from January 6th, 2023 – January 25th, 2023. Censuswide abides by and employs members of the Market Research Society, which is based on the ESOMAR principles.
About Coldwell Banker Global Luxury® program
The Coldwell Banker Global Luxury® program legacy traces its roots to 1933 and has been a world leader in luxury real estate since. Coldwell Banker Global Luxury Property Specialists are an exclusive group within the Coldwell Banker® system, making up under ten percent of independent sales associates affiliated with the brand worldwide. Coldwell Banker affiliated agents conducted 48,444 transaction sides of homes priced at $1 million or more in 2022. This equates to $288 million in daily luxury sales with an average sales price of $2.2 million in this category.* Coldwell Banker, the Coldwell Banker logo, Coldwell Banker Global Luxury and the Coldwell Banker Global Luxury logo are registered marks owned by Coldwell Banker Real Estate LLC. Each franchise is independently owned and operated.
*Data based on closed and recorded buyer and/or seller transaction sides of homes sold for $1 million or more as reported by affiliates of the U.S. Coldwell Banker franchise system for the calendar year of 2022. USD$.
Source: www.prnewswire.com
