Introduction to Ultra-High-Net-Worth Individuals
The lucky number of individuals worth $30 million or more is expected to grow by 33% over the next five years — and they all need homes. A new report narrowed down where the moneyed are living, where they’re buying second homes and where they’re rubbing elbows. The data, compiled by the information services firm Altrata and reported by Mansion Global, geographically tracked the real estate moves of individuals with net worths exceeding $30 million.
Characteristics of Ultra-High-Net-Worth Individuals
In the industry, these filthy-rich buyers are referred to as “ultra-high-net-worth individuals,” and their residential footprint is growing internationally. Members of this affluent demographic own an average of three homes, according to the report.
The number of ultra-high-net-worth homebuyers is expected to grow 33% by 2030. Dorde – stock.adobe.com
Global Cities Preferred by the Ultra-Rich
New York City remains a favorite spot among the richest global residents. THANANIT – stock.adobe.com
“Today’s affluent think in currencies, not countries,” said Julie Faupel, ceo of the invite-only realtor community Realm, which sponsored the report.
US Cities Leading the Pack
If the richest of the rich did think in countries, however, the United States would be top of mind. A grand total of 15 US cities appeared on the report’s ranking of global metros with the most ultra-wealthy buyers. Only two European cities, Paris and London, made an appearance in the top 20.
New York City’s Enduring Appeal
New York City, in particular, continues to reign supreme among the global well-to-do. Big Apple homes are owned — but perhaps not occupied — by more than 33,000 ultra-high-net-worth individuals, according to the data.
Shifts in the NYC Luxury Market
The reputation of wealthy NYC buyers snapping up penthouses without regard for economic uncertainty and political shifts could be waning, however.
Jeremy Stein of Sotheby’s International Realty — which published a mid-year luxury market outlook in June — told The Post that the city’s ultra-luxury segment is no longer reaching the same heights it did in 2024. It continues to outperform the broader market, however.
The luxury co-op market, which struggles to compete with turnkey condos, is seeing a notable bounce back as sellers concede to more realistic pricing, Stein added.
Popular Destinations for Second Homes
Second homes in Miami are increasingly popular with luxury buyers. susanne2688 – stock.adobe.com
Certain enclaves are defined by their wealth, from Aspen to Monaco. NDABCREATIVITY – stock.adobe.com
Monaco boasts the highest density of ultra-wealthy residents and second homeowners in the world. Boris Stroujko – stock.adobe.com
Los Angeles, Hong Kong, and Miami
Ranking runner-ups Los Angeles and Hong Kong lagged behind New York with populations of upper-crust owners numbering close to 20,000 each.
Miami, a recent rankings climber, overtook New York as the most popular metro for luxury second homes. Miami beat out other hot spots like London, Beijing and Hong Kong with with 13,200 über-wealthy second-homeowners. Prosperity in the Sunshine State didn’t stop there — the relatively small metro of Naples notched an extreme ratio of 19 ultra-rich second-home owners for every one primary resident.
Aspen and Monaco
Aspen, Colorado ranked third for the highest concentration of ultra-wealthy owners. One in every 77 residents of the snowy city is worth more than $30 million, according to the report. The crème de la crème are packed in like sardines in Monaco, which leads the density rankings with one in 22 residents classified as ultra-wealthy.
Conclusion
The growth of ultra-high-net-worth individuals and their preference for certain global cities and luxury destinations is a trend that continues to shape the real estate market. As the number of these affluent buyers is expected to increase, it will be interesting to see how their residential choices evolve and which cities emerge as new favorites.
FAQs
- Q: What is the expected growth rate of ultra-high-net-worth individuals over the next five years?
A: 33% - Q: Which city has the highest number of ultra-high-net-worth individuals?
A: New York City - Q: What is the average number of homes owned by ultra-high-net-worth individuals?
A: Three - Q: Which city overtook New York as the most popular metro for luxury second homes?
A: Miami - Q: Which city has the highest density of ultra-wealthy residents and second homeowners?
A: Monaco
