Strength of the U.S. dollar and rising costs of living have U.S. affluent buyers looking abroad for their dream home, according to new Coldwell Banker Global Luxury data.
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Whether it is the desire for warmer weather, better prices or experiences around the world, wealthy U.S. buyers want to move abroad. According to a recent survey released by Coldwell Banker Real Estate LLC, an AnywhereSM brand, and the Coldwell Banker Global Luxury program, the dream is alive and well for wealthy home buyers looking for opportunities internationally, driven by the strength of the U.S. dollar as the cost of living and home prices continue to rise domestically.
The survey found that nearly half of Americans surveyed want to invest their wealth for a better way of life.
In fact, 40% of consumers say their desire to purchase a home in their dream location was due to the higher quality of living offered or because of the investment opportunities presented (41%).
The survey conducted by Censuswide, showcased in The Trend Report, highlights the consumer sentiments of over 2,000 U.S. high-net-worth consumers and key trends driving today’s luxury real estate market. Backed by additional insight from Coldwell Banker Global Luxury Property Specialists and data collected by the Institute for Luxury Home Marketing and Wealth-X, the report offers insights into where wealthy U.S. consumers are dreaming of moving to and the factors impacting those relocation purchases.
Wealthy buyers are considering international regions for their next home purchase.
The Trend Report revealed that 67% of Americans surveyed already own residential real estate outside of the U.S. However, many are considering where they might expand their real estate portfolio for their next investment. The following regions are the top three locations buyers would consider when purchasing a property abroad:
- Central America (23%);
- North America – Canada and Mexico (20%)
- Asia (20%).
“Luxury consumers keep on dreaming! Whether they’re looking for a warmer city or opportunities for investment, wealthy buyers are factoring in their lifestyle preferences when considering the location of their next purchase. The Trend Report gives us tremendous insight into what’s really driving the American luxury consumer, how they’re looking to build their wealth and their propensity for purchasing their dream home abroad.” – Liz Gehringer, President of Coldwell Banker Affiliate Business and Chief Operating Officer, Coldwell Banker Real Estate LLC.
From Central America, the top three countries where affluent buyers would purchase a property include: Belize, Costa Rica and Panama.
Strength of the U.S. dollar and rising costs of U.S. living is driving more consumers to desire purchasing an international home within the next year.
Affluent consumers are looking beyond borders for their next purchase. According to Wealth-X figures, the number of American high-net-worth individuals who purchased a property abroad in 2022 is projected to rise by 14% from 2021 and 29% from 2019. Here are three main reasons that more than a quarter of survey respondents are planning an international home purchase within the next year:
- Rising cost of living;
- Surging home prices;
- Strong dollar relative to other global currencies – nearly a quarter of Americans;
- More wealthy home buyers desire homes in warm weather and the suburbs.
Noted in The Trend Report and backed by survey findings, property investment is a priority for the wealthy, no matter the market environment.
Driven by opportunities to grow and build their wealth and higher quality of living, the survey found that affluent consumers desire to purchase homes in warm weather or suburbia with an abundant amount of space.
The following are the top five locations respondents would live if they could live anywhere:
- Home in a location with warm weather / near the water (23%)
- Suburban home with ample space (22%)’
- In the hustle and bustle of a major city with plenty of accessible amenities (19%);
- Remote and off the beaten path with a large plot of land (19%);
- A mountain town (16%).
“The Trend Report highlights many of the emerging trends we see in the luxury market, one of those being the great appeal of properties abroad. Wealthy buyers are prioritizing their investments, looking at the economic state of their current location and factoring in their own desires. With those in mind, it’s no surprise that many luxury U.S. consumers continue to dream of their next purchase overseas. With offices in more than 40 countries and territories, our Coldwell Banker Global Luxury Property Specialists are equipped and ready to guide luxury buyers as they embark on their real estate journey abroad.” – Michael Altneu, Vice President, Coldwell Banker Global Luxury program.
“While California continues to be a hotspot for both domestic and international luxury buyers, I’ve also seen domestic buyers looking overseas. To ensure a smooth buying process from beginning to end, it’s paramount to work with an agent who deals with international luxury transactions. I’m incredibly grateful to be part of the International Luxury Alliance (ILA), an elite group of agents from around the world who specialize in assisting the affluent fulfill their luxury dream home aspirations.” – Jade Mills, president, Jade Mills Estates and International Ambassador of Coldwell Banker Global Luxury program.
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