Billionaires are driving up home price in South Florida – with a typical home in Palm Beach costing $14million
A growing number of billionaires moving into Florida’s wealthiest neighborhoods is driving East Coast home prices to record levels.
The median sales price for single-family homes in Palm Beach was $14 million in September 2023 — up 117 percent year-over-year, according to national real estate brokerage Redfin.
Palm Beach is just north of Miami, where prices have risen 7.7 percent in the past year to a median sales price of $599,000 for a family home.
This is significantly more than other more northerly Florida hotspots such as Orlando, where the average price is $425,000 – a more modest increase of 1.9 percent over the past year, which is less than the inflation rate of 3.7 percent in the twelve months to September.
Millionaires and billionaires are flocking to the Florida coast to escape the high-tax Democratic-led states of California and New York.
Eye-watering prices of oceanfront homeowners in Palm Beach dwarf even the cost of living in other famous celebrity hotspots, such as San Francisco, where the average price of a family home is $1.6 million.
The median sales price for single-family homes in Palm Beach was $14 million in September 2023. This pales in comparison to similar medians in Manhattan and San Francisco
A growing number of billionaires moving into Florida’s wealthiest neighborhoods is driving East Coast home prices to record levels
Located just north of Miami, Palm Beach has seen a 117 percent year-over-year increase in home prices
In Manhattan, the average price is $1 million, $345,000 in Houston, $238,500 in Indianapolis, Indiana and $80,000 in Detroit.
Chris Leavitt, a top real estate agent in Palm Beach with Douglas Elliman, described prices in the elite East Coast city as “staggering.”
“There’s very limited supply, especially on the ultra-high net worth side, where the clientele is all scrambling for that great lake or oceanfront property,” he shared. NBC.
The rapid price increase could be due in part to thousands of wealthy homeowners moving from Manhattan to Miami.
Redfin calculated a net outflow of 5,776 Manhattan residents leaving for the Magic City alone during the three months from July to September 2023.
“You can still find a nice house here for under $10 million,” Leavitt said. “I know this sounds like an alternate universe. Because yes, this is an alternate universe.’
The record for the most expensive home sold in Palm Beach was set in April, when luxury car dealer Michael Cantanucci paid $170 million for a 1.6-acre oceanfront mansion.
Redfin calculated a net outflow of 5,776 Manhattan residents leaving for the Magic City alone during the three months from July to September 2023
Chris Leavitt, a top real estate agent in Palm Beach with Douglas Elliman, described prices in the elite East Coast city as “staggering.”
“There’s very limited supply, especially on the ultra-high net worth side, where the clientele is all scrambling for that great lake or oceanfront property,” said one Palm Beach real estate agent.
Tech billionaire Eric Schmidt, who is among the 100 richest people in the world, is the latest to acquire a collection of properties in Miami
Tech billionaire Eric Schmidt, who is among the 100 richest people in the world, is the latest to acquire a collection of properties in Miami.
Together with his wife Wendy, the former Google CEO has bought more than six homes on the Sunset Islands, spending more than $140 million.
Meanwhile, hedge fund billionaire Ken Griffin recently unveiled plans to build the world’s most expensive home on Palm Beach.
His $1 billion mega-estate, spread over 20 acres in the resort, is just a quarter mile from Donald Trump’s Mar-a-Lago and Billionaire’s Row.
Among the rich and famous neighbors in the area are Jeff Bezos, who spent $150 million on two adjacent properties in Indian Creek Village, and National Football League legend Tom Brady.