THE REPORT 2022
Executive Summary
- Global wealth rises by double-digits in 2021. Data from Wealth-X shows that the world’s wealthy population — those with a net worth of $5 million+ — grew 19.8% from 2020 to 2021, adding 597,550 individuals to bring the total population to 3,612,730 individuals worldwide. Their combined wealth rose 20.4% to over $75 trillion. This was a significant increase from 2020, which saw only a 2.1% YOY gain. U.S. wealth growth rates were higher in 2021, rising 24.8% in both total wealth and population of individuals with a net worth $5 million+ YOY.
- The Great Reconciliation leads to historic real estate expansion. Massive wealth creation, combined with a transformation of living patterns that is expected to last for generations to come — also called the “Great Reconciliation” — led to insatiable demand for larger homes and more homes, depleted inventory and soaring prices. In 2021, sales for luxury single-family homes rose 14.5% while prices increased 20.3% from 2020. Sales for attached luxury homes saw a more dramatic uptick of 29.6% YOY and a 16.6% increase in prices.
- A new map opens up for luxury. Wealthy consumers are no longer concentrated in cities like Los Angeles and New York. They are everywhere, in places like Colorado, Idaho, Georgia and Tennessee. Work-from-home opportunities, the desire for extra space, climate change considerations and accessibility to their dream locations means luxury may continue to expand throughout the country as consumers search for the home that best fits their needs and desires.
- Six trends set to influence luxury real estate in 2022. Curated from market insights provided by The Institute for Luxury Home Marketing and a survey conducted with Coldwell Banker Global Luxury Property Specialists, six emerging trends may potentially influence the market and buying preferences of the affluent in 2022. These trends include: the return of international buyers to the U.S. property buying scene, a supply and demand equilibrium, rising price thresholds and new luxury benchmarks, a growing focus on sustainability and a widening market for multiple homeownership as nearly 70% of individuals with a net worth of $5M+ now own two or more properties.
- Where are the next opportunities? The Opportunity Index, introduced for this year’s The Report, highlights 120 major U.S. luxury property markets according to their "opportunity," or their buying potential. These markets may still have room to rise and houses to buy in 2022, which include hidden gems and undiscovered suburbs right next door to known affluent hotspots.
- Where do the world’s wealthiest live outside of the U.S.? As multiple homeownership climbs among the wealthy and relocations are expected to continue, it is important for luxury real estate professionals to understand wealthy individuals’ relationship to location and their preferences for primary or secondary home ownership in those places. Data provided by Wealth-X shed more light on 21 major cities outside of the U.S.with the highest populations of wealthy individuals (those with a net worth of $5M+), primary vs. secondary homeowners and residential vs. real estate footprints in these locations.
To read the full report, click here.
