The Institute for Luxury Home Marketing is recognized as a leading source for providing statistical data and analysis on the luxury real estate market.
In the recent release of their annual Luxury Report, Coldwell Banker Global Luxury partnered with The Institute to garner clearer insights on the state of the luxury real estate industry during 2019. The overall trend showed that affluent buyers had started to actively look beyond traditional luxury hotspots for communities and markets that offered better home values, a closer sense of community, and a better quality of lifestyle.
The Institute for Luxury Home Marketing identified five luxury housing markets that saw notable home sales and price growth during 2019 as well as ongoing potential and opportunities for affluent homeowners in 2020.
After analyzing economic factors such as job and population growth against annual metrics including sales-price-to-list-price ratios, days on market, median list price and inventory, it was determined that Boise, Charlotte, Colorado Springs, Cincinnati and Fort Worth were among the strongest performing housing markets to watch in the year ahead. These markets and their statistics are showcased in more detail on pages 56 – 67 of The Report.
Boise experienced a growth spurt in 2019 with its population expanding to over 750,000, and was also listed in Realtor.com®’s top markets to watch in 2020. The lower house prices and expanding job opportunities from established companies such as Micron Technology, Paylocity and Hewlett Packard attracted a younger demographic to the city as well as many returning locals.
Migration to this “City of Trees” has mostly stemmed from California, but there was also a growing number of people moving from the Pacific Northwest and Alaska. Entrepreneurs, second homeowners, and real estate investors created the demand for higher-end properties. This growing luxury market also provided a good mirror to the new preferences and home choices currently being made by today’s affluent buyers—find out more on page 64 in The Report.
In 2019, more than 60 people per day moved to Charlotte; it is now the 16th largest city in the U.S. Between 2017 and 2019, North Carolina’s largest city not only saw a growth of over 13,000 residents, but also a substantial increase in both its home prices and sales.
Recent urban revitalization created an infusion of new restaurants, rooftop bars, galleries, museums and sports complexes. Discover how this city adapted to this growing demand and the developments happening in its historic and inner-city neighborhoods on page 60 of The Report.
Companies such as Honeywell, Lending Tree, SunTrust, BB&T and Trust Bank created opportunities for higher-paid salaries, which contributed to the growth of Charlotte’s luxury real estate market.
Cincinnati has become known as a city of surprises, with its visitors and new residents quickly learning about its incredible depth and variety when it comes to sports, arts, culture, history, and culture. Ohio’s 3rd largest city boomed into a Tier 2 market, and is now at a crossroads, riding a wave of expansion and revival.
Medical and banking businesses continued to entice investment. Fortune 500 companies, including GE, Procter & Gamble and Macy’s, attracted young professionals seeking a progressive, open-minded city. This assisted in an LGBTQ community and immigrant population putting down local roots.
Demand was at its highest for renovated properties incorporating smart home tech and eco-friendly features. Energy efficiency, turn-key, move-in ready and refurbishment of existing materials were high priorities for Cincinnati buyers.
Colorado Springs, Colo.
Between 2016 and 2019, Colorado Springs saw a 1,300 percent increase in luxury sales. The contributing factors were a strong local economy, more tech companies and out-of-area buyers desiring the Colorado lifestyle.
Tech companies such as Apple, Facebook, Google and Lyft set up shop in Denver and Amazon opened a campus in Boulder, just 27 miles away. These companies brought a younger workforce to the area, but due to the lower price points in Colorado Springs, many purchased properties here while accepting the need to commute. Check out luxury home prices on page 59 of The Report.
But there is more to Colorado Springs that just a commuter town, resting at the foot of the Rocky Mountains. This charming town drew in many new residents with its uniqueness, privacy, breathtaking views and incredible outdoor lifestyle.
Fort Worth, Texas
Our last city is Fort Worth, which has transformed over the last decade while managing to keep its sprawling acreages and cattle. The city integrated global headquarters and upscale hotels, and is quickly coming out from under the shadow of its sister city, Dallas.
According to the U.S. Census, the city grew 20.2 percent since 2010, outpacing Texas’ 14.1 percent and becoming the country’s 13th most populous city in 2018. Stanley Black & Decker has relocated here, Panoramic Doors and Chip 1 Exchange are moving their operations from California, and Charles Schwab is moving its headquarters here too, while American Airlines and BNSF Railway already call Fort Worth home.
According to the 2019 Texas Relocation Report, nearly half of Texas’ 500,000 annual newcomers moved to Dallas-Fort Worth, so it’s not surprising to hear there is a lot of growth in the purchase of new luxury homes.
For further insights into these five Markets to Watch, as well as other insights, trends and statistical information about the luxury real estate market during 2019, visit THE REPORT: Global Luxury Market Insights.
Additionally, The Institute’s comprehensive, downloadable monthly Luxury Market Reports will give you the insights you need to stay ahead of trends throughout the United States and Canada, and deliver a monthly analysis on over 80 different luxury markets in North America.
Diane Hartley is the president of the Institute for Luxury Home Marketing, a premier independent authority in training and designation for real estate agents working in the upper-tier residential market. Hartley brings her passion for luxury marketing and more than 20 years of experience growing and leading businesses to her role as president of the Institute.