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Tampa Luxury Home Housing Report – March 2020

Last month’s article focused on a report by Wealth-X1 that provided information and insights on how they predict the “Wealthy will Fare during 2020.” Overall, the report forecast that the global wealthy population would not only continue to grow, but would see an increase in their net worth value.

The report also highlighted that a new generation of wealthy, defined as the Very-High Net Worth (VHNW), had become increasing significant in their spending power influences. This group, whose net worth is valued between $5-30 million, now commands over 25% of all millionaire’s wealth.
In the last 5 years, as well as globally, the demographics of wealth have changed significantly. A new generation of entrepreneurs and business leaders have entered into the rankings and both eastern and western hemispheres are feeling their growing influence on their economies.

Marketing approaches for the wealthy now require a different strategy. In years past, the title of ‘millionaire’ carried certain expectations for service. In today’s world, this expectation is now primarily reserved for Ultra-High Net Worth ($30 Million plus) where you can expect to work with their gatekeepers.

This is why this growing demographic of VHNW could become increasingly more important. While all wealthy individuals have similar character traits, the biggest defining difference in the VHNW demographic is the dominance of self-created wealth, with eight in every ten being self-made.

This difference is important, because unlike their Ultra Wealthy peers, many VHNW individuals are still managing their money and making direct decisions. They tend to be younger, mainly in mid-30s and early 40s, and highly engaged in digital technology, all of which, generally makes them more accessible.

However, as we have stated in previous reports, it is imperative to understand the buying trends of the demographic being targeted. Recognizing the significant shifts in the VHNW’s preferences will undoubtedly offer important indicators as to the future demand for luxury real estate.

While there has been a significant increase in wealth, the VHNW have shifted their buying power when it comes to deciding where to purchase their luxury homes. In recent years, there has been a marked change from the intense purchasing of US properties by international buyers, who once flooded the market after the Great Recession of 2008. Instead, they have turned their sights to other locations such as Europe, which is now heavily on their radar. However, this has opened the opportunity for domestic buyers – especially those looking to either diversify their portfolio or move to take advantage of US tax haven states.

Click here for the full report.

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