For the most wealthy people in the world, there are no limits. Their homes can be made anywhere, however a number of uber-wealthy home buyers continually choose Los Angeles, according to the 2015 Global Luxury Residential Real Estate Report recently released by Sotheby’s and Wealth-X.
The report, which is a compilation of wealth intelligence that determines where the world’s wealthiest are investing in real estate, found that the United States is the top second residence country outside of where wealthy property owners work and conduct their business. As such, the United States also had a number of cities in which foreign investors are most interested in purchasing a home. Los Angeles ranked in fourth place, just beating out San Francisco, Washington, DC and Dallas which were in spots five, six and eight, respectively. New York was the overall leader of the list.
This year’s list marks a return to prominence for Los Angeles, which was beaten out by San Francisco last year with more high net worth individuals. San Francisco has been quite the belle of the ultra-rich ball over the last few years. Fueled by growth in Silicon Valley, the Bay Area’s economy has been on a steady path upward for many years, bringing property values and investor confidence up with it.
Another interesting trend noted on the list was the supplanting of Chicago for burgeoning markets in Washington, DC and Dallas.
A Portrait of Wealth in Los Angeles
Wealthy home owners in Los Angeles are unlike those in the rest of the world, according to the statistical breakdown of the demographic provided in the report. Luxury home owners in Los Angeles account for a median net worth of $105 million. Unlike those in New York and other top-ranking locales where condos are more prevalent, Los Angeles wealthy are owners of single-family homes and property. When broken down by nationality, the majority of wealthy home owners in Los Angeles are from the United States, however there is also a surprisingly strong representation of those from the United Kingdom, rather than China and Saudi Arabia.
“The entire world has always had a fascination with the luxury real estate in Los Angeles – hoping for a glimpse of how America’s celebrities live. However, as celebrities and entertainment executives continue to seek privacy, UHNWIs are considering home in more remote areas like Malibu or Santa Barbara alongside traditional luxury hot spots such as Beverly Hills or Bel-Air,” said Frank Symons, executive vice president of Sotheby’s International Realty – Southern California.
Not surprisingly a large portion of the wealthy population in Los Angeles holds strong ties to the media, sports and entertainment industry; the highest concentration in the world in fact. The majority report Art and Film as their top hobby, while 24 percent were employed in the entertainment industry.
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