Luxury Housing Market Looks Strong As COVID Threat Begins to Pass

For a brief period of time, small houses were all the rage and big houses had to take a step away from center stage. Today, we’re going to discuss the cities that are seeing the strongest surge in demand for big houses (some people refer to these as” McMansions,” as a derogatory term); but you can’t please everyone all the time. “Big” houses consist of homes with 4,000+ ft2; these homes were selling much faster in February 2021 than they were in January 2021, at least in 105/150 major metropolitan areas.
The first series of cities are comprised of areas that have been experiencing a “tech boom,” where major technology companies are setting up shop locally. Many of these positions pay well, and frequently require high-income earners to relocate. Given property values in many of these areas, it’s unsurprising that demand for a “big” house would increase with the influx of “big” money.
First on this list is Provo, Utah, with the average “big” house selling for $1.4M, which is the same as the second city on our list: Denver Colorado.
The second series of cities is comprised of towns that have historically catered to the ultrawealthy. Given that the ultrawealthy is their niche, it makes sense that demand for “big” homes would increase as COVID-related pressures on the market ease up, and the wealthy are less restricted in how they move their money around.
First on this list is Bridgeport, Connecticut, with homes clocking in at $2.7M and Santa Barbara, California’s $8.2M homes. An unsurprising addition to this list is Miami, Florida where the luxury housing market never really took a hit; the median “big” home is currently sitting at $2.2M.
While non “big” homes are still selling like hotcakes, it is worth noting that the luxury market is bouncing back in a big way. As the economy stabilizes, we expect the market to continue growing.
At the Chernov Team we understand that knowledge is power, and knowledge of how various sectors of the housing market are performing is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.