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Rich people buy luxury real estate in 'power markets," where they flock to multi-million-dollar properties.
- Luxury real estate "power markets" are the places where rich people spend the most money, says $4 from Coldwell Banker.
- Rich people flock to power markets for the best in luxury real estate, lifestyle, and culture.
- Power markets in the US are places where the top 5% of home sales by price is the highest.
Location is paramount when money is no object, whether a home is steps from the beach, tucked in the mountains, or in the heart of a city.
The world's rich people spent $8 billion on luxury real estate in 2016, according to $4, and they flock to many of the same cities to buy property.
In $4 by Coldwell Banker, these places are called "power markets," where the "wealthiest and most powerful players" tend to own homes.
"Typically, these areas are destinations in their own right, offering high-net-worth individuals a range of lifestyle opportunities, cultural experiences, and educational opportunities," the report says.
The report defines power markets in the US as places where the top 5% of single-family home sales by price is highest. In the top 17 markets, the median list price for the top 5% of sales is at least $3.5 million.
Below, check out which cities are most popular among wealthy homebuyers. For each place, we've included the median list price for the top 5% of homes currently on the market, the highest sold price from 2017, and the median price per square foot for that market.
All data figures are for single-family homes and were provided by Coldwell Banker and The Institute for Luxury Home Marketing.