Wealthy Americans Dream of Home Overseas

Strength of the U.S. dollar and rising costs of living have US affluent buyers looking abroad for their dream home

On Dec 7, 2022

Whether it is the desire for warmer weather, better prices or experiences around the world, wealthy US buyers want to move abroad. According to a recent survey released by Madison-based Coldwell Banker Real Estate LLC and the Coldwell Banker Global Luxury® program, the dream is alive and well for wealthy buyers looking for opportunities internationally, driven by the strength of the US dollar as the cost of living and home prices continue to rise domestically.

The survey found that nearly half of Americans surveyed want to invest their wealth for a better way of life. In fact, 40% of consumers say their desire to purchase a home in their dream location was due to the higher quality of living offered or because of the investment opportunities presented (41%).

The survey conducted by Censuswide, showcased in The Trend Report, highlights the consumer sentiments of over 2,000 U.S. high-net-worth consumers and key trends driving today’s luxury real estate market. Backed by additional insight from Coldwell Banker Global Luxury Property Specialists and data collected by the Institute for Luxury Home Marketing and Wealth-X, the report offers insights into where wealthy U.S. consumers are dreaming of moving to and the factors impacting those relocation purchases.

The Trend Report revealed that 67% of Americans surveyed already own residential real estate outside of the U.S. However, many are considering where they might expand their real estate portfolio for their next investment. The following regions are the top three locations buyers would consider when purchasing a property abroad:

1. Central America (23%)
2. North America – Canada and Mexico (20%)
3. Asia (20%)

From Central America, the top three countries where affluent buyers would purchase a property include: Belize, Costa Rica and Panama.

According to Wealth-X figures, the number of American high-net-worth individuals who purchased a property abroad in 2022 is projected to rise by 14% from 2021 and 29% from 2019. Here are three main reasons that more than a quarter of survey respondents are planning an international home purchase within the next year:

1. Rising cost of living
2. Surging home prices
3. Strong dollar relative to other global currencies – nearly a quarter of Americans

Noted in The Trend Report and backed by survey findings, property investment is a priority for the wealthy, no matter the market environment. Driven by opportunities to grow and build their wealth and higher quality of living, the survey found that affluent consumers desire to purchase homes in warm weather or suburbia with an abundant amount of space.

The following are the top five locations respondents would live if they could live anywhere:

1. Home in a location with warm weather / near the water (23%)
2. Suburban home with ample space (22%)
3. In the hustle and bustle of a major city with plenty of accessible amenities (19%)
4. Remote and off the beaten path with a large plot of land (19%)
5. A mountain town (16%)

According to Liz Gehringer, president of Coldwell Banker Affiliate Business and COO, Coldwell Banker Real Estate LLC, “The Trend Report highlights many of the emerging trends we see in the luxury market, one of those being the great appeal of properties abroad. Wealthy buyers are prioritizing their investments, looking at the economic state of their current location and factoring in their own desires. With those in mind, it’s no surprise that many luxury U.S. consumers continue to dream of their next purchase overseas.”

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