7 Cities Where the Wealthy Are Buying Real Estate

High-end home sales have rebounded and surged faster than mid-priced homes over the past two years. As upper-class wealth grows with the breakneck speed of the stock market, economy, and other investment avenues, real estate is naturally the next avenue to grow.

These seven cities offer luxury living in an environment that attracts droves of the country's affluent. Here's a closer look at the top markets where the wealthy are buying real estate.

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2021 marked the largest number of million-dollar home sales ever in Denver, with seven-figure home sales quadrupling from 2016 to year-end 2021. A longtime darling for the well-to-do, the Denver market is heating up once again.

With luxury homes aplenty, world-class ski resorts, and multitudes of high-end restaurants -- along with a solid economy and well-paying jobs -- it's no wonder home prices are as steep as the mountain it's nestled on.

ALSO READ: Is Now a Good Time to Buy a Home in Denver?

San Francisco has long been a hot spot for the wealthy as a major tech hub and home to huge corporations like Salesforce, Square, and Dropbox, among countless others. Neighborhoods like Pacific Heights have streets dubbed "billionaires row" to reflect the wealth and affluence these areas bring.

Today, the city is seeing upper-end real estate sales rise as people reenter the market. Previous residents who left during the pandemic and newcomers looking to get into the market on the dip are aiming for more bang for their buck. With more inventory than usual, the wealthy are able to look for more space and higher-end accommodations than otherwise would be available.

A recent report from Coldwell Banker found the individuals in the $1 million to $5 million net worth range were moving from New York and California to the somewhat "hidden gem" of Salt Lake City. More favorable taxes, increased space, better school systems, and more outdoor activities are just some of the benefits the city has to offer.

Whether in the city or its suburbs, the rich are making themselves comfortable in the area and enjoying the perks that come with Utah living -- sports, museums, national parks, skiing, movies, and more.

ALSO READ: It's Getting Easier to Buy an Expensive Home

Atlanta has long been on investors' and families' radars as one of the more affordable cities in which to rent and live. But it also has a budding luxury real estate scene that is attracting wealthy people from across the country. Atlanta is getting the new nickname "the Hollywood of the South," thanks to favorable tax laws incentivizing individuals in the entertainment business to move to Atlanta.

Thanks to these tax incentives, individuals with a net worth of $30 million or more increased 22% from 2014 to 2017. New demand for luxury real estate to serve this growing niche of buyers pushed the median home prices up 83% from 2014 to 2019 -- more than double the national average during this time.

In 2020, Jackson Hole hit a record $1.5 billion in real estate sales. A massive number, given that the small town's population is just over 10,000 people.

Large parcels of land, tons of outdoor activities, and huge homes large enough for everyone in the family to have their own space -- it's the quintessential description of ideal accommodation in today's pandemic world.

Jackson Hole gives the adventurist or naturalist ample room to explore while being able to retreat to luxury accommodations at the day's end. The tax-haven status also helps draw in the wealthy.

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Sarasota is rapidly growing as a top destination for the wealthy in Florida, with luxury homes and amenities in addition to a quieter, slower life than that of Southeast Florida.

The baby boomers are ready to retire and are finally pulling the trigger on retirement homes. What better place to spend those years than on the warm, sandy beaches of Florida, enjoying gentle waves and a cool sea breeze. It’s estimated around 5% of the 319,000 residents that call this area home have millionaire status, putting it above the high-end destination of Naples, Florida.

ALSO READ: The Best States to Retire, Based on What People Really Want

Billionaires and big businesses nationwide are moving to Texas in droves. Favorable taxes, lots of land, and a business-friendly environment make the state a no-brainer for CEOs and other corporate giants. In 2021, high-end home sales increased 20% year over year, and luxury dollar volume grew over 200%.

As of January 2021, the luxury real estate market had just 1.4 months of inventory -- a shockingly low number when compared to 8.2 months supply one year prior. The lure of expansive estates on Lake Travis, surrounded by beautiful foothills and a well-appointed town center, make Austin an easy transition from luxury living elsewhere.

ALSO READ: Wall Street is Muscling in on the Real Estate Market

With excess cash from investment portfolios, cryptocurrency gains, and a booming economy, the affluent have rolled earnings into real estate around the country. These seven cities have offered the wealthy a plush place to land, surrounded by people and other residences just like theirs.

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