If you've ever found yourself thinking, "I'm all work and no play," you're not alone. When the housing bubble burst in 2007, property values were almost cut in half. However, even though houses were more affordable, the unemployment rate nearly doubled by 2011. It went from 4.9% to 9.2% in a little under two years according to the National Conference of State Legislature. We saw many homes put on the market and not move. We saw investment properties either being sold to the highest bidder or go under.
Since we know that the United States housing market is strong and moving, let's talk about the top three cities to purchase luxury homes as an investment in the U.S.
LAGUNA BEACH, CALIFORNIA
Laguna Beach is a small multi-cultural city found along the coast in Orange County. It is peppered with art galleries, coves and even caverns along its shore. Both residents and vacationers alike enjoy the beaches, tide pools, and the boardwalk. There is even an underwater park, coastal canyons and plenty of trails to walk. If you're into surfing, Aliso Beach is the spot for you. Laguna Beach is also a family-friendly destination and vacation spot. Ask a Laguna Beach Realtor how you can invest in a luxury home that will end up paying for itself if you decide to rent it out.
MIAMI, FLORIDA
Miami is home to beautiful beaches, amazing food, and million dollar homes. Probably in that order too. According to Luxury Defined, even though growth in Miami has slowed, a million dollar homes sell here regularly. We all know that Miami is an uber-popular vacation destination - this means that it is the perfect location for an investment property. Think Spring Break! Thousands of college students looking for an amazing house to rent for the week. This is another luxury investment with a high rate of return.
NEW YORK, NEW YORK
Breakfast at Tiffany's anyone? Property values in New York are finally reaching normalcy. During the Housing Bubble Burst, market prices were scattered all across the board causing bidding wars, and properties just weren't moving to be sold. New York has bounced back better than ever, and it is everyone's favorite destination! With the gorgeous and expansive Central Park, old brick homes, townhomes, and only minutes to beaches and family entertainment, making an investment in New York is a must for anyone interested in luxury and city living.
We've explored the West Coast and the East Coast, North and Southern cities and states. There are many more luxury cities to invest in, but these three have so much to offer, from elegance to culture, they have it all. If you don't plan on living in the homes, but would rather rent them out during peak seasons, they will end up paying for themselves sooner rather than later. Now is definitely the time to invest in luxury properties.
Luckily, here in the U.S., we're a nation of determined individuals and we've been able to bounce back from the housing crisis. Unfortunately, it's not the same in other parts of the world. For instance, Ireland has built only about 6,700 houses between 2011 and 2016, even though according to their census, the average household size has increased. Hopefully, they can learn from our success and failures and thrive again as well.
