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For many of America’s most affluent people, having a second or third home is the norm. And according to a new report by Henley & Partners, their preferences lean towards beachfront paradises and scenic mountain escapes. The firm’s 2023 wealth report ranked the top 10 U.S. towns where centi-millionaires — those with a net worth of $100 million or more — own second homes. But the story goes beyond beachfront bliss. A growing number of millionaires seek escapes that cater to a broader range of interests, fueled by factors like the rise of remote work, a desire for alternative lifestyles, and the burgeoning tech industry in certain regions.
Data-Driven DestinationsData-Driven Destinations
Data from New World Wealth reveals a fascinating trend: the number of centi-millionaires in these towns fluctuates depending on the season. December 2022, coinciding with the peak holiday season, saw an exponential increase in centi-millionaire residents. This suggests a strong preference for vacation homeownership in these locales.
Here’s a closer look at the top 10 contenders, drawing from both Henley & Partners’ report and recent market data:
- Miami, Florida (average second-home price: $3.7 million): Taking the crown is Miami, which encompasses both the city and Miami Beach. The report states that over 800 centi-millionaires called Miami home in December 2022. This booming metropolis offers a vibrant cultural scene, international flair, and endless sunshine. Miami’s millionaire population has also grown significantly, with a 75% increase from 2012 to 2022, reaching 38,000 in December 2022, alongside 160 centi-millionaires and 12 billionaires.
- The Hamptons, New York: This iconic playground of the rich and famous comes in second. Henley & Partners’ report suggests a population of over 700 centi-millionaires during peak season, compared to just 25 permanent residents. The rise of hybrid work models is a contributing factor, as WFH Research indicates that hybrid workers tend to have higher earnings than those fully remote or in-person. The Hamptons‘ proximity to major financial centers like New York City makes it an ideal weekend escape for the ultra-wealthy.
- West Palm Beach, Florida (average second-home price: $2.8 million): Rounding out the top three is another Florida hotspot – West Palm Beach, encompassing Palm Beach Island and the mainland city. The report indicates a surge in centi-millionaires during December 2022, with over 400 residents compared to just 64 permanent residents. Beyond its idyllic beaches, West Palm Beach offers a sophisticated atmosphere, attracting celebrities like Tommy Hilfiger and Sylvester Stallone. According to CNBC, homes in the area range from $1.9 million to $89 million.
Beyond the Beach: Mountain Majesty and Unexpected GemsBeyond the Beach: Mountain Majesty and Unexpected Gems
While Florida dominates the top rankings, the list expands to include diverse locations catering to a broader range of interests:
- Napa, California (average second-home price: $4.3 million): Nestled in California’s wine country, Napa Valley offers a luxurious escape for wine enthusiasts. Second-home owners can enjoy vineyard tours, world-class wineries, and a relaxed atmosphere amidst stunning scenery.
- Aspen, Colorado (average second-home price: $3.9 million): A world-renowned ski destination, Aspen attracts millionaires seeking an active winter lifestyle. Beyond skiing, the town boasts a vibrant art scene, upscale shopping, and a charming mountain atmosphere.
- Santa Barbara & Montecito, California (average second-home price: Santa Barbara—$4.8 million, Montecito—$10.2 million): This idyllic Californian duo offers a combination of stunning beaches, Spanish colonial architecture, and a relaxed coastal vibe. Santa Barbara boasts a vibrant cultural scene, while Montecito, known for its celebrity residents, offers a secluded and luxurious retreat.
- San Diego, California (average second-home price: $3.2 million): California’s southern gem offers year-round sunshine, pristine beaches, and a laid-back atmosphere. With its world-famous zoo and amusement parks, San Diego caters to families while attracting retirees seeking an active lifestyle.
- Jackson Hole, Wyoming (average second-home price: $5.4 million): This breathtaking mountain town is a haven for outdoor enthusiasts. World-class skiing, stunning scenery, and access to Yellowstone National Park make it ideal for those seeking an adventure-filled escape.
- Carmel-by-the-Sea, California (average second-home price: $4.6 million): This charming coastal town offers a slower pace of life than other California hotspots. Carmel is known for its art galleries, fairytale cottages, and stunning beaches, perfect for those seeking a quiet retreat focused on art and culture.
- Boca Raton, Florida (average second-home price: $3.1 million): Situated near Miami, Boca Raton offers a refined alternative to the bustling metropolis. With its beautiful beaches, world-class golf courses, and a prestigious cultural scene, Boca Raton caters to millionaires seeking an active and sophisticated lifestyle.
Millionaires on the Move: Diversifying PreferencesMillionaires on the Move: Diversifying Preferences
The second-home market is no longer solely about beachfront estates. Millionaires today are a diverse group with a range of priorities. Some seek relaxation on pristine beaches, while others crave the thrill of mountain slopes or the energy of a burgeoning tech hub. Several key factors drive this diversification:
Alternative Lifestyles: The allure of a simpler, slower-paced life is attracting many millionaires. Places like Easton, Maryland (average second-home price: $1.8 million), with its historic charm on the Chesapeake Bay, or Edwards, Colorado (average second-home price: $2.1 million), nestled near Vail, offer a focus on family activities and a strong sense of community, appealing to those seeking a retreat from the hustle and bustle of city life.
- The Tech Boom: The tech industry’s rapid growth has minted a new generation of millionaires, and their preferences are shaping the second-home market. Cities like Austin, Texas, with its thriving music scene and entrepreneurial spirit, and Scottsdale, Arizona, with its proximity to outdoor recreation, cater to this demographic’s desire for a vibrant and stimulating environment.
A Look Ahead: The Future of Second HomesA Look Ahead: The Future of Second Homes
As remote work becomes increasingly normalized and the wealth landscape diversifies, the second-home market is poised for further transformation. Here are some potential trends to watch:
Focus on Wellness: With an emphasis on overall well-being gaining traction, we might see a rise in second homes in areas with robust healthcare infrastructure, access to nature, and a focus on healthy living.
- Rise of “Micro-Escapes”: The concept of multiple, strategically located second homes could gain popularity. Millionaires could have a pied-à-terre near their primary residence for quick getaways, complemented by a more remote vacation home for longer retreats.
- Importance of Infrastructure: Reliable and high-speed internet connectivity will become even more crucial as remote work grows. Second-home destinations with robust infrastructure will be more attractive to this segment of buyers.
- Sustainability Considerations: Environmental consciousness is increasingly vital to many millionaires. Sustainable building practices, energy efficiency, and proximity to nature will likely influence future second-home purchases.
Final ThoughtsFinal Thoughts
The landscape of second homes in the United States is significantly shifting. Millionaires seek properties catering to their diverse interests and lifestyles, driven by factors like remote work, alternative lifestyles, and the tech boom. As these trends evolve, the future of second homes promises to be more geographically diverse, focused on wellness, and built with an eye toward sustainability.