Remote Work and Cryptocurrency Are Driving up Demand for Luxury Houses
Low interest rates, record-high inflation, and work bonuses are fueling a recent boom in luxury real estate as more professionals switch to remote work and invest in cryptocurrency. As residential sales nationwide reach historic gains, luxury homes in Manhattan are closing at prices above $10 million, while some exurban properties are also exceeding seven figures, according to Realtor.com.
Not only did the luxury market report major price increases throughout 2021, but median home prices also rose as a result of low inventory and high demand, particularly in markets with growing populations from remote work migration. As wealth creation drives a buying frenzy across the U.S., experts suggest that buyers in the near future may be transacting in cryptocurrency, particularly for luxury homes in high-end markets.
The Sotheby’s report quoted one Hudson Valley broker as saying that those who can be designated “good buyers” must be ready to pony up somewhere between $1.5 million to $2.5 million—more than double the previous range of $600,000 – $700,000.
Though the area did not experience the buying frenzy that was witnessed at the start of the pandemic in 2020, the Lower Hudson Valley continued to report historic gains in real estate transactions last year.