Best quote. The wealthy live below their means. Duh,
That’s why the are wealthy
New generation of wealthy people don’t buy high end home even if it is very affordable. There’s an excess of high end homes.
There’s a generational shift, very bad for high end homes.
“Millionaires still live next door
Another indicator of trouble in the high-end housing market comes from data collected by the Federal Reserve Board SCF. The majority of the wealthiest Americans don’t live in a luxury home; far from it. Some 21% live in a home worth less than $250k, and nearly one-third live in one valued between $250k-$500k. Only 16% have a home worth $1m or more”
I think every SFR in the south bay is over $1m now
High end means big and exclusive, such as Saratoga, Menlo Park, Hillsborogh, atherton in BA.
$1m is not a good measure in BA since $1m house here is nowhere near “high end”.
Since BA home price is 5x national average, I think we should use $5m to define high end.
High end here is probably 4.5M+
Agreed. 2M is now the entry point for SFH.
Problem is that too many 4.5m buyers only buy a 2-2.5m house. I think there are 3 reasons for this change:
- Number of kids per wealthy household shrinks
- Both spouses working so no time for big house in far away locations
- Wealthy people work more hours for this generation
Doing PhD or data science side project?
No side project for me