The Wealthy not live in high end homes

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https://www.google.com/amp/s/www.forbes.com/sites/pamdanziger/2018/04/17/real-estate-market-is-hot-except-at-the-high-end-disruption-coming-in-the-luxury-home-market/amp/

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Best quote. The wealthy live below their means. Duh,
That’s why the are wealthy

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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”

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I think every SFR in the south bay is over $1m now :slight_smile:

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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.

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High end here is probably 4.5M+

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Agreed. 2M is now the entry point for SFH.

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Problem is that too many 4.5m buyers only buy a 2-2.5m house. I think there are 3 reasons for this change:

  1. Number of kids per wealthy household shrinks
  2. Both spouses working so no time for big house in far away locations
  3. Wealthy people work more hours for this generation
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Bagb,

Doing PhD or data science side project?

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No side project for me :watermelon: