Wealthy homebuyers seeking out second homes are not looking in urban areas but rather in surrounding suburban neighborhoods.
As previously reported by FOX Business, wealthy homebuyers returned to the housing market with force in May as searches for million-dollar homes increased by 7.3 percent year over year.
While many have been set back financially throughout the coronavirus pandemic, wealthier individuals, who have generally been able to successfully work remotely, have continued their home searches as state economies began to reopen.
And they have largely been looking to the suburbs. The coronavirus pandemic has placed a greater premium on private property and space, sparking a migration from densely populated urban areas.
Here’s a look at the second-home markets that saw the largest spike in interest from luxury buyers, as compiled by Realtor.com:
The Hamptons, New York
The Hamptons, a popular retreat for Manhattan’s wealthiest individuals, saw the largest spike in luxury homebuyer demand in May – of 72 percent. That compares with 16 percent recorded in January.
However, interested parties may have a hard time finding available homes.
The area is so popular that local real estate agents told FOX Business inventory has dried up.
The Hamptons housing shortage has sent luxury buyers looking into suburban houses in another area of Long Island known as the Gold Coast. Activity has increased in towns such as Roslyn, Woodbury, Syosset and Oyster Bay.
Palm Springs, California
Riverside County, which is home to the popular resort city of Palm Springs, saw luxury homebuyer demand rise 34 percent year over year in May.
Palm Springs is located in the desert in California – about 100 miles from Los Angeles – and is surrounded by Coachella Valley.
Its proximity to L.A. rendered the town a popular safe haven for celebrities.
Fairfield County, Connecticut, home to the ritzy Greenwich area, saw luxury homebuyer demand increase 47 percent year over year last month – up from 23 percent in January.
Greenwich is another popular suburban retreat for Manhattanites. New York City has been the hardest hit metropolitan area in the U.S. by the domestic virus outbreak – which sparked an “insane” exodus of residents from the Big Apple.
Greenwich is the largest town on Connecticut’s Gold Coast and it is home to a number of hedge funds and financial firms.
The town was named among Bloomberg’s richest in 2020, placing 16th.
On the flip side, the areas that saw the biggest decline in interest among wealthy buyers were Honolulu, Key West, Florida, and Pebble Beach, California.