While the housing market spirals through unrelenting ups and downs amid an affordability crisis, supply chain disruptions, and inventory shortages, the high-end luxury market is booming, says Realtor.com. Demand for luxury homes surged throughout the pandemic as a result of remote work flexibility, a larger share of retiring baby boomers, and cheap mortgages.
The most expensive 1% of homes for sale saw a 16.6% year-over-year increase to a median $5.5 million price tag in January, and demand isn’t slowing. The hottest luxury market in 2022 is Kahului, Hawaii, where low-rise condos and single-family homes start around $1.6 million and the top 1% homes average a cool $23.9 million, especially for beachfront real estate.
There is oceanfront real estate—and then there is beachfront real estate on the tropical Hawaiian island of Maui. Kahului is considered the industrial hub of the island, home to the main airport as well as some commercial shopping areas. But just south of the small city lies some of the most exquisite real estate anywhere.
The pandemic gave the market a boost with more folks who could suddenly work remotely moving in as well as vacation buyers and retirees. Locals also got in on the action, fearing they would be locked out of the market if they didn’t move fast. Investors also scouted properties to use as vacation and full-time rentals.
For the 10 hottest luxury real estate markets in 2022 …