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Surprisingly, it’s not New York!
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The ultra-rich have a lot of money at their disposal, so it’s no surprise that they tend to invest heavily in real estate. It’s a safe bet, after all — real estate is one of the most reliable and profitable investments available. But where are the ultra-rich buying property? Here are the most expensive neighborhoods in the country, and surprisingly, none are in New York City.
Most expensive neighborhoods
Real estate investor and YouTube personality Graham Stephan states that with the skyrocketing prices of real estate, “it now takes 13 years to save for a down payment on a house in New York. But it’s still not the most expensive.” According to Zillow, out of the 12 most expensive neighborhoods in the U.S., nine are in Florida (six in Miami Beach, two in Naples, one in Jupiter) and three in Beverly Hills, California. Florida is now the choice of the ultra-rich.
Miami Beach
Six of the 12 most expensive neighborhoods are in Miami Beach specifically. This city’s booming tourism industry makes it an attractive option for those who want to invest in properties near beaches or other tourist attractions. And thanks to its vibrant nightlife scene and diverse array of entertainment options, Miami Beach also appeals to those who want to turn their investments into rental properties or vacation homes.
Star Island in Miami Beach is the most expensive neighborhood in the country. It offers extreme exclusivity, unobstructed bay views, private boat docks, and waterfront lots of at least 40,000 square feet each. In December 2019, the average home was $23.5 million, while three years later the average home in Star Island is now $40.2 million, a 71% increase. Star Island Miami Beach only has a few dozen homes, but the man-made island was home to celebrities such as Will Smith, Kanye West, and Shaquille O’Neal.
Ken Griffin, the hedge fund billionaire who runs Citadel, recently purchased five properties on the island for a combined $194 million. This pushed Star Island to become the priciest neighborhood. It’s four times more expensive than Beverly Hills Gateway in Beverly Hills, California and more than twice as expensive as the second-priciest neighborhood in the country — the Port Royal section of Naples, Florida.
According to the Zillow report, here are the 12 most expensive neighborhoods as of December 2022.
Real estate investments can be both lucrative and rewarding if done correctly — and that holds especially true if you’re among the ultra-rich set on investing your money wisely. From Miami Beach’s sun and sand to Los Angeles’ luxurious lifestyle offerings, these neighborhoods each offer unique advantages when it comes to real estate investments. These are just a few areas that could give you the chance to invest your money like an ultra-rich person!
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