Where the Affluent Own PRIMARY RESIDENCES GLOBALLY

For the world’s affluent, the primary residence is both a commodity and a luxury they can enjoy with family and friends. HNW buyers want properties that provide security, safety, and comfort, sure, but they also consider the value of the investment – both personally and in the financial sense.

For those who have the funds to live anywhere they please, which cities offer this mix of both practicality and appeal? And how have those trends changed over time? We turned to Wealth-X to uncover the top places where HNW individuals establish their primary residencies.

U.S. REIGNS SUPREME

The world’s wealthy gravitate toward major hubs of business, finance, and culture – both globally and on a local scale. When looking at the globe as a whole, it is U.S. cities of this type that dominate the list – New York, Los Angeles, San Francisco, and Chicago, just to name a few.

What’s particularly interesting is that New York beats out every other international city — and by quite the landslide. The Big Apple has a whopping 45,849 more HNW individuals than the No. 2 spot, London, UK. It’s more than Nos. 8, 9, and 10 combined.

Surprisingly, it’s not just the city’s many amenities that are drawing in the wealthy. Compared to other international hotspots, it actually offers quite the bargain. According to data from the National Association of Realtors, NYC properties are priced around $17,000 per square meter.5 Hong Kong’s are $28,000 and London’s top $26,000. When you throw in the city’s position as a luxury mainstay and the status and prestige that comes with an NYC abode, it’s easy to see the appeal.

It’s also unique to see San Francisco and Los Angeles beat out so many global hubs, and by so much. Again, this may have something to do with the relative value offered by these California cities compared to more international spots. San Francisco buyers pay just $8,250 per square meter, while LA’s prices are nearly half that.

T OP 10 M ARKETS FOR PRIMARY - HOME OWNE RS

BIG NON-U.S. CITY STRONGHOLDS

If we filter out U.S. cities, the picture changes. Instead, European cities take the crown, accounting for five of the top 10 cities for HNW primary-home owners. London alone claims nearly than 53,000 individuals with a $5 million+ net worth.

It’s important to note that these lists also reflect a cultural bias. In many countries, owning a primary residence simply isn’t the norm – nor the goal – for most residents. Japan, Switzerland,6 and Germany,7 where over half their population are renters, are prime examples. If we were to call out the cities that simply have the most residents with a high net worth, the list would likely, again, look quite different from the other iterations seen above.

Still, it’s clear from the rankings that HNW buyers put much stock in large, bustling cities and urban metropolises, seeking access to both the business communities located in these areas, as well as the culture and wide array of amenities they have to offer.

Guangzhou, China Berlin, Germany Munich, Germany Hamburg, Germany

The Asian Comeback

Changes to COVID policies – or, more specifically, the easing of many restrictions associated with the pandemic – are trickling down, too.

Last year, only two Asian cities made the Wealth-X top 10 list. Now that borders have opened and travel bans have lifted in many locations across Asia, Singapore, and two Chinese cities – Beijing and Guangzhou – have re-emerged on the list of top 10 international spots for primary-home owners in 2022.

Singapore 8 is particularly interesting, as it rocketed to the top of the list this year, likely due to strong incomes, low labor shortages, and tight inventory levels as well as the high levels of foreign investment going into the country known as the “Gateway to the East.” As long as borders remain open, HNW individuals' interest in Beijing, Guangzhou, Shanghai, and other Chinese metropolises – will likely remain elevated for the foreseeable future.

RANKING CHANGES FOR PRIMARY - HOME OW N ERSHIP

Tried And True Investment Markets

One thing that’s notable from the 2022 list is that traditional centers of wealth – London and Paris – have not lost their luster for HNW individuals, who typically have a long-term view on real estate when it comes to wealth building. Typically, these are destinations with strong financial centers and cultural pursuits, where real estate tends to hold its value over the long haul.

With stock markets on uncertain footing, investors could prioritize real estate as a long-term approach to wealthbuilding. Inflation could also push the world’s wealthy towards real estate as they look for strategic ways to hedge their portfolios and preserve their wealth.

More Bang For Less Buck

Many of the global cities in the top 10 for primary-home ownership have seen home prices level off or even decline in recent months. London 9 home prices, for example, dipped by 3.2% below August 2022’s peak and Toronto10 home prices have sunk 9% since December 2021.

These price trends not only afford HNW buyers the opportunity to buy more house for less money, but they also help offset the rising costs that property ownership now comes with – largely due to increasing fuel, water, and electricity prices. (Japan’s TEPCO power company announced plans to raise electric prices by almost 30%.)11