Despite demand for entry-level and more affordable homes, the luxury housing market in 2020 and into this year has been particularly strong.

With affluent households, in general, faring better economically through the pandemic compared to low- to moderate-income households, those individuals had more money to spend but fewer places to spend it. Vacations were largely put on hold during the height of the pandemic, as well as activities like dining out, so many individuals invested in real estate instead.

Madison, New Jersey-based Coldwell Banker Real Estate LLC recently found, in the United States, the population of individuals with a net worth of $5 million or more increased by 17% from 2019 to 2021. Real estate wealth grew 77% from January to July 2021, compared to the same time period in 2019.

There was a 224.5% increase in the number of U.S. home sales priced above $1 million year over year as of May, according to Coldwell Banker.

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By Ashley Fahey, Real Estate Editor, The Business Journal