Luxury Real Estate Becomes the New Safe Haven for America’s Ultra-Rich
With the stock market on a rollercoaster ride, recession warnings piling up, and interest rates still elevated, you might expect Americans to hold off on big-ticket purchases. But for the ultra-wealthy, there’s one thing they’re still snapping up, even amid the chaos: luxury real estate.
According to a new Wall Street Journal report, the number of U.S. homes sold for $10 million or more has surged in major markets since February.
In Palm Beach, Florida, the number of $10 million-plus home sales jumped 50% between February 1 and May 1 compared to a year earlier. In Aspen, Colorado — a luxury ski destination — sales climbed by 43.75%. Los Angeles County followed with a 29% increase, while Manhattan saw a 21% uptick.
For some, it’s a way to sidestep market volatility and preserve purchasing power.
“The chance of taking a hit in the stock market is a bit too high for the reward, especially when we consider inflation,” said applied mathematician-turned-entrepreneur Dan Herbatschek. “Real estate is safer, less volatile.”
When inflation rises, property values often follow, driven by the increased costs of materials, labor, and land. Rental income tends to rise as well, offering landlords a revenue stream that adjusts with inflation.
Herbatschek recently signed a contract to purchase a $12.25 million five-bedroom condo in New York City’s Upper East Side for his family. He’s also acquiring three investment properties priced between $2 million and $5.5 million.
Meanwhile, billionaire manufacturing executive David MacNeil has been expanding his footprint in Manalapan, Florida. In March, he signed a contract to buy a $55.5 million property next to a site he already owns — bringing his total real estate spending in Manalapan to $94 million over the past year.
“There’s really no bad time to buy great properties,” MacNeil remarked. “No one ever regretted buying the very best, whether it is a premium collector car or a piece of premium real estate. Scared money chases bargains, and smart money chases excellence.”
While real estate clearly appeals to the ultra-wealthy, that doesn’t mean stocks are off the table.
Take car dealership owner Todd Green, who recently bought a $17.8 million slopeside vacation home in Vail, Colorado. Despite the market’s ups and downs, he’s still heavily invested in stocks — and unfazed by short-term volatility.
“It’s like Warren Buffett always said: If you’re thinking about the stock market over a period of a day or a week, you shouldn’t be in it,” he remarked. “I don’t plan on ever selling my stocks, so this is a little blip on the radar.”
Buffett has long championed the power of long-term investing — especially through one strategy that doesn’t require stock-picking skills or market timing.
“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett famously stated.
This approach gives investors exposure to 500 of America’s largest companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active management.
Buffett’s belief in this strategy runs so deep, he’s built it into his own estate plan — directing that 90% of his wife’s inheritance will be invested in “a very low-cost S&P 500 index fund” after his passing.
By: Jing PanI Yahoo Finance I July 9, 2025