Where Billionaires Are Snapping Up Homes In 2024 — Hint, No Fear Of Climate Disasters

While most Americans fret over rising sea levels and wildfire risks, the ultra-wealthy are snatching up prime coastal real estate like there’s no tomorrow. 

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This June, a mystery buyer shelled out $210 million for a Malibu estate, setting a new California record. The seller was James Jannard, founder of Oakley sunglasses. Just down the beach, Laurene Powell Jobs dropped $94 million on an oceanfront property, adding to her growing Malibu empire.

From Malibu to Miami, Palm Beach to the Hamptons, the luxury market is booming while the rest of U.S. real estate stumbles.

So are billionaires just bad at reading climate reports?

Not quite, says Hannah Jones, senior economist at Realtor.com. “Homes in coastal areas, such as Palm Beach, are at risk of property damage due to climate-related events, which may deter some buyers. However, ultraluxury home shoppers continue to flock to these areas.”

Take Palm Beach, where hurricanes are a regular part of life. “The new FEMA regulations and the requirements of insurance providers have really encouraged or mandated that developers and custom builders reach certain standards in terms of wind and flood protection," Margit Brandt, a team member with Premier Estate Properties, in Palm Beach, was quoted in the report.

In Malibu, where wildfires are an ever-present threat, some ultra-luxury homes come with their own firefighting teams. “There are companies you can hire that will monitor your home and, in the event of a wildfire, will come to the property to defend it," said Sandro Dazzan, managing partner at The Agency Malibu. 

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But it’s not just about disaster-proofing. These enclaves offer something money can’t buy. Exclusivity.

"Ultrawealthy buyers are flocking to Malibu because of our beautiful rural environment and the incredible Santa Monica Mountain range that spans the entire city," Dazzan said. He recently sold a 10,527-square-foot beachfront mansion for $61 million, according to the report.

In New York, where 110 billionaires jostle for the best views of Central Park, it’s all about instant gratification. "Triple-mint condition sells a luxury property today," John Antretter, a real estate broker said. "They don't want to have to bring in a designer and gut renovate an apartment. The best way to sell a top-of-the-line property in today's market is to make sure everything is perfect, new quality painting, refinished or replaced flooring, and staging."

While most Americans grapple with mortgage rates just below 7%, the ultra-wealthy play by different rules. Many leverage their massive stock portfolios for low-interest loans or simply pay cash.

"Rather than only using standard mortgages, many Palm Beach buyers will seek a loan from their bank secured by their equity portfolio within the bank," Brandt said to Realtor. "The interest rates on these tools tend to be very competitive since the loan is often secured by sizable equity positions in relatively liquid assets."

As climate change reshapes coastlines and fuels extreme weather, it’s clear that for America’s billionaires, the view is still worth the risk. 

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