Households earning at least $500,000 per year represent a tiny but influential segment of Missouris housing market.
These ultra-high-income families have distinct homebuying patterns that set them apart.
Explore their purchasing trends from 2018 through 2023, including primary residence purchases, vacation-home, and investment-property activity.
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However, this elite cohort has expanded and prospered in recent years.
Unsurprisingly, the vast majority of these $500K+ households are homeowners.
Many also own multiple properties.
Demographically, they tend to be in mid-to-late career stages.
They are frequently married and in their 40s, 50s or early 60s, sometimes with older children.
Mid-sized cities like Columbia have a smaller share of affluent buyers typically top surgeons or administrators.
Many were upsizing leveraging their growing incomes to move from starter homes into larger luxury properties.
Pandemic Boom (2020-2021)
The COVID-19 pandemic dramatically altered homebuying dynamics.
High-income households seized the unique opportunities of this period.
Others who already owned substantial homes doubled down by purchasing vacation retreats or investment homes.
This rush of demand contributed to bidding wars even at the high end.
Post-Boom Resilience (2022-2023)
By 20222023 the landscape shifted again.
Yet, Missouris elite largely weathered this storm.
Moreover, the supply of luxury listings remained so tight that competition persisted.
Such properties typically range from the high six figures into the low seven figures in price.
Missouris major cities have seen a blossoming of high-end condo developments to cater to this group.
found a niche among affluent retirees and professionals seeking a lock-and-leave lifestyle.
Custom-Built Homes
New construction is another preference of high-income buyers.
Many $500K+ earners commissioned custom homes during the period, taking advantage of low financing in 202021.
Missouris homebuilders responded with more high-end offerings.
Notably, this boom has been driven by local buyers.
trading up within the metro.
Many such buyers are long-time local business people or professors with inherited wealth, rather than transplants.
They tend to favor secluded properties with land.
Agents at Lake of the Ozarks reported unprecedented demand in 20202021, with many homes receiving multiple offers.
The period saw a national surge in real estate investment activity that included individual investors and institutions alike.
During 20182019, some high-income Missourians began to acquire rental properties as the economy grew.
High earners who were not financially impacted by COVID looked to hard assets as a safe haven.
The attraction was twofold: diversification of assets and the strong post-2020 rent growth.
Even with the mortgage rate increases in 20222023, cash-rich investors continued buying.
In Missouri, 20082011 were years of steep price declines and very few transactions.
Wealthy households often adopted a wait-and-see approach on real estate.
The Market Recovery Period (2013-2017)
By the mid-2010s, the situation improved.
20132017 saw a broad housing market recovery and economic expansion.
Missouris high-income households grew in number as the economy added jobs and the stock market boomed.
However, the pace was moderate and linear compared to the rollercoaster of 20202023.
The tax environment pre-2018 was more favorable for wealthy homeowners in some ways.
Price Trajectories and Market Psychology
In 20082017, Missouri home values first fell then gradually climbed back.
By around 2016, many markets had just regained their pre-2008 price levels.
The pandemic-era appreciation was a big part of that jump.
Conclusion
From 2018 through 2023, Missouris highest-earning households have significantly shaped the states housing trends.
