The luxury condo craze is a familiar concept, but what’s not talked about as much is the growing market for luxury rentals of the $25,000-per-month-and-up caliber.
During the first quarter of 2015, there were 82 rentals listed for over $50,000 a month on StreetEasy, more than triple what you could find in the first quarter of 2008, Bloomberg News reported. Rentals over $25,000 made up almost 1 percent of listing inventory on the site.
Real estate agents and wealth managers say that the trend is related to the luxury condo boom, but is also a sign of the shifting preferences of the global elite, who might want a luxurious home without the commitment. When you reach a certain level, securing a home as an asset is not necessarily a concern
Furthermore, some who think New York City property values have reached their peak might find it prudent to rent rather than buy.
“There’s an antiquated mentality that a primary residence has to be an investment property. That’s changing,” said Thorne Perkin, president of Papamarkou Wellner Asset Management. [Bloomberg News] — Tess Hofmann