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In June 2024, the average sales price of a home was $487,200, per theU.S.
The housing market has already priced out the average person looking to buy a home.
Right now, the only people who are truly benefiting from the real estate market are the wealthy.
Heres how theyre doing it, according to real estate experts.
Also see 21 places where rich people are buying the most real estate.
Its about seeking opportunity where others dont see it or cant afford it.
Take luxury homes as an example.
These are properties that go for, on average, $1 million or above.
All other properties saw a drop in sales during this period.
At the same time, all-cash offers have increased recently.
According toRedfin, 46% of homebuyers used cash to buy property in the first quarter of 2024.
This is feasible for the wealthy, not so much for the average buyer.
But They Also Seek Opportunities for Generational Wealth
Building true wealth can take decades or even generations.
A whopping $41.7 trillion of this total wealth was in real estate.
Unsurprisingly, baby boomers held the majority of the wealth as well, followed by Generation X.
They Invest In Self-Storage
For the wealthy, its not only about building wealth through residential properties.
Others go for alternative options that also have a long-term advantage.
One such option is self-storage.
Self-storage is a burgeoning asset class that provides tremendous benefits to investors, said Michael Margarella ofNext Play Investments.
Self-storage is widely considered recession-resistant because it is not drastically impacted by worsening economic conditions.
In fact, self-storage occupancy generally increases as folks move, downsize or are displaced.
Margarella added that self-storage units are also inflation-resistant.
This is because storage owners can increase rents to match inflation.
This lets individual investors diversify their portfolios and maximize their returns.
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