Ultra-rich Americans have started buying neighborhoods instead of mansions

Ultra-rich Americans have increasingly moved away from buying individual mansions and instead have begun purchasing entire neighborhoods and adjacent land to create private compounds.

publication The Wall Street Journal calls this process "landmaxxing," that is, the intentional and sometimes aggressive improvement of one's housing position to increase status.

As examples, experts cite Kenneth Griffin of Citadel LLC and Larry Ellison of Oracle. Griffin spent more than $450 million to build a 27-acre complex in Palm Beach, and Amazon founder Jeff Bezos invested more than $230 million in property on Indian Creek Island in Miami.

One of the pioneers of this phenomenon is considered to be Mark Zuckerberg. He bought 600 hectares on the Hawaiian island of Kauai. According to the press, on his land Zuckerberg is building an autonomous complex with its own bunker, water tanks and independent farms.

According to a Coldwell Banker report, interest in luxury properties in the U.S. has doubled in the first five months of this year compared to 2023. Buyers are looking to expand their properties. Applications for building land increased by 97%, and demand for mansions and private islands more than doubled.

Real estate agent Danny Hertzberg attributes this trend to a desire to diversify savings and protect against inflation. In addition, the purchase of adjacent land provides owners with privacy and security. Owners often use this land for staff, gardeners or for boat storage. Last year, GFL Environmental Inc. CEO Patrick Dovigi spent $48.5 million on a seaside home and adjacent land, where he is now building a spa, gym and paddle court.