Source: Fortune
Summary
Ryan Serhant, CEO of Ryan Serhant Real Estate, said high-net-worth individuals are diversifying their real estate portfolios by investing in secondary markets. He highlighted Huntsville, Ala., Central Ohio, and Charlotte as emerging hotspots due to data centers and job growth. Serhant noted that while traditional wealth hubs like New York and Florida remain popular, affordability and economic opportunities are driving movement. He also warned that New York’s high costs could lead to population loss. Data shows Ohio is becoming a key market for homebuyers and businesses.
Our Reading
The numbers tell one story.
Rich buyers are spreading out.
Secondary markets are getting attention.
Ohio and Alabama are rising.
Costs and jobs matter more than prestige.
Author: Evan Null
A warning sign for places like New York
Ryan Serhant noted that New York lost about 12,000 residents last year, calling it a warning sign. He argued that high costs and taxes can push even iconic cities to lose population. A four-bedroom apartment in SoHo recently rented for $75,000 a month, which Serhant said proves the city is too expensive. New York is among the least affordable markets in the U.S., even with zero mortgage rates. Serhant compared the situation to companies competing for workers, suggesting that high costs can drive talent and wealth away.
Where the data agrees with Serhant
Homebuyers are prioritizing affordability and steady employment. Ohio has emerged as a quiet winner in the housing market, with homes about 30% cheaper than on the coasts. Gen Z and millennials accounted for nearly 30% of all interstate movers, according to a StorageCafe analysis. Danielle Andrews, a realtor, said the Midwest is becoming aspirational for younger buyers. The cost of living in the Midwest is better aligned with local wages, allowing Gen Z to build wealth without high overhead.
Job growth in Ohio and beyond
Ohio is seeing significant job growth, with Intel building two chip factories outside Columbus for a $28 billion project. Amazon Web Services plans to invest more than $23 billion in the state through 2030. These investments are creating opportunities and attracting buyers. Andrews said the Midwest is no longer just affordable—it’s becoming a place where people can get ahead. The region’s lower costs and growing job market are reshaping how buyers think about where to live.
Rich buyers are looking beyond the usual suspects
While Florida, California, and New York remain popular, Serhant said wealthy clients are also seeking secondary homes in unexpected markets. He argued that the ultrawealthy are diversifying their real estate portfolios instead of settling in one place. This trend is not just limited to the ultra-rich—affordability is pulling a broader wave of buyers toward similar markets. Serhant said people are moving with their wallets, looking for places that offer both opportunity and cost efficiency.
The future of real estate is not just about location
Real estate is evolving as buyers prioritize more than just prestige. Serhant said wealth is multiplying, with buyers purchasing multiple homes across the country. He emphasized that people want ease of access to great cities without paying to be in the center. This shift is reshaping the market, with secondary cities gaining traction. As more buyers look for affordability and stability, traditional hotspots may not be the only places where wealth is concentrated.
