Part 6/15:
The Speculative Nature and Overbuilding in Luxury Markets
Melody critiques the overproduction of luxury properties, especially in California, Long Island, and other high-end markets, where vast quantities of multimillion-dollar homes sit unsold for extended periods. Surveys, like those from the University of Michigan, show sentiment among ultra-wealthy investors is declining, signaling that luxury assets are not as insulated as narratives suggest.
She links the downfall of these ultra-high-end markets to broader economic stress, including stock market downturns and credit market instability, which will eventually filter into all asset classes, including luxury housing.