The California luxury real estate market has undergone a significant transformation over the past decade, reshaping its dynamics and redefining what opulent living truly entails. Brendan Brown, a visionary luxury real estate agent with an illustrious career, has been at the forefront of this evolution, providing key insights into the market’s evolution and future trajectory.
Born and raised in Newport Beach, California, Brendan Brown‘s journey into the realm of luxury real estate began at the age of 18. Starting with property renovation and design, Brown swiftly moved to establish his own brokerage at 23, flourishing across both the East and West coasts of the United States. He possesses a distinctive talent for spotting hidden gems within the market, solidifying his position as a trailblazer in the industry.
In a recent interview, Brown delved into the shifts and dynamics in California’s luxury real estate market, particularly focusing on Los Angeles, Malibu, and Orange County. He highlights the trend of vertical living in Los Angeles, inspired by New York City’s architectural direction, catering to those seeking a ‘lock and leave’ lifestyle.
These factors have brought a groundbreaking rise in interest within the luxury real estate market in California, specifically Orange County. Brendan further describes this by stating “right now we’re seeing record breaking numbers, and an influx of LA and NYC agents and brokers trying to get into OC.” He reveals that the market has become increasingly more popular as “they all came after the pandemic, and are making it more competitive than ever.”
Another appeal interesting new buyers in the market is the debate of waterfront versus ocean-view properties in Malibu. Brown notes, “The main shift I have seen is from people wanting to be waterfront versus ocean view. You get more space, much more privacy and security not being directly on the water.”
Brendan explains how this phenomenon may not always be in the interest of his clients. Recently, Brendan has been tied with the Duke and Duchess of Sussex, Megan and Harry. He describes how these types of properties may not be suitable for high profile clients as “they would be swarmed and unable to leave their house, whereas the larger lots above have acres, gates, guard houses, and privacy.”
International buyers continue to play a vital role in shaping the California luxury real estate market, particularly in Los Angeles and Malibu. The appeal of hotel-branded properties and $50 million penthouses has attracted a global audience, contributing to the market’s growth and transformation.
Brown shares insights into this influence, stating, “It’s the international buyers that have been and I think will continue to be the buyers of the $50 million dollar penthouses in the new buildings, as well as the hotel-branded properties.”
The narrative of privacy-centric purchases has gained traction among high-profile clients. Luxury real estate developers and brokers are aligning with this trend by integrating wellness amenities and prioritizing lifestyle enhancements. From infrared saunas to indoor pools, these features appeal to the discerning tastes of affluent clientele seeking a balance between opulence and well-being.
“Malibu has always kind of had that importance of lifestyle and home being all in one, and Orange County was where most people flocked to post-pandemic,” Brown stated, “In each instance it’s making the markets hotter, because the homes that people can have the most enjoyment out of and are the most luxurious, that is what is selling.”
Brown highlighted emerging trends in luxury real estate purchasing habits, emphasizing the significant appeal of luxury properties priced at $15 million and above, particularly among the ongoing interest rate crisis. Notably, spec homes are experiencing a slower market movement compared to higher-priced properties.
He also touches on the impact of Mansion Tax and how it has affected the market, stating, “people are really taking advantage of the interest rate crisis if they have money, and if they don’t, they are being priced out of the market.”
Looking ahead, Brendan Brown envisions a robust luxury real estate market in California’s prime locations. As interest rates adjust, he predicts a surge in demand and heightened competition due to constrained inventory. Mega-estates in Malibu, expansive properties in Orange County, and the growth of Pacific Palisades and Brentwood are areas to watch, each promising a unique blend of opulence and lifestyle.
