What the Knight Frank Wealth Report Means for Custom Builders

Luxury real estate is a top priority for the world’s wealthiest individuals. The 2025 Knight Frank Wealth Report makes it clear that, even amid ongoing economic uncertainty, high-net-worth individuals continue to prize real estate.

One standout data point is that 44% of private wealth advisors (family offices) say they plan to increase real estate allocations in the next 18 months, with 25% looking specifically to add residential properties to their portfolios.

This is actionable insight, because these are people actively managing wealth for the world’s richest individuals. These aren’t trendwatchers, but firms and individuals actually shaping decisions around what gets built, where, and why.

U.S. Leads in Global Wealth

The U.S. remains the global leader in wealth creation, with nearly 40% of the world’s ultra-wealthy living here. That’s more than double the share of China, the next closest country.

And in 2024, the U.S. saw the fastest growth of high-net-worth individuals across the globe, increasing by 5.2%.

Knight Frank defines high-net-worth individuals (HNWIs) as those with $1 million to $30 million in net worth, and ultra-high-net-worth individuals (UHNWIs) as those with $30 million or more.

“No other country is as successful at creating homegrown wealth,” the Wealth Report notes. “What happens in the U.S. shapes global markets.”

Among wealthy families already holding residential portfolios (averaging 4.7 homes, it should be noted), 25% plan to acquire another property in the next 18 months. Their top reasons? Family use and legacy, capital preservation, and portfolio diversification.

Luxury Miami waterfront estate | Wealth Report Custom Builder magazine

Where Wealth is Heading

For custom builders, knowing where wealth is landing can be important. The Wealth Report identifies three US markets as “supercharged” destinations attracting both domestic and global investment:

Miami
Palm Beach
Aspen

These aren’t just luxury maintains. The Wealth Report says they’re fast-moving destinations where wealth is landing at an increasing clip.

Beyond those, the report flags Dallas, Austin, and Orange County as growth opportunities, and calls out on additional opportunity to watch: Snowmass, Colorado.

Long overshadowed by Aspen, Snowmass has been outperforming over the past five years, the report says, with retail, restaurant and amenities significantly improving. Despite that, top properties still go for prices nearly 40% below their counterparts in Aspen, the report says.

Next-Gen Wealth Coming to the Fore

Beyond luxury markets, the Wealth Report also focuses on the next generation of wealthy buyers: those ages 18 to 35 and earning $500K to $1 million and beyond. While Boomers and Gen X still hold most of the decision-making power, nearly 60% are actively involving younger generations, according to the report, with nearly half saying the younger voice is already influencing investment strategy.

One clear signal: They’re looking for flexibility. They often live far from their office, often 45 miles or more, with the highest earners in this cohort living up to 125 miles from the office (if they have one). A striking 81% report that full remote work is viable for them.

That means their homes need to work harder, with multiple work zones, soundproofing, smart tech, private entrances or even detached offices and ADUs.

They’re also clear on what they value. Nearly half say they’d spend a windfall on travel and wellness over material goods. But, when pressed, they reveal that real estate remains their most desired asset, outpacing crypto and collectibles.

For builders, this means thinking about luxury beyond the traditional definition, offering wellness amenities and flexible living spaces and other lifestyle features.

Luxury home with solar panels | Custom Builder Wealth Report

Sustainability is Not Negotiable

The Wealth Report also confirms a growing emphasis on sustainability among UHNWIs when it comes to real estate, with 61% seeking strong energy efficiency ratings and 48% prioritizing on-site renewable power.

And while green certifications matter (cited by 53% of respondents), they’re also looking more broadly, with 75% expecting clear projections on what upgrades on these features may cost and 47% wanting actual energy data to understand building performance.

For custom builders, these Wealth Report trends signal a clear call to action: Design homes that marry flexibility, wellness, and sustainability with enduring luxury to meet the evolving expectations of next generation homeowners.