Wealthy buyers snap up neighboring properties to build private compounds
Luxury buyers are combining homes and vacant lots for more privacy, security and space, driving up demand – and premiums – for adjoining properties.
Wealthy buyers are assembling private compounds by purchasing neighboring homes and vacant lots, a trend called "landmaxxing," Coldwell Banker said.
U.S. luxury-property searches doubled during the first five months of 2026 compared with the same period last year, while searches for buildable land increased 97%.
Miami agent Danny Hertzberg of Coldwell Banker Realty said, "This is more sought-after than the 40,000-square-foot house. For some people, it is privacy and security. For others, it is a hedge against inflation."
Buyers are combining parcels to gain privacy, security, water frontage, and space for guesthouses, staff housing, gyms, spas, gardens, and sports courts. Some are also purchasing nearby land to preserve views or prevent future development.
Limited availability can lead buyers to pay premiums for adjoining properties that would be difficult to assemble again. January through May, luxury single-family sales volume rose 2.8%, and the median sale price increased by 4.7% to $1.83 million.
High-profile buyers have spent hundreds of millions of dollars creating compounds in Palm Beach, Miami, Malibu, and other affluent markets.
Source: Wall Street Journal (07/13/26) Solomont, E.B.
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