Are you one of those people who fantasize about winning the lottery so you can purchase the home of your dreams? Do you enter HGTV’s Dream Home Giveaway in hopes of living in luxury? Of course, the chances of either happening are slim. But if you do hit the jackpot, do you know what type of home five million dollars will get you? It all depends on where you want to live. In New York City, that kind of money will get you a condo, while in Miami’s Coconut Grove, it can get you a 4,200-square-foot home. In Chicago, five million dollars translates to a “condo in the sky,” while in Los Angeles, it means a nicely renovated, albeit older, home. And in case you wondered, to afford a multimillion-dollar home you should be making between $70,000 and $90,000 a month or about $840,000 to $1,080,000 annually. You also will need great credit and be able to make the one million dollar down payment, if you put down the standard 20%. And of course, there are always taxes and other expenses associated with owning an expensive home. While you’re dreaming, take a look at what five million dollars will buy.
Chicago
Listing price: $4.95 million
Square footage: 3,705 square feet
Number of bedrooms and bathrooms: 3 bed, 3.5 bath
Crooner Frank Sinatra sang about Chicago being “My Kind of Town” and for many, the Windy City truly is. The third largest city in the U.S., it has many of the same amenities as New York City, but a lower cost of living. According to PayScale, the cost of living in New York is 129% higher than the national average, whereas it’s only about 23% higher in Chicago. Culture Trip ranks it as one of the 12 best U.S. cities for culture. And of course, we can’t forget the city’s famous deep dish pizza.
Just blocks from the lakefront at State and Superior streets, this unit is one of 77 homes in One Chicago. The open floor plan living area has wide plank European oak wood floors and full height windows and custom-designed cabinetry. The bedroom is equipped with circadian lighting, which matches a person’s biological clock telling the body when it’s time to go to sleep or get up. Full bathrooms offer floor-to-ceiling slab porcelain and custom-built vanities with lit mirrors. Oversized showers include cantilevered benches, recessed storage niches and fog-free shave mirrors controlled by a programmable system. For dog owners, there’s a 3,000-square-foot dog run on the outdoor amenity deck with a covered area for pet owners, dog washes in every building and full grooming, walking, boarding and day care services.
“At this price point, buyers expect white glove 5-star services,” says listing agent Nancy Tassone, senior vice president at Jameson Sotheby’s International Realty in Chicago. Although COVID-19 combined with frigid temperatures in the winter made the idea of vertical living with shared spaces tough, Tassone says “the high-end market seems to be more fluid and many of our buyers at One Chicago are from out of state. Florida and California have sent us great buyers for in-town homes.”
Other shared amenities include a club and game room, on-site dry cleaner and more. In December 2022, the median listing home price in Chicago was $329,000, or $230 a square foot, according to realtor.com. The median home sold price was $285,000.
South Grove, FLA
Listing price: $4.99 million
Square footage: 4,287 square feet
Number of bedrooms and bathrooms: 5 bed, 6 bath
Known as “Miami’s original neighborhood,” Coconut Grove hugs the shoreline of Biscayne Bay and is home to an eclectic mix of homes, hotels and businesses. For nearly six decades it’s also played host to the nationally renowned Coconut Grove Art Festival.
If you’re looking for a new home in this established neighborhood, this is it. Located in South Grove, between US 1 and Main Highway, this modern mansion, which was built in 2022, sits on a 7,500 square-foot lot. The area has a median price range of $2.3 million, though some smaller, older homes are in the $1.5 million range, while others range as high as $12.9 million, according to realtor.com.
This two-story home features an open floor plan that connects the family room, kitchen and living room. The master is located on the upper level. The covered terrace and swimming pool is surrounded by lush landscaping for full privacy. Added bonus: it’s within easy walking distance to restaurants, schools and much more.
Listing agent Silvia Boschetti of Boschetti Realty Group in Coral Gables says, “Buyers are more conscious now than ever before. They know about materials, appliances and architects, which has caused developers to build better quality homes. Buyers are now looking to purchase homes with great quality finishes, including Italian kitchens, built-in closets, swimming pools and high-end appliances.”
Midtown East, New York
Listing price: $4.955 million
Square footage: 1,487 square feet
Number of bedrooms and bathrooms: 2 bed, 2 bath
This unit in Manhattan’s Midtown East in the iconic Plaza Hotel is known as the Vanderbilt Suite, so it’s a part of history as well. The area is home to landmarks like Grand Central Terminal train station and the Empire State Building and boasts Michelin-starred restaurants as well.
A corner unit, it offers views onto Fifth Avenue. A fully outfitted butler’s pantry and wet bar make this home perfect for entertaining.
The unit is an investment property since the owner can rent the suite through the hotel rental management program while not living there and has the option to use it for up to 120 days per year, at the owner’s discretion. Listing agent Douglas Russell, a broker with Brown Harris Stevens Residential Sales in New York City, says the current owner keeps the property in the rental pool and makes more than a five percent return on his investment.
“The owner generated a 2022 net profit of $328,435, or 7.1%, based on the selling price,” Russell said. “Or you can buy a one bedroom, one-and-a-half bath residence that is 1,212-square-feet in spectacular condition on the ninth floor facing Central Park with all windows for $4.995 million, or $4,000 a square foot.”
According to the listing, the Plaza Hotel had 804 rooms, but was converted into a hotel and a residential condo in 2007. There are 182 units in the Plaza Private Residences, which are in the same building as the hotel and residents have access to all of the hotel’s amenities.
In December 2022, the median listing home price in Midtown East was $1.1 million, trending up 13.6% year-over-year. The median listing home price per square foot was $1.3 thousand. The median home sold price was $1.2 million.
Los Angeles
Listing price: $5 million
Square footage: 4,908 square feet
Number of bedrooms and bathrooms: 3 bed, 5.5 bath
If you want to purchase a home in Los Angeles for five million dollars or more, consider this: The city recently approved what many are referring to as a “mansion tax,” which means the seller will have to pay a 4% tax on property sales above five million. The measure goes into effect in April. As a result, there’s a chance that cost might be passed along in the sales price.
What can you get for five million dollars in the City of Angels? Built in 1983, this home has been renovated with an all-new designer chef’s kitchen, equipped with Viking ovens. The white marble entry takes you into a spacious living room with library, bar and dining room. The primary suite includes an office, two baths, a fireplace, multiple closets, maple flooring and private terrace. In December 2022, the median listing home price in LA was $999,000, or $644 a square foot. The median sold home price was $905,000, according to realtor.com.
Listing agent Mark Rogo with the Rogo Group at Compass in Los Angeles says buyers have the power right now and are looking to get as much as they can. “There’s nothing magic about five million. They are just as serious in their negotiations as the $20 million or the $1 buyer. The difference is they are sensing their empowerment in a market that is tilted toward the buyers and they have the power.” He adds, “That leverage is less for the single-family residences than for the condo market, but it’s leveraged toward the buyers nonetheless.”