SpaceX IPO Spurs Luxury Buying Plans as 1,000-Acre Ranches and Private Jets Beckon
Updated
Updated · CNBC · Jun 11
SpaceX IPO Spurs Luxury Buying Plans as 1,000-Acre Ranches and Private Jets Beckon
3 articles · Updated · CNBC · Jun 11
Summary
SpaceX employees are already mapping out post-IPO spending on luxury homes, Rolex watches and private jet trips, even though current and former staff will not be able to sell shares immediately.
California and Texas brokers say inquiries are rising near SpaceX hubs, from South Bay coastal homes to Austin-area lake condos and 1,000-acre ranches, with some buyers considering margin loans before lockups expire.
Luxury sellers expect the windfall to spread beyond housing: watch dealers say liquidity events often trigger trophy purchases such as Rolex, Patek Philippe and F.P. Journe timepieces.
Private jet firms also report SpaceX-related inquiries, with celebratory charters headed to Las Vegas, Miami, Cabo, Aspen and Yellowstone, though some wealth managers are already pushing clients to scale back.
The expected wealth surge could ripple through local luxury markets much as Facebook's 2012 IPO did, when home values near its headquarters jumped 21%.