The Rising Trend of Celebrities Investing in the Real Estate Industry

Why High Profile People are Continuing to Invest in the Home-Selling Market Space

It’s no secret that there is plenty of opportunity for financial prosperity in the real estate industry, which is likely why many famous individuals are continuing to invest in the market. Whether they’re flipping homes or building them from scratch, celebrities are sweeping the real estate industry at an impressive rate and certainly getting a bang for their buck on their return on investment.

E! Television personality Giuliana Rancic and her husband Bill recently listed a home in the Gold Coast neighborhood of Chicago at a steep $6.8 million. The couple purchased the property nearly four years ago for $2.125 million and have now put the home back on the market for millions more than they originally paid after implementing stunning renovations to the 1886 Victorian-style mansion.

American actor and environmentalist Leonardo DiCaprio is also well known for his sleek real estate investments. In 2016, the A-list star sold his oceanfront Malibu property for an impressive $10.95 million, seven times the amount he originally purchased it for nearly twenty years prior. DiCaprio has also sold several of his other properties for significantly more than he initially paid.

America is also making celebrities out of savvy interior design and real estate gurus. Chip and Joanna Gaines started their “Fixer Upper” show on HGTV where they take average homes and turn them into beautiful, neighborhood-changing residences. The Gaines quickly became a household name as viewers across the country tuned into the hit TV show to watch the wholesome couple work their home renovation magic on houses that many Americans would find in their own communities.

So, what innovations and impressive talents are celebrities bringing to the home design and interior decorating game that are causing them to make bank on their properties? Or, is it a name game in that a home labeled as “Taylor Swift’s former residence” or “flipped by the Kardashians” already stands as competitive when it’s listed on the market.

Obviously, stars have the advantage of being in the limelight of the universe, so they can easily get in touch with the highest quality experts in almost any given industry for advice or help. It’s also likely that stars have the branding effect, in that - as I previously mentioned - a house previously owned by A-List Celebrity is likely to gain more market traction than a similar house owned by a John Doe.

While there are several reasons why famous folks are finding success in real estate, celebrities are continuing to keep the housing market on fire across the United States by providing families with beautiful homes to live in as well as gain themselves a hefty return on investment.

Photo of Giuliana and Bill Rancic's Gold Coast home.