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Palm Beach, Florida, Isn’t the Only Sunny Bolthole With Trophy Homes and Boldface Names—Here Are Five Alternatives

Follow the jet set in seeking out enticing opportunities in Maui, Cabo San Lucas and farther afield

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The British Virgin Islands has emerged as the favorite among the international jet set, many of whom are attracted by BVI’s absence of income, property, corporate and capital gains taxes.

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The British Virgin Islands has emerged as the favorite among the international jet set, many of whom are attracted by BVI’s absence of income, property, corporate and capital gains taxes.
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Palm Beach’s allure of warm winters, no state-income tax and, importantly, chances to hobnob with a who’s who of U.S. business titans are reliable draws for affluent folks in search of a sunny beach locale to call home. 

Located on a barrier island, the picturesque Florida town has a year-round population of nearly 10,000, and with the median home price hovering above $8 million combined with a cost of living that’s roughly double the Florida average, it can be tough finding the right, or any, kind of real estate opportunity. 

While dozens of billionaires and even more celebs call Palm Beach home, there are a handful of other sunny spots that offer their own distinctive charms and lifestyle advantages, often with less eye-popping price tags. 

Paradise Valley, Arizona

Few places anywhere are booming more than Arizona’s Maricopa County, which encompasses Phoenix and its toniest suburb, Paradise Valley—a spot nestled between Camelback and Mummy mountains.

“While the sunny, warm weather and taxes are generally attractive to home buyers, since the pandemic the luxury real estate market has skyrocketed,” said Wendy Walker, Scottsdale managing director for The Agency.

Surrounded on three sides by mountain ranges, “PV”—as many locals call it—boasts a plethora of properties with exceptional views, with some enjoying an elevated, hillside position, while others look out from the valley floor.

“Whereas Paradise Valley was mostly viewed as a second home-driven market for those based in densely populated areas like San Francisco, Seattle, Chicago, and L.A., it’s now viewed as a true primary residence option,” Ms. Walker said. 

A shrinking inventory in single-family residences has led to a rise in multi-unit residences, as well as a growing number of luxury resorts with five-star experiences, headlined by the newly opened Ritz-Carlton Paradise Valley, which is the centerpiece of a $2 billion, 122-acre luxury master-planned development.

“We’re landlocked—one acre lots and tear-down homes are trading in between $2 million to $3 million. We recently broke the local record, selling an acre lot with plans and permits for $3.5 million,” said agent Frank Aazami of Russ Lyon Sotheby’s International Realty. 

The  number of high-end homes under construction, to be delivered within the next 18 to 36 months, will expand buyers’ choices. “Flawless homes are still generating multiple offers and, in fact, selling over ask,” he says.

According to Walt Danley, founder and president of Walt Danley Christie’s International Real Estate, the final average price per square foot for Paradise Valley in 2022 looks like it will be in the $660 range, with a median home price of around $2.8 million.

Like Palm Beach, it has attracted a cohort of celebrity residents over the years, including Olympic swimmer Michael Phelps, rocker , and actress Emma Stone. 

“Paradise Valley is a destination because of its incredible climate, award winning golf courses, lower property taxes, booming jobs market, and easily accessible amenities dining and shopping,” Mr. Danley said. 

By the end of 2020, Mr. Danley said, 64,000 Californians migrated to Arizona to maintain their lifestyle with a preferred cost of living and lower taxes. 

“Pace of migration from California to the Phoenix area continued to pick up during 2021 and still remains strong today,” Mr. Danley said. “Paradise Valley has historically served as a winter getaway for the nation’s most affluent families, but in recent years it has become their primary residence.”

Cabo San Lucas, Mexico

Long a favored destination among Californians looking for a nearby escape, Cabo San Lucas has grown to attract home seekers from around the world. 

“Cabo has become the premier winter escape for the West Coast due to a combination of factors. We have one of the best climates on the planet for those seeking real estate in a warm, sunny place,” said Bernardo Mucino Koenig, managing partner at The Agency Los Cabos. Key selling points include the stunning beaches, Mexican flare and unique geographic identity at the southern tip of Baja. 

“Though we are a peninsula, economically and socially, we are an island. This provides the advantage of isolating Baja from many of the nation’s problems and drawbacks,” Mr. Mucino Koenig said. “Culturally, it provides a merger between old Mexico and contemporary California, a flavor well understood by U.S. travelers.” 

Cabo San Lucas is regularly billed as Mexico’s strongest real estate market. In recent years, growth and demand in the market “has been unprecedented,” according to research from . General consensus puts the makeup of home-buyers being more than three-quarters American, with California supplying roughly half of those buyers, followed by Texas.

“Los Cabos has always been a popular vacation destination dating back to the Golden Age of Hollywood when the likes of John Wayne and Lucille Ball used to fly down for weekend getaways and sport fishing excursions,” said Ian Gengos, owner of Berkshire Hathaway HomeServices Baja Real Estate.  “Over the years it has grown significantly to a global hot spot for all types of visitors.  

Palm Springs, California

Nestled in Southern California’s scenic Coachella Valley, the region’s most famous address, Palm Springs, has been enjoying a white-hot real estate market, with the kinds of bidding wars and outrageous prices more associated with Los Angeles’s toniest enclaves.

“Gated-community homes located in or around country clubs in Palm Springs are top priority,” said Jeff Kohl, director of architectural properties, Desert Communities, at The Agency, adding people are drawn by golf courses and pickleball courts. “Mid-century and the new classic, move-in modern architecture are also in high demand, which is seen at the renowned Desert Palisades gated community in Palm Springs.”

Long considered a rejuvenating getaway for stressed-out Angelenos, where unlimited pool time and modern architecture mingle with mountain vistas, active pursuits, and a never-ending cultural calendar, sun-drenched Palm Springs manages to feel like a resort-minded escape while doubling as a close-knit community. 

Neighbors—who include Hollywood elite and many former U.S. —come together over golf and tennis, while more than 100 trails meander through native canyons and snow-dusted peaks. Big city types find themselves satiated with Palm Springs’s lauded arts, dining, shopping and wellness offerings. 

The cut-throat housing market shows no signs of easing; things were heating up long before the  Covid-19 pandemic gave countless people a reason to flee their densely populated cities in search of safer, wide-open places like Palm Springs. The increased interest has depleted the supply of homes available for sale, driven up prices, and created a wildly competitive environment where buyers transact in cash, forgo standard home inspections and appraisals, and even pay the sellers’ closing costs to confirm the deal before a higher offer comes along. 

British Virgin Islands 

While the Caribbean is awash in luxury wintertime retreats, the British Virgin Islands has emerged as the favorite among the international jet set, many of whom are attracted by BVI’s absence of income, property, corporate and capital gains taxes. There are practically no taxes except for payroll taxes, stamp duty on real estate and import duty, making it a favored place to set up shop for those looking to run an active business. It also helps that the British Overseas Territory, which has more than 50 islands, is known for its beautiful beaches and world-class yachting spots.

“BVI enjoys a balmy, tropical climate all year round and is the perfect playground for sailors and water enthusiasts alike,” said Sylvia Moses, agent, Smiths Gore BVI Limited.

“There is a wide variety of residential properties on BVI’s real estate market that offer spectacular beachfront villas, a home with a personal dock or that signature property with all the modern conveniences,” she added.

BVI’s main hubs include Tortola, whose thriving financial center attracts active business professionals, and Virgin Gorda, which is renowned for its idyllic sailing and fishing.

The sparsely populated territory (population: 30,000) is famous for its exclusive luxury resorts, most notably Richard Branson’s Necker Island, and has one of the most prosperous economies in the region, fueled by myriad investors and offshore companies taking advantage of the low-tax status.

Expats seeking to purchase property in the BVI must apply for a Non-Belonger Land Holding License, and buyers pay a 10% deposit, which is held in escrow until the transaction completes. For those buying empty lots, the government requires owners to build within three to five years with a minimum expenditure of US$250,000.

Buyers pay stamp duty of between 4% to12% as well as legal fees. Sellers pay the 6%-8% real estate agent’s commission.

Maui, Hawaii

The “Valley Isle” is a year-round bucket-list destination because of its awe-inspiring natural beauty, pristine climate and array of active pursuits. Transplants are lured from all over North America, drawn by the opportunity to enjoy world-class golfing, swimming, hiking and surfing all year long. 

“In terms of location, Maui is just a short five-hour flight from the West Coast of the U.S., making it relatively easy to get to, and inexpensive compared to other tropical destinations,” Tyler Coons of Welcome Hawaii Properties said. “However, because we are an island in the middle of the Pacific, we enjoy an exclusivity that remains a rare find today. Unlike Palm Springs or Malibu, you can’t drive to Maui for the day or weekend. As a result, the island retains a magical and remote feeling.”

Mr. Coons cited wintertime joys such as regular 80-degree-Fahrenheit temperatures and the annual migration of humpback whales, who spend their winters in the warm waters around Maui. The allure has drawn a variety of celebrities and businesspeople to Maui, including
Oprah, Pat Benatar and Craig T. Nelson

“Of course, we have our share of billionaires on Maui,” Mr. Coons said. “However, the housing inventory here includes everything from studio vacation rental condominiums to opulent one-of-a-kind luxury estates.”

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