Why Rich Neighborhoods Seem So Lonely

Anybody Home? A mansion in Greenwich, Con. for sale at Sotheby’s Realty online

Im always amazed at how the richest neighborhoods are also among the most empty. If you walk down any side street along South Ocean Drive in Palm Beach, Fla., even at high season, the only people you see are landscapers and contractors. At night, whenever I drive by the posh, all-glass Richard Meier towers in Manhattan, all the lights seem to be off, except for one or two apartments. The last time I was in Aspen, I drove through two of the highest-priced neighborhoods and didnt see a soul.

An article in Londons Telegraph about Bishops Gate, where metal-magnate Lakshmi Mittal is selling a place for £40 million, says that a sizable proportion of the houses in The Bishops Avenue…appear to be empty and unloved. Windows are barred, drives are unswept and weeds are creeping through.

The question, of course, is why. I have three theories.

Todays rich are more itinerant that ever. They like to travel and are on the road or in the skies more often than any other generation of rich people.

They have a porfolio of homes. Forget the summer home. Todays superwealthy have four or five homes depending on the season or weekend.

Homes are for investing not living. During the real-estate bubble, the wealthy were buying up homes as investments not residences. That was especially true in top neighborhoods, where homes are expected to retain more of their value.

Is all this empty mansion space good or bad for society? Its bad if youre a rich person trying to get to know your neighbors, because chances are, youll never meet them. (Last week, a Palm Beacher called me to tell me she learned about her nieghbor for the first time by reading about her in Richistan). But its a net positive for the tax base, since all these wealthy property owners are paying local taxes without using many services.