The Rise of Nest Investing in Luxury Real Estate

Nest investing is a 2026 luxury real estate strategy where affluent buyers invest heavily in home renovation and custom design to enhance lifestyle and long-term value. With nearly 60% of Luxury Property Specialists reporting a shift toward "good bones" properties in desirable locations, this approach allows buyers in inventory-constrained markets like North County San Diego to create a bespoke estate rather than waiting for a turnkey listing.

Key Takeaways for 2026

• Strategic Spending: U.S. ultra-high-net-worth individuals are spending 18.5% more on home luxuries than personal goods.

• Inventory Reality: Turnkey properties in North County remain scarce, making the "customizable estate" a primary entry point.

• Equity Upside: Renovated luxury homes can command a 20% to 30% premium over non-renovated counterparts.

• Location Integrity: Prioritize irreplaceable locations in communities like Del Mar and Rancho Santa Fe.

There is a particular kind of clarity that comes from walking through a home with undeniable bones: good light, the right footprint, and a location that simply cannot be replicated. Being able to see past what a property is to imagine everything it could become is what separates informed luxury buyers from those still waiting for a perfect property that may never arrive.

In 2026, the luxury real estate conversation has shifted. This shift is not away from quality or craftsmanship, but toward a more strategic and personal definition of what the right home actually looks like.

When "Perfect" Is Not Available, Perspective Shifts

Let us be honest about the market reality in places like Del Mar, Rancho Santa Fe, and Encinitas right now. Turnkey inventory in the best locations has stayed stubbornly constrained. Buyers who entered 2025 with a clear picture of the move-in-ready estate they wanted have found that competition is fierce, options are limited, and the gap between expectation and availability is real.

According to the Coldwell Banker Global Luxury 2026 Trend Report, more than 30% of surveyed Luxury Property Specialists identified move-in-ready or new construction homes as the most sought-after property type among their clients, which is second only to properties in the best locations. Supply simply has not kept pace.

What does a sophisticated buyer do when the ideal turnkey property is not within reach at a price point that feels rational? That is precisely where the mindset shift becomes meaningful. In 2026, this means shifting from a "wait and see" approach to a "vision-first" acquisition strategy.

What Nest Investing Really Means for Luxury Buyers

Nest investing is the practice of directing significant financial resources into one's home through design, technology, wellness features, furnishings, and renovation. It has the dual purpose of enhancing daily quality of life and building long-term property value. It satisfies two distinct impulses at once: the deeply personal desire to create a sanctuary that reflects your aesthetic and lifestyle, and the rational, wealth-oriented motivation to invest where appreciation is both likely and controllable. In today's market, it is emerging as one of the most purposeful strategies available to affluent buyers.

This is not a fringe idea. According to Altrata's Wealth-X data featured in the 2026 Coldwell Banker Global Luxury Trend Report, home-related spending among U.S. individuals with a net worth above $5 million is projected to grow at 6.0%. This growth outpaces global averages and tracks competitively against other top luxury spending categories. The ultra-high-net-worth segment in the U.S. now spends 18.5% more on home luxuries than on personal goods. The home is not just where affluent consumers live; increasingly, it is where they choose to invest.

The pandemic deepened this orientation. When the home became the center of every aspect of life, including work, wellness, family, and entertainment, something shifted in how people valued their space. That shift has not reversed. If anything, it has matured into something more intentional. For 2026 buyers, this confirms that the home remains the most significant asset for both financial and emotional returns.

The Customizable Estate: A New Entry Point

The luxury counterpart to the traditional fixer-upper is what the Coldwell Banker 2026 Trend Report calls the "customizable estate." It is not a distressed property or a project born of compromise. It is a strategically acquired home that offers the right structure, the right setting, and the creative freedom to transform it into something that could not be purchased off the shelf.

The data tells a compelling story. Nearly 6 in 10 surveyed Luxury Property Specialists said they are seeing movement toward buyers favoring homes with "good bones" in desirable locations, even when renovation is required. Roughly 30% described that trend as increasing noticeably.

The financial logic is also clear. Nearly 32% of surveyed Luxury Property Specialists estimate that renovated or turnkey homes sell for 11% to 20% more than comparable properties requiring substantial updates. Another 25% put that gap at 21% to 30%. That is a meaningful premium, and it is one that a well-positioned renovation strategy could potentially capture.

“In my work with luxury clients throughout North County Coastal, I’ve found that approximately 75% of buyers who initially focused only on turnkey properties ultimately found their best match in a home requiring renovation. Much of this is driven by geography and opportunity — many of the most desirable coastal properties are older homes in premier locations that naturally require updating and modernization.

Today’s buyers are increasingly willing to take on a renovation, particularly when the timeline is manageable at approximately six months, because it gives them the freedom to personalize the design, finishes, and overall lifestyle experience to truly fit their vision. Rather than focusing solely on a perfectly updated home, we analyze the long-term potential of the property by looking closely at location, future value appreciation, and realistic renovation budgeting — not just the vision itself.

I’ve found that when clients understand the relationship between location, renovation potential, and future equity growth, many ultimately choose a property with renovation opportunity in order to create their ideal coastal retreat in a premier North County neighborhood.” 

How North County Fits This Trend Perfectly

In practice, no market illustrates this dynamic better than North County San Diego. Del Mar, Rancho Santa Fe, Olivenhain, and Encinitas all share a common characteristic: location value that is essentially irreplaceable. When a home sits on a ridge in Rancho Santa Fe with canyon views, or holds a walkable address in Del Mar Village, or carries a Solana Beach lot with room to reimagine the structure from the ground up, the land itself holds the equity anchor.

What I have always told my clients is this: you can renovate a kitchen, redesign a primary suite, add smart home technology, and transform every surface. What you cannot manufacture is proximity to the coast, a school district that families prioritize, or the particular sense of community that makes North County living what it is.

That is exactly why the customizable estate thesis makes sense here. When a beautifully located property in one of these communities needs work, it is frequently an entry point rather than a liability. In 2026, securing the location first is the ultimate luxury power move.

What to Look for Before You Commit to a Renovation Property

Not every unrenovated home is an opportunity. Knowing the difference requires a clear-eyed evaluation before you fall in love with the vision. Here is a practical framework worth applying:

1. Prioritize location above everything else. Ask yourself honestly if this address would command attention if the home were already transformed. The zip code and street-level desirability should be non-negotiable.

2. Assess structural integrity early. Cosmetic renovation is one category, but foundation, roof, drainage, and systems work is another entirely. A thorough pre-offer inspection protects your timeline and your budget.

3. Understand the local permit environment. In communities like Encinitas and Del Mar, renovation timelines can be affected by permitting complexity, particularly for additions, ADUs, or significant remodels. Build that timeline into your planning.

4. Get clear on your vision before you negotiate. Buyers who arrive at the offer stage with preliminary renovation concepts and budget ranges are in a stronger position to negotiate and move with confidence. Vision is leverage.

5. Work with an agent who knows renovation potential, not just listing prices. The gap between what a property is and what it could become is where value is created. That requires local knowledge, contractor relationships, and honest guidance on realistic outcomes.

The Bigger Question Worth Asking

The Coldwell Banker data surfaces something that resonates deeply with how I approach every client relationship. Today's affluent buyer is not simply price-conscious; they are quality-conscious. They are asking, even when they can comfortably afford the purchase, "Does this still make sense for me?"

That is a smart question. It is one that deserves a thoughtful answer rather than a rushed transaction.

The shift toward nest investing and customizable estates is not a concession to a difficult market. It is an evolution in how intelligent, values-driven buyers are choosing to deploy capital and create the lives they actually want. They are no longer choosing between a great investment and a beautiful home. They are building both deliberately, with intention, and with a long view.

When I think about what brings me to this work every day, it is exactly this: helping clients find the right entry point into the life they are building. Sometimes that is a turnkey estate on the first showing. Sometimes, more often than people expect in 2026, it is a home that is waiting for the right person to recognize what it could become.

If you are exploring what this kind of strategy could look like for your next move in North County, I would love to have that conversation. Please schedule a consultation and let us talk through what the market looks like right now and where your opportunity may be hiding.

Frequently Asked Questions

What is nest investing in real estate? Nest investing refers to the practice of directing substantial financial resources into one's home through renovation, custom design, technology, and wellness upgrades. It reflects a dual motivation of enhancing personal quality of life while building long-term property value. The concept has gained traction among affluent buyers, particularly in markets where move-in-ready inventory is limited.

Is buying a home that needs renovation a smart strategy for luxury buyers? In the right location and with a clear renovation vision, acquiring a property that requires updates can represent a meaningful opportunity. According to the Coldwell Banker Global Luxury 2026 Trend Report, nearly 57% of surveyed Luxury Property Specialists reported that buyers will pay 11% to 30% more for a renovated property compared to a comparable home requiring substantial work. This underscores the equity upside for buyers willing to invest in transformation.

What makes North County San Diego well-suited for the customizable estate strategy? Communities like Del Mar, Rancho Santa Fe, Encinitas, and Olivenhain carry location values that are structurally difficult to replicate. When a home in one of these areas needs renovation but holds an exceptional address, the land and location provide an equity foundation that supports the investment case for a thoughtful transformation.

How do I know if an unrenovated luxury home is an opportunity or a risk? The key differentiators are location quality, structural integrity, and clarity of vision. Homes in highly desirable areas with sound structure and strong permitting feasibility tend to present the most compelling cases for the customizable estate strategy. Working with an agent who understands renovation potential is essential to making that determination confidently.

How do I find luxury homes with renovation potential in North County? Finding these opportunities often requires looking beyond the active MLS listings. Partnering with a local luxury specialist who has access to off-market opportunities and deep roots in communities like Rancho Santa Fe can help you identify properties with "good bones" before they reach the general public.

About Barbara Chamizo

Barbara Chamizo is a bilingual luxury real estate professional with Coldwell Banker Realty, serving Del Mar, Rancho Santa Fe, Encinitas, Carlsbad, Solana Beach, and Olivenhain. 

Contact me today to begin your journey toward luxury coastal living.

Whether you’re looking to buy your dream home or just have questions, I am here to help.

Barbara Chamizo
DRE# 01855738
Phone: (619) 869-1477
Email: [email protected]