How the approaching US elections are shaping the yacht market

October 9, 2024

Adele 45M Series by Hot Lab

Global events have long shaped market trends and behavior in the world of luxury yacht sales and charters.

As we approach the upcoming United States presidential election in November, with Donald J. Trump and Kamala Harris as the frontrunners, the superyacht industry is experiencing noticeable shifts, per a new white paper by yacht broker and charter service IYC.

“Election years are pivotal not just for politics but also for businesses, markets and individuals alike,” as IYC points out. “They often challenge the stability of various sectors, and the yachting market is no exception.

“The concerns linked to the economy and purchasing behavior during this period are amplified in the luxury yacht sector, where high-value transactions are the norm.”

As November approaches, the superyacht market has already begun to feel the impacts of this volatile period, with uncertainty and caution as the prevailing sentiments among both buyers and sellers, IYC said.

Current market
The global yacht market is facing adjustment and correction, with superyacht sales declining by 17 percent (Superyacht Times' State of Yachting 2024) last year.

Such an ebb after 2021 and 2022 can be partly attributed to the normalization following the post-pandemic boom, per IYC.

Currently, while overall sales demand has slowed, particularly in the smaller yacht segment (24-60 meters), the 60-meter-plus market has remained resilient.

“Our industry experts have observed a general sense of uncertainty among potential buyers, with many adopting a wait-and-see approach,” IYC said in the white paper.

“This global economic and political uncertainty can deter purchases and potential upgrades, with prospective and current owners taking a more cautious approach. “Many are in this holding pattern, awaiting results of what economic environment will develop before making significant purchases.”

Indeed, while elections contribute to the state of the market, various other factors are also at play, such as the broader geopolitical climate, inflation and rising interest rates – all contributing to the complex landscape.

Aside from these factors, the market is seemingly stabilizing in 2024.

IYC experts anticipate a return to pre-pandemic levels and, therefore, a stabilization rather than a decline.

“Our positive 2024 charter summer season confirms the continued appetite for yachting and the longer-term outlook for the charter industry,” IYC said.

Effects of election
Contrary to popular belief, historical data does not support the notion that election years negatively impact yacht sales, IYC points out.

However, uncertainty does influence buyer confidence and decision-making timelines.

Though not as severe as other global markets, the U.S. is experiencing a slight downturn.

According to the Superyacht Times, Monaco Yacht Show Report 2024, the U.S. remains the most significant player globally, with American owners accounting for 23.7 percent of superyachts over 40 meters.

As the U.S. remains a substantial part of yachting, any change felt will be a catalyst on a global level. This uncertainty within the market is causing buyers everywhere to consider investment, not just those that are U.S.-based.

“This downturn can primarily point to uncertainty about the financial future, with potential buyers preferring to wait for a more transparent economic outlook post-election,” IYC said.

“The election's influence on the stock market is particularly significant, as it directly affects buyers' financial confidence and willingness to invest in luxury assets, like superyachts.”

Strategies for stability
The contraction in 2024 yacht sales has been partly attributed to normalization after a three-year post-pandemic boom. Therefore, some signal this downturn and slowdown to be a more stable level of trading.

To navigate such a period of uncertainty, IYC recommends a proactive approach.

It is vital to closely monitor price reductions in the market and adjust listings accordingly to remain competitive.

For buyers, this period of caution may present unique opportunities to benefit from competitive pricing.

In contrast, sellers need to adjust the listing price and ensure to highlight unique features that set the yacht apart.

No matter the election result, it is hoped that the market will stabilize into 2025 after a few months once a new candidate is selected.

Trends to watch
Despite the slowdown, several exciting trends continue to develop in the yacht market, according to IYC.

One, in particular, is upsizing.

U.S. owners are gradually moving towards larger yachts, both in length and gross tonnage – albeit, currently, at a slower pace.

Aside from larger yachts, another segment generating more interest and momentum is the demand for expedition-style yachts and support vessels, reflecting a shift in how owners are using the yachts, per IYC.

The luxury yacht charter industry has also seen an uptick, as chartering is an excellent way for owners to offset costs during uncertain times.

For instance, with more than 160 yachts for charter in its fleet, IYC has had 402 contracts booked for 2024 year to date.

“With more demand for charter, this results in an influx of charter-friendly yachts designed to cater to both private and charter use,” IYC said in its white paper.

“Many first-time buyers post-pandemic are now looking to sell and return to chartering versus ownership.”

Please click or tap here to download the Monaco Yacht Show Market Report 2024 with Superyacht Times

Share your thoughts. Click here

How the approaching US elections are shaping the yacht market

6 days left! Register now for Luxury Outlook Summit New York

How accessible luxury brands can leverage new loyalty strategies without eroding brand equity

Why AI will be key for growing a luxury business in 2026

Luxury marketers and professionals can co-opt AI – or else

Why this Luxury Outlook Summit Jan. 14-15 is different from years past

The 4C’s for luxury marketers to watch out for in 2026

196 self-made billionaires drove wealth to record $15.8 trillion, up 13pc over 12 months

Rolls-Royce Americas CEO to headline Luxury Outlook Summit 2026 New York Jan. 14-15. Join us!

Global luxury spending to stay flat at $1.66 trillion in 2025 as shopper base shrinks

2026 will likely be another year of dislocation for fashion: report