Luxury Housing Market Keeps Climbing

Luxury homes have been reshaped by shifting money flows, thin inventory, & changing buyer tastes. Entry prices are rising fast. Regional gaps are wider than ever. The very top of the market now feels worlds apart from regular housing.

Quick Points

• Entry luxury now starts near $1.3M

• Top 1% requires $5.5M+

• Supply remains at record lows

• Affluent buyers lean on cash & stocks

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Price Floors Keep Rising

Luxury once started with a million-dollar tag. That line is gone. Today, buyers need at least $1.3 million to enter the top 10%. The top 5% sits at $2 million, while the ultraluxury crowd now begins at $5.5 million. Back in 2016, $1 million nearly bought a place in the top 5%. Now it barely registers.

• Entry point: $1.3M (vs. $797K in 2016)

• Top 5%: $2M threshold

• Top 1%: $5.5M+

• National median list: ~$430K

The gap has widened in less than a decade. Prices rose 63% since 2016, and the distance between luxury & standard housing keeps stretching.

Fuel Behind The Surge

A mix of forces drove this boom. Pandemic-era cheap money lit the spark. Wealthy buyers leaned on cash while mortgage rates soared. Inflation piled on pressure. And supply fell behind demand. Many high-net-worth individuals also shifted money from stocks into real estate, seeing homes as a safer bet.

• COVID-19 pushed demand sky-high

• Ultra-low rates sped appreciation

• Inflation added cost pressure

• Supply failed to keep up

• Cash deals shielded buyers from borrowing costs

• Stock run-ups & inheritances boosted liquidity

The end result: luxury markets never slowed while the middle tier strained under rate hikes.

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Wealth Gap On Display

Luxury housing has split away from the broader market. Million-dollar homes make up 13% of national listings. Affluent buyers—armed with cash & assets—continue to outpace middle-class buyers. That wealth concentration makes rate hikes less meaningful for the top tier.

• Luxury diverges from general market

• $1M+ homes = 13% of listings

• Heaviest in costly metros

• Rich buyers largely insulated from rates

This divide shows how housing is no longer one market but two very different realities.

Cities Tell The Story

The contrast across metros is striking. In Detroit, $1M lands a mansion with more rooms than most hotels. In San Jose, that same figure buys a simple bungalow. In Greenwich, sales prices shot up 74% since 2019, with almost no homes trading under $1M. The New York metro has roughly 12,000 homes above that line—one-third of its listings. Miami, meanwhile, leans into waterfront, branded projects, & wellness-focused layouts.

• Detroit: $1M = 32,000+ sq ft mansion

• San Jose: $1M = 1,200 sq ft bungalow

• Greenwich: Median $3.25M, listings at record lows

• NYC Metro: $2.88M entry for top 10%

• Miami: Demand for waterfront & branded residences

These splits show how geography defines luxury more than any national average ever could.

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What Buyers Want

Tastes are shifting. Greenwich buyers now prefer strong construction & homes that feel lived-in, not oversized shells. Modern farmhouses with pitched metal roofs & bright facades are in demand. Younger buyers seek homes that feel distinct from older styles. Miami buyers want water views, wellness design, & branded developments. Across regions, the focus is clear: quality, stability, & security.

• Greenwich: “Homey” layouts over flashy builds

• Popular: modern farmhouse with bright exteriors

• Younger buyers: fresh, non-traditional styles

• Miami: indoor-outdoor focus & branded projects

• Common thread: life quality & security

Luxury buyers may differ by region, but they’re united in chasing homes that feel built to last.

Scarcity Keeps Grip Tight

Listings keep dropping. Greenwich has fewer active listings this year than ever recorded for each week. Nationwide, the same trend holds. Thin supply props up pricing, no matter what happens with mortgage rates.

• Greenwich: 124 listings vs. ~550 typical

• Record lows each week this year

• Nationally: supply trails far below averages

This scarcity is the final piece keeping luxury values sky-high. Until inventory grows, prices are unlikely to back down.

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