Luxury Home Market Trends Reveal Divergence Across U.S. Regions
Understanding the Diverging Luxury Housing Market in the U.S.
The luxury housing market in the United States has shown signs of stabilization as of December 2025, yet stark differences exist across local markets. According to the latest report by Realtor.com, the entry point for luxury homes, defined as those in the 90th price percentile, has edged slightly down to $1.19 million, marking a modest year-over-year decrease of 0.6%. This decline is less significant compared to previous months, suggesting that luxury home prices may be reaching a near-term floor.
Regional Price Disparities
The gap between luxury properties and typical listings is notably varied from one metro area to another. While luxury homes nationally average three times the median listing price, this comparison can be polarizing at the local level. For instance, in Connecticut, luxury properties can be priced more than five times the median, emphasizing the pronounced divide between affluent neighborhoods and the broader housing market. Conversely, cities like Orlando, Florida, exhibit tighter connections between luxury and typical listings, ensuring that high-end housing is not entirely isolated from overall market trends.
Anthony Smith, a senior economist at Realtor.com, pointed out, "Significant price gaps between luxury homes and typical properties aren't always concerning. They often indicate segmented markets where the luxury sector operates with a different dynamic than the rest of the housing market. Even minor changes in the upper segment can lead to various shifts in pricing without affecting median home prices."
A Closer Look at Luxury Pricing
December 2025 National Luxury Overview
The report reveals pertinent statistics concerning luxury real estate pricing, highlighting the following metrics:
- - Luxury Threshold (90th Percentile): $1,192,866 (−0.6% YoY)
- - High-End Luxury Threshold (95th Percentile): $1,903,974 (−1.4% YoY)
- - Ultra Luxury Threshold (99th Percentile): $5,531,567 (+0.8% YoY)
- - Million-Dollar Listings Share: 12.0% (−0.8 percentage points YoY)
While the most expensive luxury markets continue to see price declines, certain areas show resilience. For example, Heber, Utah remains at the forefront as the priciest luxury market, with properties starting around $6.95 million, reflecting a robust increase of 5.8% year-over-year. However, significant drops were recorded in major Californian metros like Los Angeles and San Jose, where luxury property prices fell by 6% to 15% year-over-year.
| Rank | Area | 10% Most Expensive Listings Start at | YoY Change | Average Annual Million-Dollar Listings Count | Multiple to Local Median Listing Price |
|---|---|---|---|---|---|
| -- | -- | -------- | -- | ---------- | -------- |
| 1 | Heber, Utah | $6,945,000 | +5.8% | 867 | 4.6 |
| 2 | Key West-Key Largo, Fla. | $4,996,500 | -3.1% | 834 | 3.8 |
| 3 | Los Angeles-Long Beach, Calif. | $4,059,710 | -6.2% | 9,266 | 3.8 |
This reveals the distinct character of each market, where regional economic factors and buyer affinities highly influence sales dynamics.
Miami Rising
In a noteworthy shift, the Miami metro area has surpassed New York in total inventory of homes listed at over $1 million, marking a significant moment in luxury real estate trends. Factors contributing to this change include Miami's diverse buyer pool, which includes cash buyers, international purchasers, retirees, and second-home seekers. Consequently, this has fostered consistent listing activity across various market cycles. Notably, a substantial portion of demand in Miami—over 26%—originates from the New York metro, facilitated by drivers such as higher costs in New York, Florida’s tax advantages, lifestyle attributes, and the burgeoning presence of New York-centric finance and tech businesses relocating to South Florida.
Divergence in Luxury Market Dynamics
Nationally, while luxury properties are typically priced at approximately three times the median listing price, several metros demonstrate much wider chasms. For instance, Bridgeport in Connecticut sees luxury listings starting at $3,995,000, which marks an approximate 5.4 times multiplier from the local median price, whereas similar divides can be seen in Naples-Miami and Crestview.
On the other hand, cities like Orlando and Riverside maintain tighter correlations between luxury and median prices. In these areas, luxury listings only amount to about 2.1 to 2.3 times higher than the median price, attributed to newer constructions and expansive development trends.
Markets Closest to Median
| Rank | Area | 10% Most Expensive Listings Start at | Multiple to Local Median Listing Price | Median Days on Market 10% Most Expensive |
|---|---|---|---|---|
| -- | -- | -------- | -------- | --------- |
| 1 | Orlando-Kissimmee | $889,260 | 2.1 | 93 |
| 2 | Riverside | $1,278,288 | 2.2 | 71 |
| 3 | Charlotte | $922,626 | 2.2 | 82 |
Conclusion
The luxury housing market across the U.S. illustrates significant disparities based on locality, with vital implications for buyers, sellers, and investors alike. The varied dynamics, influenced by economic, social, and environmental factors, necessitate a nuanced understanding of each market. As trends evolve, staying informed about regional distinctions will be critical for anyone navigating the luxury real estate sector in the years to come.
Topics Consumer Products & Retail）
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