Sept 2024 Luxury Real Estate Report
Explore the latest trends in the U.S. luxury real estate market with our newest report. Discover key insights into regional market dynamics, significant shifts in property values, and the new areas entering the luxury and uber-luxury thresholds. Essential reading for investors and professionals navigating the complexities of high-end real estate.
September 2024 Luxury Real Estate Market Report: Key Trends and Regional Insights
As we transition into the later months of 2024, the U.S. luxury real estate market remains highly regionalized, with marked growth in specific areas and notable declines in others. This report provides luxury real estate professionals with fresh insights into the current market dynamics, highlighting new emerging trends, growth hotspots, and evolving buyer preferences.
Regional Highlights
West Coast
The latest data reaffirms the ongoing shifts in California’s luxury real estate market, but with a few additional nuances.
•Northern California: The San Francisco Bay Area continues to experience declines, with several counties showing year-over-year (YoY) drops up to -10%, largely due to high living costs and ongoing migration out of dense urban centers. The tech industry’s volatility also contributes to this trend, with buyers prioritizing affordability and space.
•Southern California: Southern California shows mixed performance, as Los Angeles County remains relatively stable, but Orange County has started to experience slight declines. Santa Clara County also emerges as an area facing headwinds, reflecting similar economic pressures.
•Oregon and Washington: Oregon’s Portland metro area continues to struggle due to economic challenges and demographic shifts, though this effect is somewhat tempered compared to earlier in the year. Meanwhile, Washington’s King County showcases strong YoY growth of up to 10%, driven by the tech boom and the area’s continued appeal to affluent buyers.
Northeast
The luxury real estate market in the Northeast remains one of the strongest regions in the country.
•Robust Growth: Property values continue to rise in the Northeast Corridor, particularly in New York, New Jersey, and Massachusetts. Suburban regions, such as Westchester County (NY) and Bergen County (NJ), maintain their allure due to their proximity to urban centers and the desirable quality of life they offer.
•Emerging Growth in New York: Interestingly, Rensselaer County (NY) and parts of New Jersey are showing accelerated growth, making them new hotspots in the luxury segment.
Southeast
•Florida: The Florida luxury market shows mixed results, with Miami-Dade and Palm Beach counties continuing to perform well, fueled by international interest and favorable tax laws. However, the broader Florida market is experiencing slower growth due to concerns around climate change and economic volatility.
•Georgia: Metro Atlanta continues to show strength, supported by its vibrant economy and cultural attractions. However, rural areas of Georgia are still lagging behind, widening the gap between urban and rural luxury markets.
Mountain States
The Mountain States region continues to shine as a growing destination for luxury buyers, particularly those seeking expansive properties and outdoor lifestyles.
•Colorado, Utah, and Idaho: These states remain popular among luxury buyers, with Aspen (CO), Park City (UT), and Sun Valley (ID) standing out as some of the top-performing markets. These areas benefit from a surge in remote work and the increasing desire for properties with access to nature and recreational activities. Aspen is still seeing YoY growth of up to 10%, driven by consistent interest from high-net-worth individuals.
Texas
Texas presents a more complicated picture in September 2024.
•Urban Market Declines: The Houston luxury market is still struggling, primarily due to economic challenges associated with the oil industry and high property taxes. Other metros, such as San Antonio and Dallas, are seeing modest growth, but not enough to offset the broader market decline.
•Austin: As a tech hub, Austin continues to attract luxury buyers, although the pace of growth has slowed compared to earlier in the year. This market remains resilient despite broader regional challenges.
Alaska and Hawaii
•Alaska: Anchorage continues to struggle with declining property values, largely due to its dependence on the oil sector. The luxury market in Alaska shows little sign of recovery at this stage.
•Hawaii: The Hawaiian luxury market is performing inconsistently. While Honolulu continues to show positive growth, other areas are seeing declines due to Hawaii’s reliance on tourism and recent natural disasters, which have dampened buyer confidence.
Midwest Stability
The Midwest remains a reliable and stable region for luxury investors.
•Consistency in Performance: While the Midwest doesn’t experience the dramatic highs and lows of the coastal markets, it continues to deliver stable returns for investors. Areas such as Minnesota and Michigan are gaining attention for their consistent, reliable performance in the luxury segment. These markets offer less volatility but dependable growth, making them appealing to risk-averse investors.
Emerging Trends
Remote Work and Lifestyle Preferences
The trend toward remote work continues to shape the luxury real estate market. Buyers are increasingly prioritizing properties that offer a high quality of life in less populated, scenic areas. States like Colorado, Idaho, and Utah continue to benefit from this trend, as buyers seek out properties that provide both space and access to nature.
New Luxury Market Hotspots
While traditional luxury markets like New York and California still attract significant interest, emerging markets are gaining traction. For example, areas such as Blaine County, ID, and Wilson, WY are drawing affluent buyers looking for unique living experiences. These regions offer exclusivity and are gaining a reputation as the next generation of luxury hotspots.
Market Outlook
The luxury real estate market as of September 2024 continues to be marked by diverse regional performance. Strong growth in the Northeast, Mountain States, and parts of Florida and Texas offers abundant opportunities, while markets like Northern California, Oregon, and Alaska face headwinds. Success in the luxury real estate sector will require staying agile, leveraging emerging trends, and keeping a close eye on shifting buyer preferences. Adaptation will be key in navigating the varied market landscape, as regional nuances and economic factors will continue to influence luxury property demand well into 2025.
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Year over Year National Luxury Real Estate Report Map:
Here are the recent Luxury Real Estate Report numbers for the data hounds:
Luxe Report Data 9-2024
Methodology for RE Luxe Leaders Luxury Real Estate Report
The data used in the report is focused on the top one-third of markets in the United States, and is collected on a monthly basis. The data is used to identify trends in luxury real estate at the area level, rather than focusing on individual properties. The report aims to provide insight into luxury real estate trends across the country, by analyzing data from the most affluent and desirable markets in the United States.
We divide and define the US National Luxe Real Estate into three categories for our Luxury Real Estate Report:
- Executive Class. Areas where properties currently average sold prices of $750,000 and higher.
- Luxe. Areas where properties currently average sold prices of two million dollars and higher.
- Ultra-Luxe. Areas where properties currently average sold prices of five million dollars and higher.
Luxury Real Estate Report: Parting Thoughts
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