October 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.
October 2024 Luxury Real Estate Market Report – Key Trends and Regional Insights
1. Regional Performance Divergence
West Coast: California continues to experience varying performance across its luxury markets. Northern California, particularly the San Francisco Bay Area, faces continued declines due to high living costs and a trend of outward migration. In contrast, certain areas in Southern California like Los Angeles maintain stability, while counties like Orange and Santa Clara show some weakening.
Mountain States: Regions such as Aspen, CO, and Big Sky, MT, maintain their appeal, driven by the demand for remote work-friendly luxury properties with access to outdoor activities. Montana’s luxury real estate market also stands out with notable gains, particularly in Bozeman, which saw a 10.11% YoY increase.
Northeast: The luxury market in New York, New Jersey, and Massachusetts remains robust, with suburban areas like Westchester County and Bergen County experiencing sustained demand. This growth is likely fueled by affluent buyers seeking properties with proximity to urban amenities while offering a suburban lifestyle.
2. Market Trends Based on Buyer Preferences
The appeal of suburban and exurban areas is growing, as evidenced by strong price increases in regions away from traditional urban cores. For instance, areas such as Bedford, MA (11.62% YoY) and Amherst, NH (9.60% YoY) are benefiting from a preference for suburban living.
High-net-worth buyers are showing an increasing interest in properties that offer sustainable features and wellness amenities. This shift aligns with lifestyle trends that prioritize well-being and environmental consciousness.
3. Economic Impact on Luxury Markets
Interest rates continue to impact buyer behavior. While affluent buyers are less sensitive to interest rates, the ongoing high rates are dampening overall market enthusiasm in certain regions.
Regions dependent on specific industries, such as tech and energy, are showing mixed results. For instance, the tech-dependent Bay Area and oil-reliant Texas markets like Houston continue to experience pressure as economic uncertainties persist.
4. Emerging Luxury Hotspots
New York and New Jersey: Counties such as Rensselaer, NY, and suburban New Jersey towns are emerging as new luxury real estate hotspots. These areas are benefiting from relative affordability compared to the traditional urban centers and appeal to those seeking suburban comfort without sacrificing connectivity to city amenities.
Southern States: Metro areas in the Southeast, particularly Atlanta, GA, and Palm Beach, FL, continue to show strength. Palm Beach’s growth is buoyed by favorable tax laws and international interest, while Atlanta benefits from a vibrant economy and lifestyle appeal.
Mountain States: Areas like Big Arm, MT, which saw a significant 21.35% YoY increase, are attracting luxury buyers who value natural beauty and exclusivity.
5. Impact of Geopolitical and Environmental Concerns
Florida: Climate change remains a concern for Florida’s luxury market, especially in regions susceptible to extreme weather events. This is likely impacting areas beyond Miami, with some buyers becoming more cautious about coastal properties.
Hawaii: Hawaii’s luxury market faces challenges tied to natural disasters and the state’s heavy reliance on tourism. Despite this, markets like Honolulu continue to see steady interest, though the broader market shows a mixed performance.
6. Alternative Luxury Investments
There’s a growing interest in alternative luxury real estate investments, such as co-living and eco-friendly developments. Some regions are also seeing a rise in boutique hotels and fractional ownership, especially in areas that attract seasonal visitors or second-home buyers, like ski resorts in Colorado and beach towns in Florida.
7. Long-Term Investment Value and Stability
Midwest Stability: The Midwest luxury markets, such as Michigan and Minnesota, continue to provide stable returns. These areas, with less volatility, appeal to conservative investors seeking steady, long-term growth. The three-year average YoY growth in places like Ann Arbor, MI, and Avon, OH, illustrates this stability.
Northeast: The Northeast remains a dependable region for luxury real estate, with some areas seeing three-year growth rates exceeding 20%. This long-term value makes it an attractive region for buyers looking to invest in established markets.
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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 10-2024
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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