End of Year 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.
Key Trends and Regional Insights
1. Regional Performance Divergence
West Coast: Diverging Trends
California’s luxury market remains a tale of two coasts. Smaller, sought-after areas like Dana Point (+10.71%) and Carmel-by-the-Sea (+0.89%) show strength, while traditionally affluent enclaves like Atherton (-1.22%) and Belvedere (-2.06%) are cooling. Volatility in the Bay Area persists, with limited recovery due to ongoing tech sector challenges. Southern California maintains some stability, particularly in lifestyle-driven markets, but the broader trend leans toward selective buyer activity.
New Insight: The latest data confirm that some coastal California counties continue to see negative or flat YoY growth (often in higher-priced enclaves), while inland and smaller coastal counties hold up better. This underscores a “two-speed” market where interest-rate sensitivity and tech sector volatility weigh on ultra-luxury spots, even as more moderately priced luxury enclaves remain in demand.
Mountain States: Lifestyle-Driven Boom
Mountain towns like Big Sky, MT (+67.78% 5-Yr) and Edwards, CO (+102.96% 5-Yr) exemplify the long-term surge in demand for outdoor living and remote work flexibility. Gallatin Gateway, MT, reported a 19.59% YoY increase, reflecting the continued appeal of exclusive, nature-adjacent properties.
New Insight: The latest map data confirm continued positive YoY trends in many Mountain West counties, outpacing national averages. Rural and scenic areas seem especially resilient, capitalizing on lifestyle-driven in‐migration from pricier coastal regions and the widespread acceptance of remote or hybrid work arrangements.
Northeast: Resilient Suburbs
While areas like Amagansett, NY (-6.58%) signal a pullback in some ultra-luxury pockets, suburban demand remains robust. Counties such as Westchester and Bergen benefit from affluent buyers seeking suburban living close to urban amenities. This shift has bolstered markets like Bedford, MA (+11.62% YoY) and Amherst, NH (+9.60% YoY), which cater to buyers prioritizing space and accessibility.
New Insight: Recent data suggest the Northeast continues to show consistent YoY gains in many suburban areas, often outpacing national averages. A shortage of inventory and sustained white-collar job markets help these suburban pockets remain resilient, even where broader economic concerns persist.
2. Market Trends Based on Buyer Preferences
Sunbelt Strength
Florida remains a key player, with standout markets like Fisher Island (+7.61% YoY, +36.47% 3-Yr) and Golf (+10.71% YoY, +36.16% 3-Yr) attracting buyers seeking favorable taxes, warm weather, and lifestyle perks. However, some luxury second-home communities, such as Boca Grande (-8.84% YoY), show signs of correction, hinting at growing buyer selectivity and natural disaster impacts.
New Insight: Recent county-level data show more pockets of red (negative YoY) along Florida’s coast than in past quarters. This appears to be a natural “leveling off” from the explosive price surges in 2021–2022. Buyers have grown increasingly discerning, balancing the desire for sunbelt living with affordability and climate-related concerns (e.g., hurricanes, rising insurance costs).
Tech Hub Cooldown
Silicon Valley markets like Burlingame, CA (+2.04% YoY, -3.13% 3-Yr) and Cupertino, CA (+16.73% YoY) illustrate a moderated recovery in tech-dependent areas. While short-term gains offer hope, long-term metrics reflect tepid enthusiasm amidst economic uncertainty.
New Insight: The map shows a notable number of Northern California counties in negative YoY territory, underscoring that luxury demand around tech corridors remains patchy. Remote work has also steered some affluent buyers to more cost-effective locales, contributing to a split market in the Bay Area.
3. Economic Impact on Luxury Markets
Interest rates are still reshaping the landscape. While ultra-high-net-worth buyers remain less rate-sensitive, the overall sentiment is cooling in regions like Calistoga, CA (-5.13%) and Bee Cave, TX (-5.11%). Selectivity is rising, with buyers scrutinizing value and market stability more closely than ever.
New Insight: The visual map data confirm that higher-priced enclaves can be among the first to show YoY softening under elevated interest rates. Even where buyers are relatively insulated from borrowing costs, the psychological impact of rate hikes and economic uncertainty has prompted a more cautious stance.
4. Emerging Luxury Hotspots
Mountain and Resort Towns: The Rise Continues
Markets like Gallatin Gateway, MT, and Edwards, CO, remain magnets for lifestyle-driven buyers. Their appeal lies in exclusivity, natural beauty, and a work-from-anywhere ethos.
New Insight: Scattered counties in the Southwest and Intermountain West also stand out in the newest data. High wage growthin certain energy or tech-adjacent regions, plus ongoing in-migration, helps sustain these boomtowns.
Texas and the Carolinas: Semi-Rural Resilience
Smaller luxury markets such as Cave Creek, AZ (+10.10%) and Driggs, ID (+8.63%) highlight the growing demand for properties that balance space with accessibility.
New Insight: In addition to Cave Creek and Driggs, various “secondary” or semi-rural counties across Texas, the Carolinas, and Arizona show moderate to strong YoY growth. These locales benefit from affordability relative to coastal markets and job growth in business-friendly states.
New Jersey and New York: Affordable Alternatives
Suburban New Jersey towns and New York counties like Rensselaer are gaining momentum as luxury buyers seek more affordability without sacrificing proximity to key urban areas.
New Insight: The map reveals that many suburban/exurban counties around major East Coast metros are still in positive YoY territory, confirming that flexible commutes and relative affordability keep attracting upper-tier buyers.
5. Counterintuitive Trends and Declines
Resort Market Challenges
Despite their desirability, some resort communities like Creston, CA (-2.29%) and Davenport, CA (-7.66%) are experiencing a dip. These corrections suggest buyers are reevaluating second-home investments, likely due to affordability pressures or over-supply.
New Insight: Newer data reveal pockets of red (negative YoY) even in high-demand resort destinations—a sign that buyers are reassessing second-home values if they perceive them as overpriced or vulnerable to climate and economic shifts.
Environmental and Geopolitical Concerns
Florida’s coastal markets are facing heightened scrutiny due to climate risks, while Hawaii’s reliance on tourism has tempered its luxury market performance outside Honolulu.
New Insight: The map’s red patches along Florida’s coast may reflect buyers factoring in flood and hurricane risk, as well as skyrocketing insurance costs. Climate‐related caution appears to be making some second-home purchases less urgent.
6. Long-Term Investment and Stability
Mountain Markets Dominate
With Big Sky (+67.78% 5-Yr) and Edwards (+102.96% 5-Yr) delivering triple-digit returns, these regions continue to lead as investment havens for the luxury sector.
New Insight: Ongoing positive YoY growth in the Mountain West underpins the notion that low inventory + high demand remain a potent combination, sustaining elevated prices over the longer term.
Northeast Resilience
Long-term growth in regions like Amherst, NH, and Bedford, MA, underscores the sustained appeal of suburban luxury markets with solid infrastructure and proximity to cities.
New Insight: Multiple Northeastern counties remain in solid blue territory for YoY appreciation, reinforcing that jobs, commutability, and low supply continue to prop up home values, even at the high end.
Takeaways for Luxury Real Estate Professionals
1.Adapt Marketing to Buyer Selectivity
Emphasize the value, exclusivity, and long-term potential of properties in volatile or cooling markets. Highlight local micro-trends where pockets of demand remain strong despite broader slowdowns.
2.Focus on Lifestyle and Amenities
Highlight tax advantages, space, and lifestyle benefits in high-growth markets like Florida, the Mountain West, and the Carolinas. Be prepared to address buyers’ climate and insurance concerns, especially in coastal regions.
3.Monitor Market Stability
Stay informed on metrics like multi-year appreciation to guide buyers seeking steady returns. Leverage new data points—such as emerging pockets of strong YoY growth in interior or secondary markets—to inform investment strategies.
4.Prepare for Geopolitical and Environmental Impact
Position properties in less vulnerable locations as safe, long-term investments. Buyers are watching for climate resilience and shifting their purchase decisions accordingly.
The luxury housing market is evolving, with buyers favoring regions that offer lifestyle advantages and investment stability. Recent data reinforce a hyper-local dynamic: some coastal areas face headwinds, while inland and suburban pockets remain remarkably robust. Professionals who stay attuned to these micro‐trends—and understand how interest rates, remote work, and environmental concerns shape buyer psychology—will lead the way in 2024 and beyond.
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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 2025-01
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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