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.
2024 End of Year Luxury Real Estate Market Report – 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.
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.
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.
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.
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.
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
3.Monitor Market Stability: Stay informed on metrics like multi-year appreciation to guide buyers seeking steady returns.
4.Prepare for Geopolitical and Environmental Impact: Position properties in less vulnerable locations as safe, long-term investments.
The luxury housing market is evolving, with buyers favoring regions that offer lifestyle advantages and investment stability. Professionals who understand these dynamics will lead the way in 2024 and beyond.
Looking for our latest 12 month forecast down to the zip code? Follow this link
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 2024-12
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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