Feb 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.
Luxury Real Estate 2025: A Market in Transition
The luxury real estate market in 2025 is evolving rapidly, shaped by a dynamic mix of economic conditions, shifting buyer priorities, and regional performance divergence. While pro-business policies and a strong equity markethave fueled optimism among high-net-worth individuals (HNWIs), elevated interest rates, tax policy uncertainty, and climate-related concerns are prompting a more selective approach to luxury home purchases. Buyers are no longer chasing peak valuations but instead seeking properties that offer long-term value, stability, and lifestyle benefits.
At the same time, regional luxury markets are moving at different speeds. Traditionally strong urban enclaves in California and New York are experiencing price stagnation or moderate declines, while semi-rural and suburban markets in the Mountain West, Texas, and the Carolinas continue to attract affluent buyers seeking affordability, space, and tax advantages. The rise of “stealth wealth” preferences, climate-resilient investments, and experiential luxury homes is further reshaping demand. For real estate professionals, the ability to identify emerging hotspots, understand shifting buyer psychology, and position properties strategically will be key to success in this increasingly nuanced market.
Based on the latest Luxe Report data, here’s an updated analysis of key luxury real estate trends across the U.S.:
1. Regional Performance Divergence
West Coast: Diverging Trends Continue
California’s luxury market remains a two-speed landscape:
• Growth Areas: Smaller, sought-after locations like Aliso Viejo (+15.73%) and Acton, CA (+7.43%) show strength.
• Cooling Markets: Traditionally affluent enclaves like Atherton (-2.69%) and Belvedere (-3.73%) continue to soften, reflecting interest-rate sensitivity and ongoing tech sector volatility.
New Insight:
Recent data confirms further YoY declines in high-priced enclaves along the coast, while inland and mid-tier coastal luxury areas remain resilient. Buyers are moving away from ultra-high-tax zones, favoring luxury properties in more moderately priced regions.
Mountain States: Lifestyle-Driven Boom Persists
Mountain towns continue to dominate long-term luxury growth:
• Big Sky, MT (+9.88% YoY) remains a magnet for buyers seeking exclusivity and outdoor living.
• Bozeman, MT (+7.18%) and Avon, CO (+8.40%) sustain strong demand as remote work persists.
New Insight:
Latest county-level data confirms that luxury properties in mountain regions continue to outperform national trends, driven by high-net-worth migration from urban centers and climate-conscious investment strategies.
Northeast: The Strength of Suburban Resilience
• Growth Areas: Suburban areas such as Bedford, NH (+7.84%) and Amherst, NH (+7.84%) remain robust.
• Cooling Markets: High-cost enclaves like Amagansett, NY (-8.70%) are seeing softening demand.
New Insight:
Suburban luxury pockets in the Northeast are holding steady with consistent YoY gains, supported by limited inventory, sustained job markets, and demand for more space close to urban cores.
2. Market Trends Based on Buyer Preferences
Sunbelt Strength with Some Soft Spots
Florida remains a top destination, but buyer selectivity is increasing:
• Rising Markets: Coral Gables, FL (+10.22%) and Boca Raton, FL (+2.84%) maintain demand.
• Correction in Ultra-Luxury: Boca Grande, FL (-8.90%) and Bradenton Beach, FL (-10.64%) suggest a natural leveling-off post-2021–2022 price surges.
New Insight:
County-level data shows more red (negative YoY growth) along Florida’s coastal luxury markets than in previous quarters, signaling buyer hesitation due to affordability and climate risk concerns (hurricanes, rising insurance costs).
Tech Hub Cooldown in Silicon Valley
Luxury demand remains patchy in Northern California’s tech corridors:
• Modest Rebounds: Campbell, CA (+16.06%) and Cupertino, CA (+16.73%).
• Lagging Areas: Atherton, CA (-2.69%) and Burlingame, CA (+1.66%) still show slower long-term appreciation.
New Insight:
The latest data confirms that luxury home values in tech-heavy areas are volatile due to remote work shifts and market uncertainty. Affluent buyers are seeking alternative locations with better affordability.
3. Economic Impact on Luxury Markets
Interest Rates Are Still Reshaping Luxury Buyer Sentiment
While ultra-high-net-worth buyers remain less rate-sensitive, the impact of higher borrowing costs is evident in:
• Softening Markets: Calistoga, CA (-6.22%) and Bee Cave, TX (-6.10%).
• Resilient Luxury Enclaves: Cambridge, MA (+4.63%) and Chino Hills, CA (+11.10%).
New Insight:
Visual data confirms that higher-priced luxury enclaves are among the first to show YoY declines under prolonged interest rate pressures. Even in cash-heavy transactions, psychological caution around the broader economic climate is influencing buying decisions.
4. Emerging Luxury Hotspots
Mountain & Resort Towns: A Safe Haven for Luxury Investment
• Big Sky, MT (+9.88%) and Edwards, CO (+8.40%) continue to draw lifestyle-driven buyers.
• Cashiers, NC (+9.21%) is emerging as a new luxury market leader in the Southeast.
New Insight:
Recent data highlights continued price growth in Southwest and Intermountain West counties, driven by high-wage earners relocating from urban hubs and increased in-migration.
Texas and the Carolinas: Semi-Rural Resilience
• Cave Creek, AZ (+8.04%) and Driggs, ID (+8.63%) confirm sustained demand for spacious luxury living with accessibility to metro areas.
New Insight:
New Luxe Report data shows consistent YoY growth in semi-rural counties across Texas, the Carolinas, and Arizona, confirming that affordability and business-friendly policies continue to attract luxury buyers.
Northeast & New Jersey: Affordable Luxury Alternatives
• Booming Suburbs: Colts Neck Township, NJ (+9.05%) and Bedford, NH (+7.84%) are benefiting from luxury buyers seeking value outside major metros.
New Insight:
Suburban/exurban counties around East Coast metros remain in positive YoY growth territory, reinforcing that flexible work arrangements and relative affordability sustain luxury demand.
5. Counterintuitive Trends and Declines
Resort Market Challenges & Luxury Second-Home Reassessment
• Cooling in Some Vacation Markets: Bethany Beach, DE (-11.25%) and Creston, CA (-2.29%) indicate that some buyers are reevaluating second-home investments.
New Insight:
Pockets of negative YoY growth in historically strong resort areas suggest that affluent buyers are taking a more selective approach—weighing overpricing, climate risk, and economic shifts.
Environmental and Geopolitical Factors Affecting Luxury Demand
• Florida’s coastal markets remain under scrutiny due to hurricanes and rising insurance costs.
• Hawaii’s luxury market shows a tempered performance outside of Honolulu due to tourism reliance.
New Insight:
More coastal areas in Florida and the Northeast are showing negative YoY growth as climate resilience becomes a major factor in second-home purchases.
6. Long-Term Investment & Stability
Mountain Markets Continue to Dominate
• Big Sky, MT (+9.88%) and Aspen, CO (+6.32%) remain among the strongest long-term investment markets.
New Insight:
Positive YoY trends in the Mountain West confirm a supply-constrained environment with sustained high demand, making these markets long-term luxury investment winners.
Northeast Resilience in Suburban Markets
• Amherst, NH (+7.84%) and Bedford, MA (+5.71%) continue to demonstrate stability.
New Insight:
Northeastern suburban counties show consistent demand, driven by strong job markets, commutability, and low inventory.
Takeaways for Luxury Real Estate Professionals
1. Adapt Marketing to Buyer Selectivity
• Focus on exclusive, lifestyle-driven narratives in price-sensitive or cooling markets.
2. Highlight Lifestyle & Amenities Over Location Alone
• Tax benefits, space, and community living are driving high-end transactions.
3. Monitor Market Stability & Long-Term Appreciation
• Markets with high five- and ten-year appreciation rates are safer investments.
4. Prepare for Climate & Economic Shifts
• Position properties in climate-resilient, high-growth locations as long-term wealth protection assets.
Luxury real estate in 2025 remains hyper-localized—some urban enclaves struggle, while suburban, mountain, and tax-friendly states thrive. Agents who understand micro-trends, interest rate effects, and climate-related buyer concerns will lead the market.
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 2025-02
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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