U.S. Luxury Housing Diverges Sharply Across Local Markets
MWN-AI** Summary
The luxury housing market in the U.S. is exhibiting significant divergence across local markets, according to the December 2025 Realtor.com® Luxury Housing Report. The national entry threshold for luxury homes, defined as the 90th percentile of listing prices, is currently set at $1.19 million, reflecting a modest year-over-year decline of just 0.6%. While overall luxury prices appear to be stabilizing, they vary dramatically by region. For instance, in areas like Connecticut, luxury homes start at over five times the local median price, showcasing the stark divide between high-end homes and the broader market. Conversely, in cities like Orlando, luxury listings are priced more closely to the median, signaling a more connected housing landscape.
Anthony Smith, a senior economist at Realtor.com®, notes that large discrepancies between typical and luxury home prices do not necessarily indicate trouble; they may illustrate segmented markets where luxury operations differ markedly from residential trends. This segmentation suggests that shifts in high-end demand can influence luxury pricing without impacting the lower median home prices.
Highlights from the report show that Miami has overtaken New York City in terms of $1 million-plus listings, reflecting its strong inventory dynamics and varied buyer profiles, which include cash buyers and international investors. Major luxury markets, including multiple Californian metros, experienced year-over-year price declines ranging from 6% to 15%. The report underscores the contrasting dynamics in luxury housing, revealing an intricate tapestry of market conditions influenced by local economies, buyer behaviors, and demographic shifts.
MWN-AI** Analysis
The luxury housing market in the U.S. is presenting a bifurcated landscape, with substantial variations across local markets. As of December 2025, the national entry point for luxury homes stands at approximately $1.19 million, showing resilience with a minimal year-over-year decline of just 0.6%. However, this average masks significant disparity, with some metros, like Connecticut, featuring luxury listings positioned over five times higher than typical homes, while areas like Orlando see luxury homes priced closer to the median.
For prospective buyers and investors, this divergence suggests a strategic approach is necessary. Markets with steep luxury-to-median price ratios may indicate a niche luxury demand that could insulate them from broader economic shifts. Therefore, buyers focusing on aggressive markets should consider properties with unique characteristics, as even minor fluctuations at the high end could dramatically influence pricing.
Conversely, areas where luxury homes are more integrated with the overall market, like Orlando and Charlotte, may offer greater price stability and lower investment risk. These regions reflect more balanced economic conditions, with luxury housing remaining connected to broader socioeconomic trends. Prospective buyers in these locales should aim for properties that appeal generationally and are in proximity to amenities and infrastructure, enhancing long-term value appreciation potential.
Additionally, Miami's rise as a leader in listings over $1 million indicates changing buyer demographics and preferences. The influx of residents from higher-tax states seeking favorable climates and investment opportunities could sustain demand in this area, presenting attractive options for those targeting luxury in a less saturated market.
In summary, understanding these dynamics and market-specific conditions can yield strategic advantages for luxury housing investments, whether targeting high-end exclusivity or more egalitarian markets.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
Luxury homes cost as little as 2× the typical listing in some metros and more than 5× in others
AUSTIN, Texas, Jan. 26, 2026 /PRNewswire/ -- Luxury home prices stabilized at the end of 2025, while the gap between luxury homes and typical listings varied widely across local housing markets. The national entry point for luxury, defined as the 90th percentile of listing prices, was $1.19 million in December, down just 0.6% from a year ago, according to the December Realtor.com® Luxury Housing Report. The smaller decline compared with earlier months suggests luxury prices overall may be approaching a near-term floor.
The gap between luxury homes and typical listings varies widely by market. Nationally, luxury homes are priced at about three times the median listing price, but that relationship looks very different across metros. In parts of Connecticut, luxury homes are priced more than five times higher than the local median, reflecting sharp divides between high-end neighborhoods and the broader market. By contrast, in metros like Orlando, Fla., luxury homes are priced much closer to the median, making high-end housing feel more connected to the overall market.
"Big gaps between luxury and typical home prices aren't automatically a warning sign," said Anthony Smith, senior economist at Realtor.com®. "They often point to markets that are highly segmented, where luxury behaves differently from the rest of the housing market. In those places, even small shifts at the high end can create noticeable changes in luxury pricing without spilling over to the median home price."
National Luxury Overview
Pricing | December 2025 | Monthly Change | YoY Change |
Luxury Threshold 90th Percentile | $1,192,866 | -0.6 % | -0.6 % |
High-End Luxury Threshold 95th Percentile | $1,903,974 | -1.4 % | -3.0 % |
Ultra Luxury Threshold 99th Percentile | $5,531,567 | 0.8 % | -4.1 % |
Million-Dollar Listing Share | 12.0 % | -0.8pp | -0.3pp |
Most expensive luxury markets: declines persist, but vary by metro
In December, 9 of the 10 most expensive luxury markets still posted year-over-year declines in prices, though several saw smaller drops than last month. Heber, UT remained the nation's most expensive luxury market, with the top 10% of listings beginning at $6.95 million (+5.8% YoY). Meanwhile, several major California metros continued to reset, with luxury prices down 6% to 15% year over year across Los Angeles, San Jose, Santa Rosa, and Oxnard.
Top 10 Markets By 90th Percentile Listing Price
Rank | Area | Metro/ | 10% Most | 10% Most | Average | Multiple to Local |
1 | Heber, Utah | Micro | $6,945,000 | 5.8 % | 867 | 4.6 |
2 | Key West-Key Largo, Fla. | Micro | $4,996,500 | -3.1 % | 834 | 3.8 |
3 | Los Angeles-Long Beach-Anaheim, Calif. | Metro | $4,059,710 | -6.2 % | 9,266 | 3.8 |
4 | Bridgeport-Stamford-Danbury, Conn. | Metro | $3,995,000 | -11.2 % | 541 | 5.4 |
5 | Kahului-Wailuku, Hawaii | Metro | $3,857,250 | -17.1 % | 704 | 3.7 |
6 | Santa Rosa-Petaluma, Calif. | Metro | $3,700,000 | -5.6 % | 506 | 3.7 |
7 | Naples-Marco Island, Fla. | Metro | $3,612,231 | -2.3 % | 2,461 | 5.0 |
8 | San Jose-Sunnyvale-Santa Clara, Calif. | Metro | $3,498,000 | -7.4 % | 1,026 | 2.9 |
9 | New York-Newark-Jersey City, N.Y.-N.J. | Metro | $2,999,603 | -9.0 % | 11,619 | 4.0 |
10 | Oxnard-Thousand Oaks-Ventura, Calif. | Metro | $2,985,000 | -14.7 % | 663 | 3.2 |
Miami surpasses New York in $1M+ inventory
A notable year-end shift: The Miami metro now has the most $1 million-plus listings in the country, edging past the New York City metro. The crossover reflects Miami's steadier luxury inventory pattern and a buyer mix that includes more cash purchasers, international buyers, retirees, and second-home shoppers, supporting more consistent listing activity across seasons.
More than one-quarter (26.3%) of demand in the Miami metro originates from the New York metro, highlighting a close connection shaped by higher housing and tax costs in New York, Florida's lack of state income tax, lifestyle and climate advantages, the rise of remote work, and the growing presence of finance, private equity, and crypto firms with New York roots in South Florida.
Where the luxury gap is widest
Nationally, the entry point to luxury is about three times the median listing price. But in the metros below, luxury is far more disconnected from the typical market, which often reflects sharp neighborhood-level divides and highly concentrated high-end demand.
Luxury Markets With the Widest Gaps Between Median and Luxury Prices
Rank | Area | 10% Most | Multiple to | Multiple to | Median Days |
0 | USA | $1,192,866 | 3.0 | 3.0 | 88 |
1 | Bridgeport-Stamford-Danbury, Conn. | $3,995,000 | 5.4 | 10.0 | 89 |
2 | Naples-Marco Island, Fla. | $3,612,231 | 5.0 | 9.0 | 66 |
3 | Miami-Fort Lauderdale-West Palm Beach, Fla. | $2,437,028 | 4.9 | 6.1 | 93 |
4 | Crestview-Fort Walton Beach-Destin, Fla. | $2,837,322 | 4.9 | 7.1 | 117 |
6 | Heber, Utah | $6,945,000 | 4.6 | 17.4 | 133 |
5 | Atlantic City-Hammonton, N.J. | $2,372,550 | 4.5 | 5.9 | 93 |
8 | Charleston-North Charleston, S.C. | $1,959,417 | 4.0 | 4.9 | 86 |
9 | New York-Newark-Jersey City, N.Y.-N.J. | $2,999,603 | 4.0 | 7.5 | 100 |
7 | North Port-Bradenton-Sarasota, Fla. | $1,869,281 | 3.9 | 4.7 | 75 |
10 Tie | Key West-Key Largo, Fla. | $4,996,500 | 3.8 | 12.5 | 68 |
10 Tie | Los Angeles-Long Beach-Anaheim, Calif. | $4,059,710 | 3.8 | 10.2 | 91 |
Markets Where Luxury Is Closest to the Median
In other metros, luxury remains far more tethered to the broader housing market. These areas typically feature newer housing stock, more expansive development patterns, and fewer ultra-exclusive enclaves, narrowing the luxury-to-median multiple to roughly 2.1× to 2.3×.
Metros With the Smallest Gap Between Luxury and Median Prices
Rank | Area | 10% Most | Multiple to Local | Multiple to National | Median Days on |
0 | USA | $1,192,866 | 3.0 | 3.0 | 88 |
1 | Orlando-Kissimmee-Sanford, Fla. | $889,260 | 2.1 | 2.2 | 93 |
2 | Riverside-San Bernardino-Ontario, Calif. | $1,278,288 | 2.2 | 3.2 | 71 |
3 | Charlotte-Concord-Gastonia, N.C.-S.C. | $922,626 | 2.2 | 2.3 | 82 |
4 | Portland-Vancouver-Hillsboro, Ore.-Wash. | $1,289,180 | 2.2 | 3.2 | 131 |
6 | Raleigh-Cary, N.C. | $983,406 | 2.2 | 2.5 | 92 |
5 | Atlanta-Sandy Springs-Roswell, Ga. | $899,663 | 2.2 | 2.2 | 79 |
8 | Houston-Pasadena-The Woodlands, Texas | $789,558 | 2.3 | 2.0 | 71 |
9 | Denver-Aurora-Centennial, Colo. | $1,265,555 | 2.3 | 3.2 | 92 |
7 | Dallas-Fort Worth-Arlington, Texas | $950,136 | 2.3 | 2.4 | 82 |
10 Tie | Boise City, Idaho | $1,384,063 | 2.3 | 3.5 | 80 |
10 Tie | San Antonio-New Braunfels, Texas | $750,008 | 2.3 | 1.9 | 106 |
Methodology
All data in this report is sourced from Realtor.com® listing trends as of December 2025, reflecting active inventory of existing homes, including single-family residences, condos, townhomes, row homes, and co-ops. Listings reflect only those posted on MLS platforms that provide listing feeds to Realtor.com®. New-construction listings are excluded unless actively listed on participating MLSs.
Luxury segmentation is based on market-specific price percentiles, with the 90th percentile representing entry-level luxury, the 95th percentile marking high-end luxury, and the 99th percentile indicating ultraluxury. All calculations are based on listing prices, not final sales prices.
Metropolitan and micropolitan areas are defined using the Office of Management and Budget's OMB-2023 delineations, with Claritas 2025 household estimates used for relative comparisons. Where appropriate, we limited analysis to metros or micros with a minimum threshold of active million-dollar listings on average over the past year to ensure meaningful comparisons.
Historical listing trend data extends to July 2016, but year-over-year comparisons in this report use November 2024 as the baseline.
About Realtor.com®
Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.
Media contact: Emily Do, press@realtor.com
SOURCE Realtor.com
FAQ**
How does the divergence in luxury housing prices across U.S. markets reflect broader economic trends, as reported by Realtor.com, and how might this impact investment strategies for real estate investors like those under News Corporation NWSA?
Given the findings from the Realtor.com Luxury Housing Report, what factors contribute to markets like Connecticut having luxury homes priced more than five times the local median, and how can investors capitalize on such disparities for future investments relating to News Corporation NWSA?
With Miami now surpassing New York in listings priced over $1 million, what implications does this shift have for luxury investment opportunities in each metro area, especially considering insights from the Realtor.com report and possibly impacting News Corporation NWSA's market evaluations?
According to the Realtor.com report, how might the stability of luxury home prices at the end of 2025 indicate future trends for potential real estate investments, and what role could News Corporation NWSA play in leveraging these insights for investor guidance?
**MWN-AI FAQ is based on asking OpenAI questions about News Corporation (NASDAQ: NWSA).
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