Report Overview

Significant growth of high-net-worth individuals (HNIs), favorable mortgage rates and tax incentives, and global interest and investment conditions are expected to drive United States Luxury Real Estate Market during the forecast period between 2025 and 2031.

United States Luxury Real Estate Market – Industry Trends & Forecast Report, 2031

United States Luxury Real Estate Market size was estimated at USD 164.68 billion in 2024. During the forecast period between 2025 and 2031, United States Luxury Real Estate Market size is projected to grow at a CAGR of 5.5% reaching a value of USD 239.55 billion by 2031. Prominent drivers of the market include the growing demand for premium properties characterized by exceptional quality, exclusive locations, and sophisticated design. Luxury real estate is defined by expansive layouts, top-tier construction materials, state-of-the-art technologies, and premium amenities such as smart home integration, private pools, home theatres, and wine cellars. These properties are typically situated in prestigious urban areas, gated communities, waterfronts, or countryside estates, offering privacy, security, and an elevated lifestyle. The market is also driven by properties with unique architecture, historical value, and a strong sense of character, appealing to affluent buyers seeking exclusivity and refined living experiences.

Luxury Real Estate – Overview

Luxury real estate refers to high-end properties that offer exceptional quality, prime locations, exclusive amenities, and superior design. These homes are typically located in prestigious neighborhoods, scenic settings, or major metropolitan areas, and feature upscale finishes, spacious layouts, privacy, and security. Often custom-built, luxury properties may include smart home technology, private pools, home theaters, and concierge services. Prices are significantly above the average market rate, reflecting the rarity and desirability of the property. Buyers of luxury real estate seek prestige, comfort, and investment value, making this market segment both a lifestyle choice and a financial asset.

United States Luxury Real Estate Market

Growth Drivers

Increasing Number of High-Net-Worth Individuals (HNIs)

The growth of United States Luxury Real Estate Market is largely driven by the rising number of ultra-high net worth (UHNIs) and high net worth individuals (HNIs), who are increasingly investing in premium properties for personal use, vacation homes, and portfolio diversification. This trend is further supported by urbanization, as wealthy buyers are drawn to global cities like New York for their blend of luxury living and easy access to financial, cultural, and recreational amenities. Moreover, improved global connectivity is encouraging cross-border investments, with affluent individuals seeking exclusive lifestyle experiences and financial advantages in international property markets.

Challenges

High Entry Costs

High entry costs act as a significant restraint on the growth of United States Luxury Real Estate Market. The substantial upfront investment required, including high property prices, taxes, and maintenance costs, limits access primarily to ultra-wealthy buyers. This exclusivity reduces the pool of potential investors and slows market expansion. Additionally, fluctuating interest rates and stricter lending policies further deter new entrants, making it challenging for even affluent individuals to invest. As a result, high entry barriers continue to restrict broader participation and limit the overall growth potential of the luxury real estate segment in United States.

Impact of Escalating Geopolitical Tensions on United States Luxury Real Estate Market

Escalating geopolitical tensions could significantly impact United States Luxury Real Estate Market by creating uncertainty in global financial markets and investor sentiment. International buyers, who form a vital segment of United States Luxury Real Estate Market, may delay or withdraw investments due to concerns over political instability, currency fluctuations, and potential policy changes. Trade restrictions, sanctions, or strained diplomatic relations can also hinder cross-border transactions and limit the flow of foreign capital. Furthermore, heightened security concerns and tightened immigration policies may reduce demand from global elites seeking safe and stable investment destinations, thereby slowing the overall growth of United States Luxury Real Estate Market.

United States Luxury Real Estate Market

Segmental Coverage

United States Luxury Real Estate Market – By Type

Based on type, United States Luxury Real Estate Market is divided into New Construction, Resale Homes, Luxury Rentals, Custom-Built Homes, and Eco-Luxury Homes segments. The new construction segment holds the highest share in United States Luxury Real Estate Market by type. In 2024, affluent homebuyers have become increasingly selective, driving strong demand for new construction luxury properties that meet their exacting standards. According to the Coldwell Banker Global Luxury Mid-Year Report, over 44% of luxury property specialists highlight a persistent preference for “unicorn” properties—high-end, move-in-ready homes that are impeccably presented and richly amenitized. These new construction homes offer buyers turnkey living with modern designs, advanced features, and tailored lifestyle experiences, making them highly sought after in a market facing limited inventory. As a result, new construction properties continue to dominate the luxury real estate landscape, reflecting buyers’ desire for convenience, quality, and exclusivity.

United States Luxury Real Estate Market – By Property Type

United States Luxury Real Estate Market by property type is divided into Single-Family Homes, Condominiums, Penthouses, Townhouses, Villas, and Luxury Apartments segments. The single-family homes segment holds the largest market share of United States Luxury Real Estate Market by property type, driven by strong buyer demand and a surge in new home sales that rose 10.9% month-over-month to a seasonally adjusted annual rate of 743,000 units—the sharpest growth since August 2022. This segment’s dominance is fueled by buyer incentives addressing affordability challenges, particularly in the resale market, and is especially prominent in the South and Midwest regions where sales increased significantly. Single-family luxury homes appeal to buyers seeking more space, privacy, and exclusivity compared to multifamily or condominium options, with median home prices reaching USD 407,200. The market remains balanced with about 8.1 months of supply, supporting stable growth. Additionally, rental demand for single-family homes has risen sharply, with rents increasing nearly 41% since 2020, underscoring their appeal for tenants desiring suburban living. Both institutional and individual investors view single-family luxury homes as resilient assets offering strong returns, ensuring this property type maintains its leading role in the evolving United States Luxury Real Estate Market amid changing lifestyle preferences and economic conditions.

United States Luxury Real Estate Market – By Buyer Type

On the basis of buyer type, United States Luxury Real Estate Market is divided into Domestic Buyers, International Buyers, High-Net-Worth Individuals (HNIs), Real Estate Investors, and Vacation/Second-Home Buyers segments.

Competitive Landscape

Major players operating in United States Luxury Real Estate Market include Coldwell Banker Global Luxury, Sotheby’s International Realty, Douglas Elliman Real Estate, Compass, Inc., The Agency, Keller Williams Luxury International, Berkshire Hathaway HomeServices, Christie’s International Real Estate, Corcoran Group, Redfin Corporation (Redfin Premier), Engel & Völkers, RE/MAX Collection, and Zillow Group, Inc. (Zillow Premier Agent). To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Type

• New Construction

• Resale Homes

• Luxury Rentals

• Custom-Built Homes

• Eco-Luxury Homes

By Property Type

• Single-Family Homes

• Condominiums

• Penthouses

• Townhouses

• Villas

• Luxury Apartments

By Buyer Type

• Domestic Buyers

• International Buyers

• High-Net-Worth Individuals

• Real Estate Investors

• Vacation/Second-Home Buyers