U.S. Luxury Housing Diverges Sharply Across Local Markets

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

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

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

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

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, [email protected]

SOURCE Realtor.com