While the national entry point for luxury homes edged down slightly in September, buyers with a million-dollar budget can find significantly more space in some regions than others, according to Realtor.com’s latest Housing Market Luxury Report.
The report shows that in metros such as Atlanta, Denver and Houston, luxury homes priced between $1 million and $2 million often offer more than 4,000 square feet — roughly 50% larger than the national average of 2,994 square feet.
Coastal markets, including Honolulu, San Jose and San Francisco, remain constrained, with typical listings in that price range offering 1,651, 1,688, and 1,855 square feet, respectively.
“Luxury buyers are increasingly seeking value — and that doesn’t always mean a lower price tag, but rather more home for the money,” said Realtor.com senior economist Anthony Smith. “In markets like Honolulu or the Bay Area, buyers are paying for proximity, views, and prestige — not square footage.
“By contrast, in inland metros across the South and Midwest, high-end buyers can often find larger, newer homes with land and amenities that would cost two or three times as much in more supply-constrained coastal metros.”
Luxury benchmark slightly down
The national luxury benchmark, defined as the 90th percentile of listing prices, fell 0.5% month-over-month and 2.4% year-over-year to $1.24 million, the report said.
Data also shows the upper tiers of the market moderating — with the 95th percentile dropping 1.2% to $1.95 million and the ultra-luxury segment at the 99th percentile dipping 0.2% to $5.41 million.
Danielle Hale, chief economist at Realtor.com, said the modest softening reflects a broader market recalibration.
“We’re seeing a healthy rebalancing in the luxury home market after years of volatility,” she said. “The modest softening in luxury prices points to a market where buyers and sellers are adjusting expectations in line with broader economic conditions. In many cases, demand remains strong for well-priced homes, especially those that deliver distinctive space, quality or location.”
Luxury home sales remain subdued
Luxury homes also continue to sell more slowly than the overall market.
In September, homes at the 90th percentile spent a median of 79 days on the market, one day longer than August and five days longer than a year ago.
Ultra-luxury listings at the top 1% took up to 50 days longer to sell, consistent with historic norms given the selective nature of high-end transactions.
Santa Barbara, California, remains the nation’s priciest luxury market — with the top 10% of listings beginning at $8.95 million.
Heber, Utah, ranked second, supported by resort-driven demand and limited inventory.
Some minor shifts occurred among the remaining top 10 markets, with Rifle, Colorado, dropping off the list after failing to meet the $500,000 listing minimum for inclusion.
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