Luxury real estate is poised to outperform the broader housing market again in 2026, according to the latest Sotheby’s International Realty Luxury Outlook Report. Drawing from global sales data and buyer behavior, the report points to resilient demand at the top end of the market, where affluent buyers remain largely unfazed by interest rate shifts.
Key Points
• Inherited wealth is fueling demand, with trillions transferred globally and many buyers paying in cash
• Second and third home purchases continue to dominate, especially in lifestyle driven markets like Florida
• International buyer activity is surging again, with strong interest in U.S. hubs and secure lifestyle destinations
• Multigenerational living is reshaping luxury home design, prioritizing privacy, flexibility, and shared space
Closing Wrap-Up
As buyers focus on legacy, lifestyle, and long term value, luxury real estate remains a preferred store of wealth. Heading into 2026, the market reflects confidence rooted in global capital, evolving family needs, and enduring demand for exceptional homes.
By: Abby Montanez | Robb Report | January 7, 2026
Photo: Courtesy of Getty Images
