The definition of a luxury home is becoming more expensive by the year. According to a recent Sotheby’s International Realty study, rising values and wealth trends are pushing luxury real estate further out of reach in many markets while reinforcing its resilience compared to the broader housing sector.
Key Points
• The national entry point for a luxury home reached $1.3 million in 2025
• Luxury pricing varies widely, starting near $4 million in Los Angeles and $2.8 million in New York City
• High end luxury homes begin around $2 million, while ultra luxury starts above $5.4 million
• Wealth transfers and increased cash buyers are driving continued strength in the luxury market
Closing Wrap-Up
As inventory stabilizes and wealth shifts to younger generations, luxury real estate remains a stronghold of the housing market. Heading into 2026, the gap between luxury and mainstream housing continues to define where demand is headed.
By: J.R. Duren | The Independent | January 2026
