Luxury Home Prices Increasing Twice as Fast as Non-Luxury Homes

Luxury real estate continues to outperform the broader housing market, with high-end property prices rising at more than twice the pace of non-luxury homes across the United States.

According to a recent Redfin report, the median sale price of a luxury home climbed to $1.26 million in September 2025—a 5% year-over-year increase and the highest median luxury home price ever recorded for September. In comparison, non-luxury homes saw a much smaller 1.8% annual increase, reaching a median of $372,000.

This marks the second consecutive year that luxury prices have outpaced non-luxury homes. Since 2023, luxury home values have surged a total of 11%, while non-luxury properties have grown by roughly 6% over the same period.

Demand for high-end real estate remains strong despite elevated interest rates. Wealthier buyers—often paying in cash or relying on smaller mortgages—have shown resilience in the face of economic uncertainty, viewing real estate as a reliable long-term investment. This has kept the luxury market buoyant even as other segments cool.

Luxury home inventory saw a notable 7.7% increase year-over-year, reaching its highest September level since 2020. This rise in available listings suggests more luxury homeowners are choosing to sell into a strengthening market.

However, sales activity has remained relatively similar to the previous year, with luxury home sales up just 0.3% compared to September 2024.

The luxury housing market’s performance highlights a growing divide between high-end and mainstream segments. While affordability challenges continue to limit non-luxury buyers, affluent purchasers are sustaining momentum in premium markets, underscoring real estate’s ongoing appeal as a safe haven for wealth.

Read the full Redfin report here.

View more Luxury Real Estate Market Reports on LH Living.

SOURCES:
Redfin.com