Generational Wealth Is Redefining the Luxury Real Estate Market in 2026

Demand for luxury real estate is predicted to continue throughout 2026 with the transfer of generational wealth being one of the leading drivers, according to the most recent Luxury Outlook from Sotheby’s International Realty.

In 2025 alone, an estimated $6 trillion was passed down, creating a new class of high-net-worth individuals (HNWIs) who are increasing demand for high-end properties. This influx of inherited wealth is helping insulate the luxury market from broader economic pressures and interest rate sensitivity, according to the Sotheby’s report.

“We’re also seeing that luxury homebuyers are younger, which is a function of wealth creation and the transfer of wealth to a new generation. This is in contrast to the overall housing market, where homebuyers are older.” Says Philip A. White Jr., president and CEO, Sotheby’s International Realty.

According to the 2026 Luxury Outlook, this wealth-driven demand is one contributing factor pushing luxury home values higher, with the U.S. entry point now starting around $1.3 million. Additionally, inventory levels have largely returned to pre-pandemic norms, giving buyers more choice while maintaining healthy market conditions. Foreign buyer activity in the U.S. has also surged, rising 44% as global wealth seeks stable, lifestyle-oriented assets.

As trillions in inherited capital continue to flow into tangible assets, luxury homes remain a preferred store of value, lifestyle investment, and legacy purchase. With strong international demand, improving inventory, and buyers empowered by wealth rather than leverage, the luxury real estate market is well positioned for continued growth in 2026.

Read the full 2026 Luxury Outlook from Sotheby’s International Realty here.

View more Market Updates on LuxuryRealty.com.

SOURCES:
2026 Luxury Outlook, Sotheby’s International Realty – luxuryoutlook.com