Luxury Homes set to Outperform the Broader Housing Market in 2026
The luxury real estate sector is set to continue to outperform the general housing market, a trend sustained despite high interest rates and affordability issues that affect many buyers.
This resilience is primarily due to the profile of high-end buyers. As highlighted in a recent report by Sotheby’s International Realty, demand is increasingly driven by affluent individuals who are less reliant on financing. Consequently, these wealth-driven buyers are less vulnerable to borrowing costs or short-term economic fluctuations.
“The general real estate market was more impacted by elevated interest rates and affordability issues such as higher prices,” says Philip A. White Jr., president and CEO, Sotheby’s International Realty, “but the luxury real estate market is positioned for continued outperformance, building on 2025’s robust foundation, which included areas seeing increased inventory, growing international homebuyer activity and a larger percentage of all-cash sales, particularly at the higher end.”
According to the report, this financial flexibility allows the luxury segment to remain resilient during periods of market uncertainty, supporting stable pricing and sustained activity at the top end. As a result, luxury real estate has emerged as a preferred store of value, offering both lifestyle benefits and long-term capital preservation.
Heading into 2026, the high-end market’s ability to attract confident buyers reinforces its position as one of the strongest segments, even as the broader housing market adjusts to tighter conditions.
Read the full 2026 Luxury Outlook from Sotheby’s International Realty here.
View more Market Updates on LuxuryRealty.com.
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