March 2026 LMR North America by Robin Costoplos

"In many ways, luxury real estate is returning to its historical role: a tangible expression of wealth, stability, and quality of life."

NORTH AMERICAN LUXURY REVIEW

NORTH AMERICAN LUXURY REAL ESTATE: A MARKET DEFINED BY INTENTION, WEALTH AND LIFESTYLE

The North American luxury real estate market continues to enter its new phase, one defined less by urgency and scarcity and more by intention, stability, and long-term wealth positioning.

While the pandemic years generated extraordinary demand and rapid price growth, recent data suggests the luxury market has entered a more measured phase. Prices are still rising, but at a slower pace, ultraluxury transactions remain robust, and buyer demand has become more selective. Increasingly, affluent purchasers are motivated less by speculative investment and more by lifestyle priorities, long-term security, and the enduring value of owning exceptional property.

In many ways, luxury real estate is returning to its historical role: a tangible expression of wealth, stability, and quality of life.

A LARGE AND RESILIENT MARKET

North America remains one of the world’s most significant luxury residential markets. According to Modor Intelligence1 “the North America Luxury Residential Real Estate Market size was valued at USD 583.94 billion in 2025 and estimated to grow from USD 606.84 billion in 2026 to reach USD 735.48 billion by 2031, at a CAGR of 3.92% during the forecast period (2026-2031). Growing millionaire migration, tokenized ownership pilots, and a reallocation of institutional capital from offices to high-end housing are reshaping competitive dynamics.”

Several structural forces continue to support demand at the high end of the market. Wealth creation among high-net-worth individuals remains strong, family wealth transfers are accelerating, and many affluent households continue to seek real estate as a stable store of value within diversified portfolios.

Unlike the broader housing market, luxury buyers are also far less sensitive to mortgage rate changes. A large share of luxury transactions is completed with cash, insulating the sector from interest-rate volatility.

1 https://www.mordorintelligence.com/industry-reports/north-america-luxury-residential-real-estate-market?utm_source=chatgpt.com

YEAR-OVER-YEAR INSIGHTS FROM FEBRUARY

When compared with both 2024 and 2025, early 2026 shows continued resilience in the luxury real estate market, albeit at a more moderate pace.

Luxury single-family home prices increased approximately 1.1% year over year, while the attached luxury segment, including high-end condominiums, experienced a slight decline of 2.8%. However, over a two-year period luxury single-family prices have risen by roughly 3% and attached properties by 4.5%, highlighting the underlying stability, even as broader housing markets continue to adjust.

Sales activity has also remained relatively steady. Luxury single-family transactions rose 3.9% year over year, while activity in the attached segment remained largely on par with the previous year, demonstrating that affluent buyers continue to engage in the market despite broader economic uncertainty.

One of the most notable shifts occurred in 2025, when inventory levels rose significantly compared with 2024. In February alone, luxury inventory increased by more than 25%, and some markets experienced annual inventory growth of up to 40%. In early 2026, however, that momentum appears to have stabilized. February saw inventory increase by a modest 3.1% in the single-family segment, while the attached market recorded a 2.35% decline.

Importantly, the inventory growth seen over the past year was not necessarily a sign of market weakness. Rather, it represented a gradual rebalancing after several years of exceptionally constrained supply. Buyers today have more options and greater time to evaluate properties. That adjustment now appears to have reached a temporary equilibrium, as the number of new listings entering the market has also declined compared with February 2025.

For sellers and agents operating in the luxury segment, these conditions reinforce the growing importance of quality. Design, condition, location, and presentation have become critical differentiators in a more selective market. As a result, days on market for sold properties have increased, reflecting the more deliberate pace at which both buyers and sellers are choosing to engage.

MOMENTUM IN RECENT MONTHS

While year-over-year trends point to a moderating market, month-over-month activity indicates growing momentum as the year begins. Luxury single-family transactions increased 18.9% compared to January 2026, while the attached luxury segment rose 21.2% over the same period.

Seasonally, this uptick is not unexpected as the market moves toward the spring selling season. However, the increase is notable given that overall inventory has largely plateaued and the number of new listings entering the market has declined, suggesting that buyer demand remains strong despite limited fresh supply.

Pricing trends reveal a more nuanced story. The median sold price for luxury single-family homes rose 2.3% month over month, while the attached segment declined by 9.1% compared to January 2026. A closer look suggests this shift reflects the price bands currently driving activity rather than broad market changes.

In the single-family sector, continued demand for ultra-luxury properties is pushing median prices higher. Conversely, the attached market is seeing stronger activity in entry-level luxury properties, which has pulled the median price downward as a larger share of transactions occur at lower luxury price points.

THE STRENGTH OF THE ULTRA-LUXURY SEGMENT

Perhaps the most striking data point in the luxury sector is the continued strength of ultra-high-end transactions.

Sales above $10 million remain robust across major markets, while transactions above $20 million and even $50 million have increased significantly in recent years. This reflects the expanding population of ultra-high-net-worth individuals globally as well as the limited supply of truly exceptional properties.

For many of these buyers, real estate purchases are less about traditional investment returns and more about long-term asset preservation and lifestyle alignment.

A SHIFT TOWARD INTENTIONAL BUYING

One of the most defining characteristics of today’s luxury market is the shift toward more intentional purchasing behavior. Today’s affluent buyers are more deliberate. They are taking time to evaluate properties carefully and are prioritizing homes that align closely with their lifestyle needs.

This has created a clear divide within the luxury market. Turnkey homes in prime locations continue to command strong prices and sell relatively quickly. These properties often feature contemporary design, advanced technology, wellness amenities, and seamless indoor-outdoor living.

Properties that require significant renovation or that lack modern features, however, are taking longer to sell and may require more competitive pricing.

REAL ESTATE AS LIFESTYLE INFRASTRUCTURE

Beyond investment considerations, wealthy buyers increasingly view property as a form of lifestyle infrastructure, something that supports the way they want to live rather than simply serving as a financial asset. Several key trends illustrate this shift.

First, privacy and security have become increasingly important. Gated estates, private compounds, and homes with advanced security systems are in high demand among affluent buyers seeking greater control over their personal environment.

Second, wellness has become a central design priority. Luxury homes now frequently include spa facilities, meditation rooms, fitness centers, and extensive outdoor living spaces designed to promote health and relaxation.

Third, flexibility has become essential. Many luxury buyers want homes that can accommodate remote work, extended family visits, and multi-generational living.

In this sense, luxury real estate is evolving beyond the traditional idea of a “dream home.” Instead, it is becoming a comprehensive environment designed to support a particular lifestyle.

THE BROADER PERSPECTIVE

Ultimately, luxury real estate continues to occupy a distinctive place in the global wealth landscape. For many affluent buyers, property is not simply an investment, it is a tangible expression of security, personal identity, and the way they choose to live. And in uncertain times, those qualities remain as valuable as ever.

Whether you’re looking to invest, sell, or purchase locally or globally in 2025, understanding these trends and insights is a key part of making informed decisions in this evolving luxury market, and as always, we highly recommend working with a luxury property specialist to gain insights into what is truly happening in your local marketplace.

– 13 - MONTH MARKET TRENDS –

THE LUXURY NORTH AMERICAN MARKET

Single-Family Homes

Attached Homes Single-Family List Price Attached List Price

All data is based off median values. Median prices represent properties priced above respective city benchmark prices.

$1,700,000

$1,500,000

$1,300,000

$1,100,000

$900,000

$700,000

$500,000

A Review of Key Market Differences Year over Year

SINGLE-FAMILY HOMES

SINGLE-FAMILY HOMES MARKET SUMMARY | FEBRUARY 2026

• Official Market Type: Balanced Market with a 19.30% Sales Ratio.1

• Homes are selling for an average of 97.91% of list price.

• The median luxury threshold2 price is $900,000, and the median luxury home sales price is $1,340,000.

• Markets with the Highest Median Sales Price: Paradise Valley ($5,650,000), Ft. Lauderdale ($5,550,000), Telluride ($5,502,634), and Whistler ($4,650,000).

• Markets with the Highest Sales Ratio: San Francisco (100.0%), Howard County (63.6%), Marin County (55.0%), and Silicon Valley (53.5%).

A Review of Key Market Differences Year over Year

• Official Market Type: Balanced Market with a 13.14% Sales Ratio.1

• Attached homes are selling for an average of 98.01% of list price.

• The median luxury threshold2 price is $700,000, and the median attached luxury sale price is $870,540.

• Markets with the Highest Median Sales Price: San Francisco ($2,675,000), Eagle County ($2,675,000), Whistler ($2,200,000), and Ft. Lauderdale ($2,100,000).

• Markets with the Highest Sales Ratio: Fairfax County (108.7%), Morris County (68.8%), Arlington & Alexandria (68.1%), and Howard County (65.8%).

– LUXURY MONTHLY MARKET REVIEW –

– LUXURY REPORT EXPLAINED –

The Institute for Luxury Home Marketing has analyzed a number of metrics — including sales prices, sales volumes, number of sales, sales-price-to-list-price ratios, days on market and price-per-squarefoot – to provide you a comprehensive North American Luxury Market report.

Additionally, we have further examined all of the individual luxury markets to provide both an overview and an in-depth analysis - including, where data is sufficient, a breakdown by luxury singlefamily homes and luxury attached homes.

It is our intention to include additional luxury markets on a continual basis. If your market is not featured, please contact us so we can implement the necessary qualification process. More in-depth reports on the luxury communities in your market are available as well.

Looking through this report, you will notice three distinct market statuses, Buyer's Market, Seller's Market, and Balanced Market. A Buyer's Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.

By contrast, a Seller's Market gives sellers greater control over the price point. Typically, this means there are few homes on the market and a generous demand, causing competition between buyers who ultimately drive sales prices higher.

A Balanced Market indicates that neither the buyers nor the sellers control the price point at which that property will sell and that there is neither a glut nor a lack of inventory. Typically, this type of market sees a stabilization of both the list and sold price, the length of time the property is on the market as well as the expectancy amongst homeowners in their respective communities – so long as their home is priced in accordance with the current market value.

REPORT GLOSSARY

DAYS ON MARKET: Measures the number of days a home is available on the market before a purchase offer is accepted.

LUXURY BENCHMARK PRICE: The price point that marks the transition from traditional homes to luxury homes.

NEW LISTINGS: The number of homes that entered the market during the current month.

PRICE PER SQUARE FOOT: Measures the dollar amount of the home's price for an individual square foot.

SALES RATIO: Sales Ratio defines market speed and determines whether the market currently favors buyers or sellers. A Buyer's Market has a Sales Ratio of less than 12%; a Balanced Market has a ratio of 12% up to 21%; a Seller's Market has a ratio of 21% or higher. A Sales Ratio greater than 100% indicates the number of sold listings exceeds the number of listings available at the end of the month.

SP/LP RATIO: The Sales Price/List Price Ratio compares the value of the sold price to the value of the list price.

REMAINING INVENTORY: The total number of homes available at the close of a month.

LUXURY RESIDENTIAL MARKETS

The Luxury Market Report is your guide to luxury real estate market data and trends for North America

Produced monthly by The Institute for Luxury Home Marketing, this report provides an in-depth look at the top residential markets across the United States and Canada. Within the individual markets, you will find established luxury benchmark prices and detailed survey of luxury active and sold properties designed to showcase current market status and recent trends. The national report illustrates a compilation of the top North American markets to review overall standards and trends.

The Luxury Market Report is a monthly analysis provided by The Institute for Luxury Home Marketing. Luxury benchmark prices are determined by The Institute. This active and sold data has been provided by REAL Marketing, who has compiled the data through various sources, including local MLS boards, local tax records and Realtor.com. Data is deemed reliable to the best of our knowledge, but is not guaranteed.