CR&T - The Trend Report 2026

from Cindy A Message

Cindy Raney & Team (CR&T) is pleased to welcome you to The Trend Report 2026: The Resilience of Luxury.

As we reflect on 2025, this report examines the forces shaping the luxury real estate market as it moves into the year ahead. Drawing on research from leading global sources — including Altrata, McKinsey & Company, JamesEdition, and Institute for Luxury Home Marketing — it offers a comprehensive view of luxury buying and selling, spanning financial drivers, buyer behavior, demographic shifts, and local market dynamics.

Resilience has emerged as the defining characteristic of today’s luxury market. Despite economic uncertainty and geopolitical volatility, global real estate investment has risen steadily since 2020 — growing by nearly 30% as of 2025.

This strength is being shaped by a shift in how high-net-worth individuals think about real estate. Increasingly, it is viewed not as a short-term trade, but as a long-term asset — one that preserves wealth, reflects identity, and anchors generational planning. Nowhere is this more evident than in the United States, where real estate remains a core component of affluent portfolios.

At the same time, the structure of the market continues to evolve. U.S. luxury home sales outpaced the broader market in 2025, supported by stable price appreciation and sustained demand. A historic transfer of wealth is also underway, with trillions in assets — including a significant share of real estate — set to change hands over the coming years.

Against this backdrop, access to clear interpretation matters. As a Luxury Property Specialist affiliated with the Coldwell Banker brand and the Coldwell Banker Global Luxury program, CR&T offers access to proprietary market intelligence, global wealth insights, and a real-time, on-the-ground perspective across the luxury landscape.

This report is designed to provide a high-level view of the trends shaping the market — and, more importantly, to help you understand how they may apply to your decisions locally.

We remain confident in the resilience of the sector and stand ready to provide both local expertise and global perspective as you consider your next move.

If you would like to discuss how these trends may impact your property or your plans, we welcome the conversation.

Methodology

The Coldwell Banker Global Luxury® program collaborated with Coldwell Banker Global Luxury® Property Specialists (through the means of a survey conducted in November 2025), the Institute for Luxury Home Marketing, Altrata, McKinsey & Partners, and JamesEdition to provide insights into wealth, real estate, property investment, luxury spending preferences, and emerging trends.

COLDWELL BANKER GLOBAL LUXURY ® PROGRAM

Data regarding amenities in properties sold based on the following years: January-December 2023, January-December 2024, January-December 2025E. For comparative purposes, 2025E totals are projected by annualizing results from the first nine months of the year.

INSTITUTE FOR LUXURY HOME MARKETING

For The Mid-Year Report 2026, the Institute for Luxury Home Marketing analyzed the data for the top 10% of 120 U.S. markets. Data contained is from November 1, 2022, to October 31, 2025, and has been computed by the Institute for Luxury Home Marketing’s data research partner and shared with Coldwell Banker Global Luxury® Program and based on information attained both privately and publicly. The Top 10% is defined as a property in the Top 10% of any given market. These homes (in terms of inventory, solds, or list prices), match or exceed the 90th percentile sold price for homes sold on a monthly basis from November 1, 2022, to October 31, 2025. Closed sales reported later than the monthly analysis period were not included. Property-specific sales records were standardized, inaccurate sale prices were corrected when necessary, and all duplicate records were manually excluded. As a result, statistics available via the source data providers may not correlate to this analysis.

Data is then represented monthly, over five months, and yearly throughout the report, using medians, averages, totals, percentages, and ratios. However, unless otherwise specified, statistics typically presented in this report represent both the monthly median and the average of monthly medians of the respective data. Market Status is an analysis of Sales Ratio and represents market speed and market type: where the sales ratio is 12% or less, it is a buyer’s market. If it is greater than 12% and less than 21% it is a balanced market. Over 21% it is a seller’s market. If greater than 100%, MLS data reported previous month’s sales exceeded the remaining inventory pulled at the end of the month.

ALTRATA

This report presents data on the wealthy from Altrata’s unique and proprietary Wealth-X Database, the world’s most extensive collection of curated research and intelligence on the wealthy. The database provides insights into their financial profile, career history, known associates, affiliations, family background, education, philanthropic endeavors, passions, hobbies, interests, and much more. Wealth-X's proprietary valuation model (as defined by net worth) assesses all asset holdings, including privately and publicly held businesses, and investable assets. The database uses the primary business address as the determinant of a wealthy individual’s location.

The data represented in this report provides a comprehensive analysis and profile of individuals who have a net-worth of at least US$5 million. For comparative purposes, 2025E totals are projected by annualizing results from the first nine months of the year.

JAMESEDITION

This analysis examines buyer inquiry patterns on JamesEdition's global luxury residential listings, comparing activity from January 1 through October 14, 2025, against the equivalent period in 2024 (January 1–October 14). The core metric tracks unique users who submitted property inquiries during each period. Percentage figures reflect each category's share of total inquiries within its respective timeframe. Because luxury properties frequently feature multiple amenities and attributes, category percentages may exceed 100% when aggregated. All data derives from JamesEdition's proprietary platform tracking system, which monitors user engagement across the marketplace's international luxury property inventory.

Disclaimer

©2026 Coldwell Banker. All Rights Reserved. Coldwell Banker and the Coldwell Banker logos are trademarks of Coldwell Banker Real Estate LLC. The Coldwell Banker® System is comprised of company owned offices which are owned by a subsidiary of Anywhere Advisors LLC and franchised offices which are independently owned and operated. The Coldwell Banker System fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. This report was compiled using the data platform of the Institute for Luxury Home Marketing. Data is deemed reliable but not guaranteed for accuracy. The information contained herein has been compiled for informational purposes. The Coldwell Banker® brand is not making any recommendations for action based on the data within this report. Readers are encouraged to engage with their appropriate legal, accounting, and professional counsel before implementing any suggested actions. The Coldwell Banker® brand, the Institute for Luxury Home Marketing, Altrata, JamesEdition, and McKinsey & Company have no liability for errors, omissions, or inadequacies in the information contained herein or for interpretations thereof and shall not be held liable for any claims or losses that may rise from the implementation of the data in this report. The data is subject to change at any time.

The State of Luxury: Key National Trends Shaping 2025

Resiliency is the new luxury benchmark. The luxury market has remained resilient despite economic uncertainty and geopolitical volatility. The absolute dollar value invested globally in real estate has risen consistently each year since 2020. As of 2025, that figure has grown approximately 29.4%.

• Legacy mindset gains ground: Increasingly, luxury real estate is being viewed by high-net-worth individuals less as a speculative asset and more as a cornerstone of identity, stability, and long-term wealth preservation.

• Real estate investment and wealth remain deeply intertwined in the U.S.: Since 2020, wealth has grown 58.2% for affluent individuals with a net worth of over $5 million, which is matched by a 59.9%. growth in real estate investment. Outside the U.S., the picture is much different: wealth rose 30.7%, but real estate investment climbed only 16.3%.

• Stable price and sales appreciation in 2025: The U.S. luxury housing market saw sales growth of 2.9% — nearly double that of the traditional market at 1.7% in 2025. Prices have remained stable, rising approximately 3% year-over-year for single-family and 4% for attached.

• Historic wealth shift is in the heir: Nearly $38.3 trillion in global wealth is expected to change hands over the next decade, with Gen X and Millennials inheriting the largest share. Gen X will be first in line, but millennials will be inheriting the most of any generation over the next 25 years.

• Seismic real estate transfer centered in U.S.: Of the $4.6 trillion in real estate projected to change hands worldwide over the next 10 years, nearly $2.4 trillion will trade in the U.S. alone — accounting for roughly 52% of all global real estate activity. An estimated 65.7% of all property changing hands will come from the very-high-net-worth tier ($5 million to $30 million).

• “Nest investing” mindsets drive luxury home spending growth: As the affluent direct more discretionary dollars toward the home, it is becoming one of the fastest-growing luxury spending categories, projected to rise 4.8% globally and 6.0% for U.S.based individuals by the end of 2025. Among U.S. ultra-high-net-worth households, growth in homerelated spending is expected to exceed the growth in spending on personal luxury goods by 18.5%.

• Turnkey properties still rule, but interest in luxury fixers could be on the rise: Move-in-ready homes remain the top target for affluent buyers. But with turnkey inventory thin and commanding 11-30% higher premiums, it could open the door to smart buyers willing to take on renovations.

• “Living large” is back: The pendulum has swung away from quiet luxury and smaller footprints. Per data from JamesEdition, the leading international luxury marketplace, overall interest in detached homes rose 15% between 2024 and 2025. Inquiries for unique estates, castle-style residences, and land increased yearover-year, meanwhile 5+ bedroom homes accounted for 63.7% of all single-family home inquiries.

• Luxury home “must-haves” now center on multidimensional lifestyle needs: Both survey and data show property attributes that resonate most strongly for affluent buyers include: a premium location and views, turnkey or move-in-ready condition, privacy, community amenities, modern architecture, outdoor living, wellness-focused interiors, home offices, multigenerational suites, secure parking, climatecontrolled comfort, and emerging expectations around sustainability, climate resilience, and smart-home technology.

The Difference Representation Great Makes

Most people believe real estate is about timing the market.

In reality, it’s about controlling the variables you can.

In Fairfield County, inventory is constrained, buyers are selective, and pricing is unforgiving. In this environment, outcomes are not determined by luck or headlines. They are determined by preparation, positioning, and negotiation discipline.

Great representation does three things:

• It reduces avoidable risk.

• It increases negotiating leverage.

• It improves the probability of an exceptional outcome.

For sellers, that means pricing strategically — not optimistically. It means presenting your home in a way that creates urgency, not just visibility. It means managing the psychology of buyers, not reacting to it.

For buyers, it means clarity in competitive situations. It means understanding value beyond the asking price. It means structuring terms that win without overpaying.

Luxury is not a price category. It is the standard by which decisions are made, details are managed, and negotiations are executed.

In markets like ours, representation doesn’t just influence the experience. It influences the outcome.

How Cindy Raney & Team Stands Out

Buying or selling a home at this level is not a transaction. It is a sequence of high-impact decisions.

Every pricing choice sends a signal. Every marketing decision shapes perception. Every negotiation either strengthens or weakens your position. Most agents react to the market. We study patterns within it.

At Cindy Raney & Team, our advisory model is built on three disciplines:

ANTICIPATION

We analyze local data continuously and understand how national trends translate — or fail to translate — to Fairfield County. Our clients are rarely surprised.

POSITIONING

We don’t simply “list” properties. We design market entries. From narrative to pricing architecture to exposure strategy, every detail is engineered to create leverage.

NEGOTIATION

We negotiate deliberately, not emotionally. Whether securing

multiple offers for a seller or structuring winning terms for a buyer, we focus on maximizing outcome — not simply reaching agreement.

For sellers, this means extracting full market value - not leaving money on the table because of mispricing, poor staging, or weak negotiation.

For buyers, it means accessing opportunities through relationships, evaluating value with discipline, and competing intelligently in constrained inventory environments.

Our reach extends beyond Fairfield County. As one of only 76 professionals worldwide in the International Luxury Alliance, we maintain direct relationships across 48 global markets. These connections expand the buyer pool and create off-market opportunities that are simply not visible to the broader public.

We are not in the business of transactions. We are in the business of outcomes.

And in a market where small strategic differences can translate into significant financial impact, that distinction matters.

Specializing in Fairfield County’s Luxury Markets

jason h. mudd Managing Partner & Market Strategist

talia rossman Director of Brand & Creative

jess christ Real Estate Advisor

Meet the Team

cindy raney Founder and Global Luxury Specialist International Luxury Alliance (ILA) Member

margaret buddenhagen Sales & Client Engagement Specialist

selena Huertas Marketing & Brand Associate

chris Ahlgrim Real Estate Advisor

gabby gould Sales Coordinator & Real Estate Advisor

Adrienne Schoetz Real Estate Advisor

HOULAHAN Real Estate Advisor Fairfield County & South Florida

regan flynn Executive Partner to Cindy Raney

ginny moffitt Real Estate Advisor

Stretton Real Estate Advisor

Unmatched Knowledge & Expertisefor your Advantage

In today’s competitive luxury market, who you choose to guide you can make all the difference. Our deep understanding of Fairfield County’s diverse communities isn’t just impressive – it’s powerful. It allows us to connect you with the right buyers, the right properties, and the right opportunities, faster and more strategically. At Cindy Raney & Team, we believe expertise only matters when it benefits you. Whether it’s leveraging our market insights to position your home for top-dollar offers or tapping into our local and global networks to uncover off-market gems, our knowledge becomes your competitive edge. We combine relentless work ethic with smart strategies to simplify your process, reduce uncertainty, and help you achieve your goals with confidence. But don’t just take our word for it. Here’s what recent clients have said about how we’ve made a difference in their real estate journey:

“Working with Cindy Raney and her team was an absolute dream. They’re a total machine when it comes to getting things done, but with such chic style, grace, and warmth. We felt completely taken care of every step of the way, and Cindy always took the time to walk us through things clearly and thoughtfully. No question ever felt like a burden, and they were always available to connect, which gave us real peace of mind. We couldn’t imagine being in better hands - professional, polished, and truly caring from start to finish. They set the bar high and we will honestly miss seeing them — especially my daughter!”

“We loved working with Cindy, Margaret, and the entire team at Cindy Raney & Team to sell our home in Weston. We had long dreamed to move to South Carolina. We had previously listed with another agent and felt it was time for a change after months on the market with no serious offers. I did my research and came across another home in town that had a similar situation, and Cindy sold it quickly. Cindy came in, suggested professional staging, actually increased the price — and we ended up selling at asking with multiple offers. They really know how to market and sell the lifestyle of a home, and they’re a team that listens, communicates, and works with you every step of the way. From day one I saw a dramatic difference between our prior agent and Cindy and her team. They worked at lightning speed and always kept us up-to-date, we sold in under 2 weeks. We were against the clock as our goal was for our children to move in order to start the new school year. I firmly believe if it wasn’t for them, I would not have sold my house and had the opportunity to move to our new home. I can’t thank them enough and highly recommend them, you can’t find a better team! Don’t waste your time anywhere else, Moving a stressful enough, and they make it so much easier.”

“Cindy and the team did an amazing job of selling our house. They moved fast in getting us organized and were meticulous in the execution of the little details that needed to be done pre-listing. Once on the market it was like watching a well oiled machine in action. Very impressive. And through it all, Cindy was there for us 24/7 to comfort, advise and help. We don’t plan on moving again anytime soon but if we did, without question, we would use her and the team again. Absolutely stellar service!!”

“Cindy helped us find our forever home in Southport, CT and once we were settled, she and her team helped us sell our first home in Westport, CT. The search took a few years because we really wanted this next move to be our last, but Cindy was incredibly patient and never let us settle for anything less than the right fit. When it came time to sell, our home needed a little work, and they encouraged us to stage it to help buyers see the potential. That advice, and their creative marketing approach, made all the difference. We ended up with a bidding war and sold for more than we ever imagined. If you’re buying or selling in Fairfield County, call Cindy Raney & Team. Cindy, Margaret and the whole team — they’re simply the best!”

“Our family moved from out of state and were primarily interested in moving to Fairfield. Cindy, Margaret and Talia are very knowledgeable about the area and helped us find walkable neighborhoods suited to our family with young kids and a dog. After looking at only 3 houses we were ready to put in an offer. Cindy helped guide us on the a winning offer, beating multiple other offers including some that were higher.”

“Cindy and her team were incredible in helping us find our dream home. They were always available if we had questions, always willing to meet, and showed us multiple homes so we could find the right fit for our family. Now that we’ve moved they’ve shared their recommendations on favorite places in the neighborhood (thank you, Margaret!) and we feel so lucky to have joined such a wonderful community. We highly recommend them to anyone looking for an experienced, thoughtful and engaging team to find your next home!”

Power in Numbers

The Coldwell Banker® brand is a true global force, with the power to showcase exceptional properties and reach affluent buyers around the world. Through a master franchise network located in 45 countries, we are able to provide unmatched exposure for our clients’ properties.

96,000+

2,600+

45 Agents Offices Countries & Territories

total

$11B $250M $133M closed SALES

2,432

Strategic Property Marketing

CR&T has partnered with Coldwell Banker Global Luxury® to provide an unmatched selling experience for their clients. This partnership provides their clients with access to the most powerful global network in real estate. Coupled with their longstanding relationships in Fairfield County, New York City, and beyond, their clients’ properties will get unmatched exposure worldwide and locally to the most qualified buyers.

The Coldwell Banker Global Luxury® program redefines the world of luxury real estate marketing. The prestige of the Coldwell Banker® name, combined with state-of-the-art technology, bespoke marketing strategies and one of real estate’s most robust global networks encompassing 96,000 independent sales and associates in 45 countries and territories, culminates in extraordinary representation that crosses oceans, continents and language barriers.

In 2023, Cindy became a member of the exclusive International Luxury Alliance (ILA), a group of 76 elite professionals in 48 key markets dedicated to providing exceptional expertise and results in the world of luxury real estate. Not only does this affirm her position as a renowned expert but ensures her clients' properties and goals achieve maximum exposure and connectivity through a carefully curated strategic alliance.

Cindy Raney & Team can instantly promote your property to the International Luxury Alliance. The Alliance is a distinguished network of some of the world’s foremost real estate professionals, dedicated to serving the most discerning luxury clientele. Collectively, the Alliance generates over $11 billion in annual sales, with an average transaction value of $4.5 million.*

The Cindy Raney & Team | Coldwell Banker Global Luxury® Advantage

• TARGETED ADVERTISING

Targeted wealth marketing to the world’s most affluent individuals through an exclusive relationship with WealthEngine.

• EXCLUSIVE markET INSIGHTS

Access to exclusive luxury market intelligence and metrics.

• UNPARALLELED QUALITY

MARKETING

Exceptional property marketing designed to attract attention and showcase the home’s most distinctive qualities.

• COMPREHENSIVE STRATEGY

Comprehensive marketing strategy and exclusive resources to ensure a property is seen by the widest possible audience of qualified buyers.

• IN-HOUSE PRESS TEAM

Influential media relationships with top-tier outlets such as The New York Times, The Wall Street Journal, Forbes, and CNBC.

• PROMINENT ONLINE PRESENCE

Immediate syndication through a comprehensive network of prominent real estate websites.

• GLOBAL EXPOSURE

Powerful global network to provide extensive exposure for listings around the world.

• LUXURY NETWORKS & ALLIANCES

Our marketing strategy is a powerful force that positions properties in front of an extensive and invaluable database of prospective buyers, investors, and real estate professionals.

In Review

CINDY RANEY

Founder, Cindy Raney & Team

Global Luxury Property Specialist

We call this year’s report The Resilience of Luxury because the market has continued to hold its ground despite geopolitical, economic, and trade policy uncertainty.

The luxury real estate market has not mirrored the broader housing market, where affordability pressures and higher borrowing costs have kept activity constrained. For example, the National Association of REALTORS® (NAR)1 reported a modest 1.7% increase in existing-home sales for the entire real estate market as of October 2025. But when isolating the top 10% of the market, the Institute for Luxury Home Marketing (“the Institute”) found that luxury sales rose 2.9% year-over-year — nearly double.

HOME SALES GROWTH | JANUARY-OCTOBER 2025

While overall luxury home sales activity has slowed compared to the peaks of 2020-2022, the market appears to be settling into a more balanced state — returning to what we consider to be “normal.” Some may be tempted to call this a downcycle, but what makes this moment unique is that it does not resemble past downturns. We are seeing steady price appreciation, consistent sales velocity (especially for single-family homes), and a luxury buyer pool that remains both active and well-capitalized.

In a more nuanced way, Fairfield County both mirrors and diverges from the direction of the broader luxury market. Sales volume rose only 1.6% year over year — however, this more modest gain is closely tied to tightening supply. While overall luxury inventory expanded by more than 14% in 2025, Fairfield County inventory declined by 2.5%, naturally limiting the pace of transaction growth. Demand, however, remains firm. Homes are selling at 102.5% of asking price, up from 100.8% in 2024, with price appreciation continuing in markets where constrained inventory is sustaining upward pressure.

That being said, after analyzing this year’s trends and insights from the Institute, Altrata, McKinsey, and JamesEdition, one finding was clear: today’s affluent consumers are behaving fundamentally different from past cycles.

WHAT’S DRIVING THE RESILIENCE FACTOR?

Many of the dynamics that kept the luxury market strong, in the overall market as well as Fairfield County, in 2025 now underpin the trends emerging for 2026.

Real Estate as a Wealth Cornerstone

Economic uncertainty may form the backdrop of today’s world, but luxury real estate continues to show its strength as a mature asset class. The home now sits alongside private equity, art, and other long-term holdings within well-diversified portfolios. This institutional approach continues to lend stability to the sector.

A Capital-Driven Market

Affluent individuals, whose wealth portfolios tend to be more diversified and supported by ample capital, are often better insulated from economic ups and downs. Luxury real estate remains largely capital-driven and far less dependent on financing conditions. In other words, liquidity continues to power the luxury housing market.

Buyers Are Active, But More Discerning Than Ever

Today, buyers have simply become more selective, with real estate decisions increasingly rooted in long-term strategy, not the rapid-appreciation expectations that once fueled the market.

These dynamics are playing out in the market in several different ways, including:

Longer decision melines and increased property comparisons

Strong preference for turnkey homes with wellness, sustainability, and tech-forward features2

A rising presence of millennial and Gen X buyers, supported by intergenera onal wealth transfers 3

A con nued edge for cash buyers, who can bypass financing fric on and nego ate with speed4

Affluent buyers have demonstrated strong confidence when a property aligns with their priorities — whether it’s multigenerational living, wealth preservation, wellness, geographic diversification, or lifestyle enhancement. This dynamic is accelerating as generational wealth transfer brings more Gen X and millennial buyers into the luxury market. Their influence is sustaining demand for homes that meet their specific criteria and is likely to reinforce the discerning buying behavior we’re already seeing.

This new level of intentionality could actually bolster the luxury market, creating a healthier balance between pricing expectations and real market demand. Buyers are setting higher standards, and they’re rewarding properties and agents who deliver clarity, transparency, and strategic value.

National and Fairfield County data echoes these trends. As demand for single-family homes increased in 2025, so did the price buyers were willing to pay relative to list price — signaling stronger alignment with seller expectations and a clear recognition of value in this segment.

When the Economy Moves, Luxury Moves Differently

There’s little doubt that interest rates, equity volatility, tariffs, insurance pressures, and construction costs continue to influence the luxury landscape to a degree.

of resources.

FAIRFIELD COUNTY VS. NATIONAL | SALE-TO LIST PRICE RATIO

Insurance challenges in climate-sensitive markets, such as coastal California and Florida, have also impacted where and how affluent households invest. Yet despite these outside forces, demand for high-quality luxury homes remained firm.

The key evolution is that affluent buyers have decoupled short-term macro noise from long-term real estate strategy. Instead of reacting to the news cycle, they’ve tuned themselves to their personal economic stability, long-term financial plan, and a desire for high-quality living environments. In this fashion, luxury real estate has become more of a lifestyle asset than a cyclical financial one. Even when macro conditions shift, buyers with strong liquidity and a strategic mindset treat volatility as an opening to secure standout properties, rather than a deterrent.

MARKET DYNAMICS TO WATCH IN 2026

Luxury home demand is expected to continue at a steady pace but will remain highly intentional. Affluent buyers are approaching the market with greater clarity about what they want from their next residence — not only as a financial asset but as an essential part of their lifestyle.

The buyer pool is also becoming more strategic and globally minded as they seek to broaden their geographic horizons. Many affluent consumers are comparing opportunities across borders and time zones, weighing lifestyle preferences alongside tax strategy, climate considerations, insurance stability, and long-term value potential.

This widening global perspective may lead to growing variability across local markets. Some areas, such as Fairfield County, are likely to maintain seller strength due to strong wealth migration and scarcity of land, while others shift toward balance as new inventory arrives. Neighborhood-level dynamics are likely to matter more than national narratives.

If inventory keeps rising, the market could see a clearer split between move-in-ready homes and properties requiring improvement. Design-forward, move-in-ready homes that align with today’s aesthetics and wellness priorities will continue to attract strong interest. Meanwhile, older or less updated properties may experience longer decision cycles. This environment could also create opportunity: value-driven buyers who are priced out of new construction may show increased openness to renovations, particularly in supply-constrained coastal and gateway markets.

THE BOTTOM LINE

As we move further into 2026, navigating this increasingly complex market environment will be critical. Both buyers and sellers stand to benefit from a measured, long-term mindset — one centered on value, quality, and the agility to act when the right opportunity presents itself. For those attuned to the shifting preferences defining today’s luxury landscape, the year ahead offers meaningful opportunity.

Cindy Raney & Team will continue to track these evolving dynamics closely, ensuring our clients remain informed, strategically positioned, and confident in every decision they make in this next phase of the luxury market. 

The 1 TREND Stability

Effect

Steady price appreciation, sustainable supply growth, strong demand for single-family homes, and selectivity among buyers and sellers signal a steadier 2026 ahead.

After several years marked by sharp swings in demand, tight inventory, and economic uncertainty, the luxury housing market is entering a new era in 2026 — one marked by stability.

At the end of 2025, national luxury home prices posted steady yearover-year gains, inventory growth improved, and sales remained resilient, led by strength in the single-family segment. It’s a notable departure from the volatility of the past two years, when the market was still finding its footing after the pandemic-era frenzy.

“While the Fairfield County luxury market can certainly be described as stable, its stability is taking shape somewhat differently than the national profile. Although home prices have continued to rise and sales have remained resilient, inventory growth has yet to see any meaningful improvement. What we’re experiencing is a market firmly driven by demand — particularly for quality properties in locations that truly align with today’s discerning buyers and their lifestyle and amenity aspirations,” stated Cindy Raney, Founder of Cindy Raney & Team.

While this more balanced landscape has created a more reliable and predictable environment for affluent buyers and sellers in 2026, it has also introduced a new degree of selectivity on both

sides of the transaction both nationally and in Fairfield County. Buyers are taking more time, weighing long-term value with greater scrutiny. Sellers, often under no obligation to move unless conditions are ideal, are adopting a similar long-view approach. Herein lies the double-edged sword of the luxury world: the very fundamentals that make this sector more stable and less reactive than the broader market — i.e., most participants are financially secure, well-insulated from external pressures, and free to make decisions on their own timelines — also reduce the sense of urgency surrounding transactions.

“While we are seeing more selectivity in Fairfield County, it’s increasingly a tale of two price points,” says Jason H. Mudd, Managing Partner at Cindy Raney & Team. “In the mid-luxury segment, constrained inventory continues to drive strong demand and over-asking sales. At the ultra-high end, however, buyers are far more discerning, and aspirational pricing is meeting greater negotiation, often resulting in transactions below asking.”

These factors will have a steadying effect on the market going into 2026. But to understand where this new era is heading, it’s essential to look back at how prices, inventory, and sales performed in 2025 — and how evolving buyer and seller behaviors will shape the year ahead.

$8,000,000

MEDIAN SOLD PRICE GROWTH | 2023-2025

$3,000,000

$2,000,000

$1,000,000

Source: The Institute for Luxury Home Marketing and Fairfield County's MLS as of February 1st, 2026

PRICES HOLD FIRM

In 2025, pricing across the luxury market held remarkably steady. According to the Institute for Luxury Home Marketing (the “Institute”), the median sold price for single-family properties rose 3% year-over-year from 2024 and 9.3% compared to 2023 — evidence of continued strength, even as the pace of appreciation is moderating compared to the pandemic years.

In Fairfield County, prices in 2025 appreciated by 3.9% year-overyear and 8.7% compared to 2023, with substantial increases in the New Canaan, Greenwich, and Fairfield/Southport markets.

Detached homes continue to benefit from the lifestyle priorities that have defined the luxury buyer for the past several years — privacy, space, and long-term functionality. These preferences help keep prices firm, even in markets where inventory expanded. Historically, buyers in this category also tend to be less rate-sensitive, more decisive, and more focused on turnkey quality, all of which contribute to stable pricing in the single-family segment.

“These preferences closely reflect what we’re seeing from buyers in Fairfield County,” shared Raney. “They are willing to pay top dollar for homes that truly meet their expectations, but they remain highly discerning when it comes to value.”

Across the luxury real estate market, quality has emerged as the defining market differentiator. Turnkey, modern, and lifestylealigned properties continue to command premium pricing, while

dated homes face increasing pressure. The market overall is behaving with greater maturity and balance: prices are being influenced less by scarcity and more by fundamentals, localized demand, and long-term buyer priorities.

INVENTORY DIVERGENCES AND NUANCES

One of the most notable shifts across the U.S. in 2025 has been the broad expansion of luxury inventory, reversing the years of scarcity that defined the post-pandemic market.

Both single-family and attached homes recorded meaningful yearover-year gains. Average monthly inventory for single-family homes rose 14% compared to 2024 and 31.9% compared to 2023, while attached properties followed a similar trajectory, increasing 15.6% year-over-year and 39.7% over two years.

However, this national trend stands in sharp contrast to conditions in Fairfield County.

“Inventory levels in Fairfield County did not increase in 2025 — they declined by 2.5% compared to 2024, with towns such as Darien, New Canaan, and Wilton experiencing inventory drops of 30% to 40%,” shared Mudd. “But the true reflection of our inventory constraints lies in the significant gap between 2019 and the last few years — and it is this lack of increase that continues to present the greatest challenge for buyers.”

Typically, shifts in supply of this magnitude would translate into

FAIRFIELD COUNTY'S LUXURY MARKETS INVENTORY LEVELS CONTINUE TO DECLINE

broad pricing pressure. In 2025, however, inventory played a more nuanced role. What matters most was not how much inventory existed, but the type of inventory available. Well-located, move-inready homes attracted strong interest and competitive offers, while properties lacking quality updates or lifestyle-aligned features sat longer and underwent more frequent price adjustments.

The result was a market moving toward its most balanced state in years, one where supply and demand became more closely aligned, while pricing remained supported by strong fundamentals and an increasingly discerning luxury buyer.

“In Fairfield County, we saw similar demand patterns, with prices remaining strong for well-located, move-in-ready homes offering highly sought-after amenities — but the divergence across price points became more pronounced,” explained Raney. “Midluxury properties in the $2–$4 million range frequently attracted multiple offers and sold over asking, while homes above $4 million experienced more negotiation, despite persistently low inventory.”

This contrast between the national market and Fairfield County highlights a critical shift: pricing stability is no longer driven solely by supply levels, but by a growing segmentation of quality.

The luxury market is drawing a sharper line between homes that deliver meaningful lifestyle value and those that fall short. While inventory may be rising in some regions, truly desirable properties remain limited, preventing widespread price softening and reinforcing strength at the top tier.

At the same time, today’s buyers are more informed and more discerning than ever. Equipped with deeper data, cross-market insights, and a clearer vision of how a home should support their lifestyle, they are evaluating value with far greater precision. This heightened scrutiny is keeping pricing grounded, rewarding properties that align with modern luxury expectations, and creating greater resistance for those that do not.

STRONG DEMAND FOR SINGLE-FAMILY HOMES

In 2025, buyer preferences shifted decisively toward single-family luxury homes, with privacy, space, and lifestyle flexibility emerging as top priorities for affluent buyers. This trend reflects a broader evolution in luxury living, where wellness, access to nature, and long-term usability continue to shape purchasing decisions. The pattern is evident across both North America and Europe. Knight Frank’s Wealth Report 20251 found that 56% of high-networth individuals favor detached homes, citing space, privacy, and adaptability as key drivers. Data from the Institute further reinforces this momentum: as of October 2025, single-family home sales increased by 3.7% compared to 2023 and 4.2% over 2024, marking a clear and sustained rebound from last year’s modest dip. Detached homes have once again become the market’s primary growth driver.

This strength is equally visible in Fairfield County. Despite a 2.5% decline in available inventory, luxury sales volume rose by 1.6% compared to 2024. While some individual markets recorded declines in total sales, these shifts must be viewed in the context of sharply reduced supply. In New Canaan, for example, inventory dropped by 42.4% while sales declined by just 4.8%. Similarly, Darien saw inventory fall by 41%, yet sales decreased by only 5%.

In proportional terms, demand has remained notably resilient.

The continued dominance of single-family homes also signals a deeper psychological shift among affluent buyers. Today’s purchasers are placing greater emphasis on space, privacy, and long-term optionality - needs that single-family properties are uniquely positioned to meet. Features such as expansive outdoor areas, flexible multi-use interiors, and retreat-like environments have moved from desirable to essential, redefining the parameters of modern luxury.

Condos, meanwhile, continue to perform well in global gateway cities and select resort markets, but buyer behavior has become more selective. Factors such as fees, density, operating costs, and overall building health, once secondary considerations, now play a central role in decision-making.

This dynamic reflects a broader divide emerging across the luxury landscape: a growing distinction between “practical luxury” and “positional luxury.” Practical luxury is rooted in day-to-day livability, functionality, and long-term utility — qualities most

Sales Held Steady in 2025 Amid Declining Inventory

often associated with single-family homes. Positional luxury, by contrast, emphasizes prestige, location, architectural significance, and cultural cachet — strengths more commonly found in highend urban and resort condominiums.

SELLERS EXERCISE RESTRAINT

The supply side of the luxury market evolved significantly in 2025. Sellers in 2025 showed more willingness to be strategic about timing. They were less likely to list unless personal circumstances or strong market signals justified action. And they began to price homes more realistically, responding to buyer expectations for quality rather than testing the market with aspirational premiums.

“The hesitancy to list has certainly been prevalent in Fairfield County, resulting in fewer new listings entering the market during 2025,” shared Raney. “Not because demand weakened, but because sellers were often waiting for confirmation of interest rate cuts and a more stable financial backdrop.”

This restraint is reflected in the continued strength of the sales ratio — a measure of homes sold relative to available inventory. Over the past three years, Fairfield County’s sales ratio has remained above 60%, well beyond the 21% threshold that defines a seller’s market — effectively meaning that for every 10 homes listed, approximately six are selling. Among the highlighted markets, Darien and Wilton experienced the most pronounced inventory shortages in 2025,

which when combined with sustained buyer demand, posted the highest sales ratios, at 82.6% and 73.9% respectively.

“Local dynamics are doing more of the heavy lifting in the luxury segment,” shared Raney. “Performance is increasingly driven by a blend of factors — both longstanding and emerging — including local economic strength, location desirability, value alignment, amenities, and lifestyle appeal. For example, Wilton, with a median sold price of $2.6 million, continues to generate strong demand due to its relative affordability, while Darien, where the median sold price is closer to $6 million, has extremely limited inventory due to its immense desirability.”

Seller restraint has also acted as a stabilizing force nationally, even as inventory has expanded in many U.S. luxury markets. Listing behavior has helped preserve pricing discipline and maintain equilibrium. Increasingly, sellers are behaving more like portfolio managers than reactive participants. Decisions are shaped by liquidity considerations, tax exposure, capital gains implications, and overall cost-of-capital visibility. Properties that do come to market are typically more thoughtfully prepared and strategically positioned, creating a more curated and less speculative luxury environment.

“The Fairfield County market remains firmly in seller’s market territory, with demand continuing to outpace supply,” stated Mudd.

SALES RATIOS | 2023-2025

Strong Seller’s Market Persists as Sales Turnover Remains High

“However, despite this advantage, most sellers are more realistic in how they prepare and price their homes. They recognize that buyers are equally strategic — particularly at the very high end — and far less willing to compromise on their expectations.”

Across the U.S., 2025 has shown that sellers who anchored their timing and pricing to current demand conditions have outperformed those still tethered to pre-2022 market assumptions.

LUXURY: MARCHING TO ITS OWN BEAT IN 2026

If the trends of 2025 hold, the market will be moving into 2026 with a level of stability it hasn’t enjoyed in years. Prices are holding firm. Inventory is growing at a sensible pace. Single-family homes continue to anchor sales activity. And both buyers and sellers are operating with a long-term mindset rather than reacting to shortterm noise.

“The luxury market isn’t reacting — it’s recalibrating,” explained Raney. “What we’re seeing heading into 2026 is refinement. Buyers and sellers alike are making decisions through a longer-term lens, and that intentionality is reinforcing stability at the high end.”

These fundamentals will shape the coming year, along with several emerging forces: lifestyle-driven decision-making (and less focus on price), widening gaps between high-quality and outdated inventory, deeper demand for single-family homes, increasing global search behavior, and more localized, neighborhood-level market conditions. These forces are likely to cement a market already on solid ground.

“As the market matures, success will depend less on timing and more on positioning,” added Mudd. “The gap between exceptional properties and everything else is widening, and that’s where advisory guidance becomes critical — understanding not just pricing, but quality, location, and long-term value.”

Underpinning all of this is the fact that real estate has long been a core part of high-net-worth portfolios, and it is now evolving into a more complex hybrid asset that blends wealth preservation with lifestyle return and long-term flexibility. It’s being evaluated not just as a store of value, but as a vehicle for quality of life, legacy planning, and multi-generational utility.

“For many affluent households, real estate is no longer viewed as a standalone purchase,” Raney noted. “It’s part of a broader wealth and lifestyle strategy — blending investment discipline with how and where they want to live. That mindset is helping anchor the luxury sector as we move into 2026.”

That evolution could further amplify the stability effect in the highend sector this year, and also heighten the need for advisory-style representation. With buyers and sellers approaching decisions more intentionally, Cindy Raney & Team are ready to offer strategic perspective, nuanced local market intelligence, and a deeper understanding of how affluent households will live and invest in 2026 and beyond. 

Becomes More Real Estate Investment

2 TREND Strategic

Amid economic uncertainty and market volatility, the wealthy are doubling down on luxury real estate.

VHNW - Net worth between $5 million and $30 million

UHNW - Net worth $30 million+

Equity markets have cooled, and borrowing has gotten more expensive. Uncertainty is in the air. Yet one investment class continues to hold its ground: luxury real estate. Even as parts of the broader housing market cool, affluent individuals remain deeply committed to property ownership — viewing it not only as a tangible asset, but as a cornerstone of long-term wealth strategy.

Why does real estate continue to command such confidence among the wealthy? To answer that question, we drew on Altrata’s Wealth-X data from 2020 to 2025 to uncover how global wealth growth, investment behavior, and economic forces have shaped this ongoing preference for property.

The findings reveal that, despite volatility in equity markets and investment performance, both the very-high-net-worth ($5-$30 million), and ultra-high-net-worth ($30 million+) segments have steadily expanded their real estate holdings since 2020.

“Even in periods of economic turbulence, real estate continues to serve as a stabilizing force in wealth portfolios,” said Maeen Shaban, Director of Research and Analytics at Altrata. “Price appreciation, strong demand, and growing direct investment by private investors have supported steady nominal growth since 2020.”

BEHIND THE WEALTH SURGE

Global wealth has climbed dramatically over the past five years, fueling the continued confidence in real estate among affluent buyers. According to the Wealth-X data prepared by Altrata, total wealth among the very-high-net-worth (VHNW) individuals rose from $33.9 trillion in 2020 to $47.7 trillion in 2025 and for ultra-high-net-worth group (UHNW) from $42.7 trillion to $59.8 trillion over the same period.

In the United States this translated into $12.6 trillion in 2020 to $20 trillion in 2025 for the VHNW — a staggering 57.8% increase. The rest of the world also saw healthy gains, up 30.2% over the same period. Among the UHNW group, wealth in the U.S. expanded by 58.5%, compared to 31% globally.

The sharpest rise occurred in 2024, when both wealth tiers saw exceptional gains. Among VHNW individuals, total wealth surged 21.2% in the U.S., while UHNW individuals saw a comparable 19.9% increase.

The momentum was fueled by a robust equity rally that year — the S&P 500 climbed 23%, adding trillions in paper gains to investor portfolios, per UBS’s Global Wealth Report 2025.1 A strong U.S. dollar, improved household balance sheets, and steady housing appreciation further amplified the effect. In total, the U.S. created an estimated 379,000 new millionaires in 2024 alone.

Source: Wealth-X, An Altrata Company 2025

HOW REAL ESTATE MOVES AGAINST THE MARKET

As Shaban explains, the relationship between market performance and real estate investment has shown an inverse correlation in recent years. When stock market performance and Gross Domestic Product (GDP) growth accelerated, the proportional share of wealth held in property declined slightly — most notably in 2021, when equities surged and real estate value percentages did not see a similar increase, despite the surge in properties being bought during these years. Conversely, when global equity markets corrected in 2022, the percentage value of real estate grew substantially to 27.7% for VHNW investors, before settling back to 22.9% in 2025 as financial markets recovered. A similar pattern appeared among UHNW individuals, whose real estate exposure peaked at 8.7% in 2022 before easing to around 7.2% in 2025.

INVESTMENT IN REAL ESTATE MIRRORS WEALTH GROWTH IN U.S.

Source: Wealth-X, An Altrata Company 2025

Estate Wealth

As equities recovered strongly in 2023 and 2024, total wealth expanded faster than property values, reducing real estate’s relative weight within portfolios. But that doesn’t mean the asset lost favor — quite the opposite. Despite lower proportional allocations, the absolute dollar value of real estate holdings has continued to rise year after year.

In the U.S. for those with $5 to $30 million in net worth, total property wealth climbed from $2.7 trillion in 2020 to $4.3 trillion in 2025 — a 60% increase that mirrors overall wealth gains. Among UHNW households, holdings rose from $800 billion to $1.2 trillion, a 59.7% jump, suggesting that the most affluent are not only holding steady but deepening their commitment to tangible assets.

Source: Wealth-X, An Altrata Company 2025

Prime residential prices posted steady gains through 2022-2023, led by major global cities such as Miami, Los Angeles, and New York. By 2025, both VHNW and UHNW individuals held record levels of property wealth in nominal terms, even as their proportional weight declined amid broader wealth expansion.

When U.S. equity markets corrected in 2022, the percentage value of real estate grew substantially to 27.3% for VHNW investors, before settling back to 21.8% in 2025 as financial markets recovered. A similar pattern appeared among UHNW individuals, whose real estate exposure peaked at 7.1% in 2022 before easing to 5.7% in 2025.

Outside the U.S., growth was more modest. Real estate investments rose by just 16.1% among VHNW individuals and 16.7% among UHNW — likely a more accurate reflection of the diversity of global investors' cultural and structural differences. While wealth holders in countries like the U.K., Australia, and many in the EU tend to favor direct ownership, many others in countries such as China and Japan remain more diversified across public and liquid assets.

The percentage allocation of real estate investment outside of the U.S. peaked in 2022, around 28% for VHNW and 9.5% for UHNW individuals, as falling equity values and stable property

Source: Wealth-X, An Altrata Company 2025

prices boosted real estate’s relative weight. Although global wealth contracted that year amid inflation and rate hikes, property values held firm, underscoring real estate’s resilience as a store of value.

Similar to the U.S. by 2025, as inflation eased and equity markets rebounded, real estate’s share returned to near pre-pandemic levels (about 23.6% for VHNW and 8.1% for UHNW investors).

Still, total property holdings reached record highs: VHNW real estate wealth rose from $5.6 trillion in 2020 to $6.5 trillion in 2025, and UHNW assets climbed from $2.6 trillion to $3 trillion. Steady price gains in major global cities and continued capital inflows

reinforced real estate’s long-term role in wealth preservation, even as portfolios diversified back toward financial assets.

WHY THE WEALTHY STAY INVESTED

Sustained private capital flows into real estate reflect continued confidence in property as a store of value and inflation hedge, notes Shaban.

“For ultra-high-net-worth individuals and family offices, property ownership provides stability, diversification, and a hedge against inflation,” he said. “It also offers strategic advantages, whether it’s tax planning, residency, or intergenerational wealth preservation.”

GROWTH OF REAL ESTATE WEALTH

This diversification remains key. Real estate allows affluent investors to balance exposure across asset classes, providing a tangible counterweight to more volatile markets. As the Knight Frank Wealth Report 20242 notes, UHNW investors increasingly view prime property not just as a lifestyle purchase, but as a legacy asset.

Hugh Dixon, Partner and Head of Private Office, New York, echoes this sentiment: “I would recommend spreading the investment across different property types and geographic locations to minimize risk. Explore emerging markets with potential for growth and development; while ensuring you have a foothold in stable and established markets with a history of steady appreciation.”

WHERE THEY’RE INVESTING

In the United States, robust institutional real estate markets, a strong dollar, and sustained global demand for dollar-based assets continue to attract both domestic and international capital. Prime cities such as Miami, Los Angeles, and New York remain magnets for trophy properties and cross-border buyers seeking stability and long-term value, Altrata has consistently found.

Globally, however, the 2024-2025 period marked a notable shift. A 2025 report3 by Altrata ranked the top 20 cities where ultra-highnet-worth individuals are purchasing second homes in 2025. While familiar names like New York and Hong Kong still lead the list, destinations like Dubai, Lisbon, and Naples, Florida are drawing affluent investors looking for diversification, favorable residency laws, and tax-efficient ownership structures.

These emerging locations could signal a shift in how the wealthy are thinking about property ownership. “Increasingly, they’re using real estate as a leveraged asset — a way to gain legal footholds in key jurisdictions, diversify tax exposure, and secure homes that double as investment vehicles and escape plans,” the report noted. We cover this in more depth in Trend 3 – The Growth of New Resilient Markets.

FINANCIAL FORCES POWERING GLOBAL LUXURY REAL ESTATE

If lifestyle and mobility are reshaping where the wealthy buy, financial strategy continues to influence how they buy. The same macro forces that have fueled global wealth expansion — strong equity markets, a resilient dollar, and adaptive financing — have also underpinned continued demand for luxury real estate worldwide.

Several key financial dynamics kept the sector strong, according to Shaban:

Cash remains king.

Elevated mortgage rates pushed many a luent buyers toward all-cash deals for privacy, speed, and nego a on power.

Equity gains fueled purchases.

Record stock market performance translated directly into liquidity for new real estate acquisi ons.

Private credit filled the gaps.

Family o ces and private lenders provided bespoke financing when tradi onal mortgage op ons ghtened.

Tax and residency incentives — from Portugal’s golden visas to the U.S. EB-5 program — con nued to shape where and how the wealthy invest.

PROPERTY IS POWER

As the lines between lifestyle and financial strategy continue to blur, real estate has emerged as the ultimate expression of both. Whether it’s a luxury property in Fairfield County, a villa in Dubai, or a countryside retreat in Tuscany, the world’s wealthiest increasingly view property as a hybrid tangible asset — one that offers long-term preservation and security in uncertain times, yet also the freedom of movement.

In an unpredictable world, that sense of agency has become a luxury — and for the ultra-wealthy, perhaps the most valuable one of all. 

3 TREND

ofThe Age Inheritance

How the largest intergenerational transfer of assets in history could redefine luxury real estate.

$1M-$5M - High-Net-Worth (HNW)

$5M-$30M - Very-High-Net-Worth (VHNW)

$30M+ - Ultra-High-Net-Worth (UNHW)

$100M+ - Centimillionaires

Ahistoric shift in wealth is underway. Over the next decade, Baby Boomers and older generations are expected to pass down trillions in assets to their heirs — an unprecedented transfer that will reshape not only global finance but also the future of luxury real estate.

Altrata has reported that trillions of dollars will move between generations in the coming decade. A sizable portion of that inheritance will flow to younger generations — particularly Gen X, millennials, and the first wave of Gen Z wealth recipients — transforming them into an increasingly influential client base in the luxury market.

The next decade may see wealth redistributed not just across generations, but across new markets and mindsets. As newly affluent

heirs begin to deploy capital in the coming years, their investment preferences, lifestyle values, and geographic mobility are expected to reshape the definition of “luxury” itself.

To further examine the impact of the Great Wealth Transfer (or as it’s sometimes called the "Silver Tsunami"), we looked to Altrata’s data powered by Wealth-X for insight. Our analysis explores how the transfer of wealth distribution differs across wealth tiers and by region (U.S. vs. rest of world), how much inherited capital could flow into real estate, and how younger inheritors’ priorities could shift luxury property demand.

WHERE THE WEALTH IS COMING FROM

According to Altrata’s 2024 Family Wealth Transfer Report, 1 roughly 1.2 million individuals with a net worth of $5 million or more were projected to collectively pass down nearly $31 trillion over the next decade. By 2025, Altrata revised that estimate upward to $38.3 trillion expected to change hands globally within the same timeframe.

But this enormous exchange won’t unfold evenly across wealth tiers or geography. Of that $38.3 trillion total, the United States

Source: WealthX, an Altrata Company, 2025

GLOBAL

will account for $17.3 trillion, while the rest of the world (ROW) — led by Europe and other mature economies — will total nearly $21 trillion. Individuals with $100 million+ in net worth, or centimillionaires, will dominate the transfer, representing roughly 44.1% of the global total.

In the U.S., households with $5-$30 million in assets are expected to pass down approximately $6.6 trillion over the next decade, while those in the $30-$100 million range will transfer about $3.2 trillion. U.S. centimillionaires are expected to pass nearly $7.5 trillion — bringing the total U.S. wealth transfer to $17.3 trillion.

Internationally, the $5-$30 million cohort will transfer roughly $7.1 trillion, those with $30-$100 million will pass $4.5 trillion, and the $100 million+ group is projected to transfer $9.4 trillion. In total, that represents nearly $21 trillion across the rest of the world.

Nearly half of all global wealth passed in the next decade will come from centimillionaire families alone — despite VHNW households making up a far larger share of the population. It shows that the Great Wealth Transfer will remain highly concentrated, with a relatively small number of estates accounting for a significant share of the total wealth passed down to the next generations.

HOW WEALTH WILL BE DISTRIBUTED

The Great Wealth Transfer is not just about who gets the money; it’s also about how it’s distributed, where it’s concentrated, and what kind of opportunities in real estate it will create.

In the U.S., the wealth transfer will be powered by a wider swath of VHNW individuals, many of whom have built first-generation wealth through entrepreneurship, real estate, and technology. This broader base could widen the circle of affluence, increase liquidity in mid- to upper-tier real estate, and fuel a more diverse pool of next-generation investors and business owners. The American

The next decade will see a historic wave of wealth transfer from older highnet-worth individuals to heirs and charities.”

— MAEEN SHABAN, DIRECTOR OF RESEARCH AT ALTRATA

system has historically been more “democratized” within its upper tiers, so inheritance here is expected to spread wealth horizontally rather than concentrate it vertically.

Across Europe and Asia, however, the pattern reverses. In Europe, old generational wealth remains entrenched in family estates, vineyards, and businesses that pass intact through succession, reinforcing legacy ownership structures. In Asia, much of the wealth is still first-generation — built in the past 30 years through technology, real estate, and manufacturing — and will now begin to consolidate within ultra-high-net-worth families. Both trends suggest that in many international markets, the wealth transfer may further concentrate capital within established family networks, preserving legacy holdings and reinforcing the continuity of longstanding wealth structures.

SPLITTING HEIRS

Most of that capital will flow to Generation X, millennials, and Generation Z, who together are projected to receive 95% of inherited wealth, according to Capgemini Research Institute’s World Wealth Report 2025.2 Millennials will be inheriting the most of any generation over the course of the next 25 years, but Gen X will be first in line. They stand to inherit the greatest portion of assets in the next 10 years, per research from Cerulli Associates.3 That view is echoed by Altrata’s 2024 Family Wealth

Transfer Report,4 which found that in North America, the average age of heirs is firmly Gen X: 46.1 years for children inheriting from ultra-wealthy parents ($30M+) and 47.6 years for heirs of the very wealthy ($5M-$30M).

“Millennials and Gen Z tend to get all of the buzz in conversations about the next generation of luxury, but the truth is, Gen X will be first in line,” Maeen Shaban, Altrata’s Director of Research, told us. “Most Baby Boomer heirs today are in their mid-to-late 40s, while younger generations are more likely to inherit from grandparents — and those are often smaller legacies than those passed directly from parents.”

With Gen X set to inherit first, they’re poised to radically reshape luxury real estate as they tilt their capital toward more digital, purpose-driven, and globally diversified portfolios. “Members of Gen X, on the whole, tend to be pragmatic and strategic,” says Shaban, noting that many fall into the so-called “Sandwich Generation” who are financially supporting their children while also caring for aging parents. “In real estate, that might translate to a greater focus on multi-generational properties, homes with sustainable or smart technology features, or investments in emerging destinations that offer them both lifestyle advantages and risk diversification.”

WHERE THE WEALTH WILL GO

AVERAGE AGE OF INHERITORS BY REGION OVER NEXT 10 YEARS

Another dimension of the Great Wealth Transfer that often goes overlooked is the intra-generational exchange of wealth between spouses. According to Cerulli’s5 research, an estimated $54 trillion will pass between partners by 2048 — with roughly $40 trillion expected to go to widowed women from the Baby Boomer and older generations.

Cerulli data notes that affluent “women tend to be more inclined than men to prioritize philanthropic and sustainability goals.” As these preferences shape how they invest and steward new wealth, they’re also likely to influence how and where they choose to live. Covered in the Coldwell Banker Global Luxury® 2024 Trend Report,6 these “she-elites” tend to favor properties that combine financial security with personal and family-oriented benefits, from community safety and sustainable features to proximity to good schools, friends, and family.7 These decision drivers could reverberate across the luxury real estate market, particularly as the next decade brings a wave of newly affluent women entering the space for the first time.

How wealth is ultimately transferred — whether during one’s lifetime or through inheritance following death — and how it’s managed afterward remain some of the most complex questions facing today’s affluent families. The Altrata 2024 Family Wealth Transfer Report8 notes that these transitions often straddle financial, legal, and emotional dimensions.

For affluent families, particularly those at the UHNW level, the logistics of securing an intergenerational legacy are uniquely intricate and complex. Many of these families are global citizens, with properties, businesses, and investments spread across multiple countries, each with its own legal and tax structures.

As Shaban explains, “Family dynamics are one of the biggest hurdles in any wealth transition. Differing worldviews, business philosophies, and legacy goals between generations can complicate succession planning.” These challenges are also unfolding against an increasingly complex global backdrop of “more frequent geopolitical conflict, rising political populism, heightened trade restrictions, widespread anti-elite and anti-immigrant sentiment, more extreme climate events, and growing fiscal pressures from aging populations,” Altrata’s report continued. “It’s rarely just the handover of assets,” adds Shaban. “It’s also the transfer of values.”

1121 SASCO HILL ROAD

Raney & Team Represented the Seller

GLOBAL REAL ESTATE WEALTH TRANSFER BY WEALTH TIER

THE GREAT VALUES TRANSFER

While older generations may lay the foundation for their legacy, it’s the heirs who ultimately shape where it goes next. And that’s where generational differences come into play.

When it comes to investing and wealth preservation, Baby Boomers tend to focus on security (i.e., preserving wealth to ensure stability for future generations). By contrast, the younger generation of affluent individuals are more growth-oriented, willing to take calculated risks and allocate capital toward higher-performing asset classes and niche opportunities.

Younger generations also tend to approach philanthropy and investing through a more values-driven lens, placing greater emphasis on social justice, environmental impact, and sustainability. They show increased interest in healthcare innovation and medical research, according to Altrata, and tend to favor digital-first service experiences that make their lives easier. The question, then, is how these shifting priorities translate into real estate decision-making.

REAL ESTATE ALLOCATION

According to Altrata, real estate accounts for roughly 12% of the $38.3 trillion expected to change hands — equal to about $4.6 trillion globally. Of that, the U.S. represents nearly $2.4 trillion, and the rest of the world $2.2 trillion. The majority (67.5%) of

ESTIMATED REAL ESTATE WEALTH TRANSFER IN THE NEXT 10 YEARS ($BN)

$2,385.3 $2,222.3

this property wealth will come from the VHNW cohort ($5-$30 million).

This segment will transfer the most property proportionally — about 22.7% of their total wealth — compared with 10.7% for the $30-$100 million UHNW group and just under 4% for centimillionaires, whose assets skew toward businesses and financial investments.

HOW HEIRS WILL SHAPE THE PROPERTY MARKET

A major reshuffling of property ownership among the affluent could be on the horizon, as prime residences and estates change hands over the next decade. Some heirs may choose to sell or downsize inherited properties, while others will reinvest proceeds to enter — or move up within — the luxury market. That shift matters, Shaban points out, “because younger generations already dedicate a far larger share of their wealth to real estate — 12% to 24%, compared with just 4% to 6% among older peers.” Gen Z has also demonstrated a greater desire for homeownership compared to their millennial peers when they were in the same age bracket. Additionally, their consumption and housing choices will likely track with their values — favoring ESG-aligned (environmental, social, and governance) investments, global diversification, technology, and a strong focus on health and wellness.

BEHAVIORAL SHIFTS BY WEALTH TIER AND REGION

In the U.S., Altrata’s Wealth-X data suggests that VHNW heirs will drive the bulk of real estate turnover (65.7%, or $1.57 trillion). Many in this group may choose to retain primary homes but sell secondary or trophy properties to streamline portfolios or generate liquidity. According to Shaban, “These buyers often show interest

in turnkey luxury residences and branded properties, with some showing an appetite for renovation-ready investments that balance usability with potential returns.”

U.S. REAL ESTATE WEALTH TRANSFER BY WEALTH TIER

Source: WealthX, an Altrata Company, 2025

For the UHNW cohort (17.8%, or roughly $425 billion), inherited real estate is likely to be approached with a more strategic lens. “This segment tends to balance lifestyle needs with portfolio considerations,” Shaban explains. “We may continue to see demand for high-end suburban estates, trophy second homes, and crossborder diversification, often executed through private transactions or branded developments.”

At the top of the spectrum, centimillionaires (16.5%, or about $395 billion) have historically treated prime real estate as both a lifestyle asset and a long-term store of value. Their decisions often reflect portfolio rebalancing rather than financial necessity. “This group has typically shown interest in ultra-private estates, pied-à-terres, and other trophy properties — both in traditional hubs and select emerging destinations,” notes Shaban.

Across the rest of the world, similar patterns appear — though shaped by local customs and regulatory environments. “In Europe, there is a strong inclination to preserve legacy estates,” Shaban says, “while many Asian heirs explore international diversification or occasionally liquidate inherited assets to support new ventures.” Trophy apartments, branded residences, and secure compounds tend to be consistent points of interest among the global centimillionaire set.

WHAT IT MEANS FOR LUXURY REAL ESTATE

Given the scale of the upcoming wealth transfer, its impact could ripple through the luxury real estate market — whether it’s boosting inventory levels or shifting demand across price tiers, property types, and coveted lifestyle destinations.

Based on Altrata’s analysis, Shaban notes that real estate professionals could see heightened turnover in many prime markets as assets move from one generation to the next. This could include activity in regions such as the U.S. Sunbelt, parts of coastal Europe, and various global resort hubs. In the U.S., leisure markets and gateway cities may continue to attract interest from domestic VHNW heirs, while some Asian UHNW heirs are expected to remain active in trophy markets like New York, London, Miami, Los Angeles, Geneva, and Dubai.

“The net effect is that luxury housing supply could rise,” he explains. “But demand may also stay resilient, as many next-generation high-net-worth buyers tend to prioritize lifestyle factors and realasset ownership.”

Source: WealthX, an Altrata Company, 2025

Over the next decade, wealth transfers could support stronger mid-market luxury activity in the U.S., particularly within the $3-$10 million property range. A broader base of affluent heirs may pursue upgrades, second homes, or suburban luxury options. Internationally, the ultra-prime segment ($25-$50 million+) is likely to remain concentrated among long-established UHNW

families, which may help maintain exclusivity and pricing at the top end of the market.

Across regions, affluent buyers are generally expected to prioritize wellness features, privacy, security, home-office capabilities, and high-service amenities. Properties that blend lifestyle appeal with some degree of income or investment potential are forecasted to remain attractive to VHNW and UHNW buyers. Centimillionaires will likely gravitate toward what Knight-Frank calls “high-value collectible assets” — those properties offering privacy, prestige, and wealth preservation.

Family offices and private advisors may also play a larger role in managing these intergenerational transitions, particularly for UHNW clients who tend to hold real estate as a means of preserving purchasing power and ensuring longer-term stability. As more transfers are facilitated through trusts, private structures, and off-market channels, “public listings may decline — while discreet, high-value transactions and private brokerage activity could increase,” imagines Shaban.

A NEW LEGACY OF INFLUENCE

The Great Wealth Transfer represents more than just the historic passing of financial capital from one generation to the next; it marks the transfer of influence. With a different set of values, investment strategies, and standards of living, the new heirs will reshape the direction — and the definition — of luxury itself.

FAMILY OFFICE MANAGEMENT OF PRIVATE RESIDENTIAL PROPERTIES MAIN OBJECTIVES

44%

Family Use and Legacy

Capital Preserva on 29%

Diversifica on 20%

7%

Poten al Rental Income

Source: Knight-Frank Wealth Report 2025

Luxury real estate professionals who understand the nuances of this major generational shift will be best positioned to help their affluent clients carry their legacies forward — and, in doing so, will cement their own. 

Drive Consumer Trends

4 TREND Customization

Affluent buyers are leaning into “nest investing.” With prices high and turnkey options scarce, could unrenovated homes in prime locations be the next smart play?

If 2024 was a year of spending restraint for the world’s wealthiest individuals, then 2025 marked the return of intentional spending. But instead of turning to purchases like cars or couture, they shifted their focus homeward, according to new Wealth-X data prepared by Altrata.

Overall, Altrata found that luxury expenditure was projected to rise in 2025, with home-related spending growth on track to potentially outpace other top spending categories. Separately, we looked to independent insights from McKinsey & Company to help contextualize this trajectory and understand how affluent spending patterns are evolving, where “the home” now fits within that hierarchy, and how shifting consumer priorities intersect with today’s housing market forces.

THE STATE OF LUXURY SPENDING

According to Altrata, overall global luxury expenditures are expected to increase by approximately 4.6% in 2025, reversing the 1% decline recorded in 2024. The rebound is especially notable among the world’s wealthiest tiers: very-high-net-worth (VHNW) individuals are projected to boost their spending by 4.8%, from $355.5 billion in 2024 to $372.4 billion in 2025, while ultra-highnet-worth (UHNW) individuals are expected to see a 4.6% rise, from $421.7 billion to $441.1 billion.

The United States remains the global growth engine for luxury consumption, outpacing other regions with 5.8% growth among VHNW and 5.6% among UHNW individuals. By comparison, the rest of the world will see more moderate gains of around 4%.

FROM RESTRAINT TO REBOUND

ESTIMATED PERCENTAGE LUXURY SPEND INCREASE | 2024 VS. 2025 VHNW -

Why did luxury spending soften in 2024? According to Maeen Shaban, director of research for Altrata, inflation and higher interest rates squeezed purchasing power, even among the affluent. Slower economic growth in Europe and Asia compounded the slowdown, while luxury brands — coming off an extraordinary post-pandemic boom — faced excess inventory and price fatigue. Consumers, responding to economic uncertainty, shifted focus from conspicuous goods toward experiences, long-term investments, and savings. China’s lingering travel restrictions further suppressed cross-border luxury purchases in key markets like Europe, the U.S., and Dubai.

Source: Wealth-X, An Altrata Company

By 2025, there was a growing perception of stabilizing conditions, which helped restore confidence and activity among some high-networth individuals. Rising asset values in equities, private markets, and real estate bolstered wealth, while private banks and family offices encouraged luxury purchases as part of diversified portfolios.

THE U.S. FACTOR

The United States continues to drive global luxury growth1 thanks to its high concentration of wealthy individuals2 with liquid portfolios diversified across equities, private markets, and real estate. A robust ecosystem of private banks, family offices, and wealth advisors also supports this group, and helps make access to capital and luxury purchases more seamless.

“The depth and accessibility of luxury experiences within the U.S. also play a role,” notes Shaban. “From travel and hospitality to automobiles and high-end retail, affluent Americans have abundant opportunities to spend domestically. A large and growing ‘aspirational affluent’ segment has further fueled demand.”

HOMES, GOODS, AND AUTOMOBILES: HOW LUXURY SPENDING COMPARES ACROSS CATEGORIES

While home-related investment still represents a smaller share of overall luxury spending, it could become one of the fastest-growing spending categories for both VHNW and UHNW individuals, particularly in the United States.

Luxury automobiles remain the largest category among the affluent, with total expenditures reaching $341.3 billion in 2024 — split between $177.1 billion from VHNW individuals and $164.2 billion from UHNW individuals. However, growth is expected

ESTIMATED SPENDING INCREASE 2024-2025 ($BN)

to moderate in 2025, with global spending projected to rise just 4.2% to $355.7 billion.

Personal luxury goods, the second-largest category, also continued to perform strongly. At $153 billion in 2024, this segment is projected to grow 5.4% globally to $161.3 billion in 2025, with the U.S. again leading at 6.6% growth.

By contrast, Altrata projects a 4.8% annual increase globally on home-related spend, and 6.0% for U.S. individuals with a net worth above $5 million. The UHNW segment in the U.S., in particular, now spends 18.5% more on home luxuries than on personal goods. While projected growth may not yet outpace that of personal luxury goods, it still points to a meaningful shift in how affluent consumers are expected to prioritize their discretionary dollars.

The data shows that affluent consumers appear to be directing greater resources toward their homes — whether it’s in the form of design, furnishings, homewares, home technology, or domestic help. “Higher prices across goods and services, along with rising domestic staffing costs, are likely adding to total expenditures, as affluent households continue to invest in estate management and household operations that sustain a seamless lifestyle,” Shaban points out. But could the rise also signal a shift in how the affluent will be prioritizing their discretionary dollars in the future?

Today’s luxury consumers are not necessarily price-conscious, but quality-conscious.”

LUXURY SPENDING AND VALUE PERCEPTION CHANGES

While overall affluent spending has largely recovered from the dip in 2024, sentiment has not fully followed suit. According to McKinsey’s State of the Consumer 2025 report, the traditional link between sentiment and consumption has weakened. Amid inflation, tariffs, and economic uncertainty, affluent consumers are re-evaluating notions of value and quality in the luxury sector. Many are making deliberate trade-offs, choosing to trade down in some categories while splurging in others, reflecting a more purpose-driven approach to luxury.

As Colleen Baum, Senior Partner at McKinsey & Company, explains: “Today’s luxury consumers are not necessarily priceconscious, but quality-conscious. Prices of luxury goods are rising faster than what some purchasers feel they are worth, leading even some high-net-worth buyers to ask, ‘Does this still pass the reasonableness test?’ Even if they can afford it, they still want to be savvy shoppers.”

That mindset is particularly pronounced among younger affluent consumers — especially millennials and Gen Z who tend to be less status-driven and more value-oriented. “They’ll splurge when it makes sense on pieces that feel special or durable and save where they can’t see or feel a difference in quality,” she says. This high-low approach often shows up in affluent consumers pulling back on discretionary splurges — like clothing or cars — and redirecting their spending toward investments that enhance their quality of life, such as travel and real estate.

“What’s remained durable for this consumer is spending on experiences, particularly travel and dining, which continue to be resilient categories,” says Baum. “The second priority is home. Data consistently shows spending on the home as one of the most stable categories.”

CONSUMERS CONCERNED ABOUT RISING PRICES AND HOW THAT IMPACTS THEIR PLANS TO SPLURGE

Intend to splurge Do not intend to splurge

*EU-5 = France, Germany, Italy, Spain and UK

Source: McKinsey ConsumerWise Sentiment Survey, Q2 2025. Total Surveyed 25,998

TOP INTERESTS OF AFFLUENT CONSUMERS

McKinsey & Company’s 2022 survey 3 of upper-income millennials (household incomes above $100,000) supports this trend: nearly 45% said they would spend more on travel and vacations if their economic situation improves, followed closely by 38% who prioritized home purchase or renovation.

When asked about the top interests of their affluent clients, surveyed Coldwell Banker Global Luxury® Property Specialists also pointed to experience-driven passions: travel ranked first by a wide margin (71.9%), followed by health and wellness (54.7%) and a near-three-way tie among technology, sports, and cuisine (all around 30%).

The alignment of priorities like experiences and home suggests that real estate itself may increasingly serve as both a lifestyle enhancer and an investment vehicle for the next generation of affluent consumers.

“Instead of buying more clothes or another car, they might say, ‘To feed my desire for travel, I’ll buy real estate in a destination location,’” imagines Baum. “Maybe they’ll purchase a home in a ski resort, and approach it strategically by renting it out to offset costs.”

Nest Investing – a personalized sanctuary that builds wealth.

NEST INVESTING

This value mindset could be another reason why home-related spending is climbing. For many affluent consumers, the home feels like the safest place to invest. Perhaps they’re channeling more of their wealth into design, furnishings, smart technology, and wellness features — because these investments enhance their everyday life and boost their property’s long-term value. Often described as “nest investing,” this approach satisfies two impulses: the emotional desire to create a personalized sanctuary and the rational pursuit of wealth building.

The idea of the home as both a refuge and a financial asset isn’t exactly new. The concept took root during the pandemic, when the home became the center of life, serving simultaneously as office, classroom, wellness retreat, and social hub. Its influence has only deepened in the era of personalization, as luxury homeowners want thoughtfully designed environments that not only reflect their unique tastes but also anticipate their every lifestyle need.

As Baum observes, “Today's luxury consumers are increasingly informed and imaginative, seeking distinctive, personalized solutions that reflect their unique preferences, and driving demand for renovations and customizations."

TURNKEY DREAMS MEET MARKET REALITIES

Yet even as nest investing and personalization are important drivers, they’re balanced by an equally strong appetite for ease, comfort,

and instant enjoyment. Combined with high expectations around quality, design, and craftsmanship, this has fueled sustained demand for turnkey properties across the luxury market.

“For this consumer, turnkey is still preferred," says Baum - a sentiment that aligns with what many Luxury Property Specialists continue to see on the ground. Just over 30% said that move-in ready or new construction homes were the most sought-after among their clients, second only to properties in the best locations. Meanwhile 60.4% said buyers are more likely to view a home in need of a renovation as a deterrent.

Yet even as demand for the “have-it-all” property grows, supply has failed to keep pace. Inventory of turnkey homes remains constrained across many prime markets — a dynamic that has helped sustain high prices and fierce competition.

LUXURY BUYERS' VIEW ON HOMES READY FOR RENOVATION

Source: Coldwell Banker Global Luxury Survey, November 2025

What happens when move-in-ready inventory isn’t available — or not available at their price point? And what if the homes within reach simply don’t meet their standards?

“They may be increasingly open to renovation as a path to achieving what they want,” Baum observes. “At what point does the desire for personalization outweigh the need for convenience or move-in readiness?”

ENTER THE CUSTOMIZABLE ESTATE

In the traditional real estate market, the fixer-upper has long been a proven pathway to value creation. Generations of homeowners have built wealth through this time-tested strategy: buy low, improve, sell high. But in the luxury sector, a different set of motivations drives behavior. As we’ve previously noted, affluent buyers are motivated not only by investment potential, but also by personalization, exclusivity, craftsmanship, emotional connection, and experiences.

The luxury counterpart to a fixer-upper could be thought of as the “customizable estate” — a property that combines creative freedom with potential financial upside. Remodeling or renovation may build instant equity and long-term value but also allows owners to tailor every detail to their aesthetic, wellness, and lifestyle ideals. For discerning or opportunistic buyers, this could represent the next great entry point into the evolving luxury market.

LUXURY BUYERS' PREFERENCE FOR HOMES WITH 'GOOD BONES' IN GREAT LOCATIONS

Surveyed Luxury Property Specialists are beginning to detect a subtle shift in this direction. Roughly 28.1% said they’re noticing a slight movement toward homes with “good bones” in desirable locations, even if they require renovation, while 30.2% said this trend is increasing noticeably. Buyers appear to be weighing longterm potential and personalization over immediate perfection.

Nearly 6 in 10 Luxury Property Specialists (58.3%) said they’re seeing at least some movement toward homes with “good bones” in desirable locations — even if they require renovation.

Yes, this trend is increasing no ceably

Somewhat – I’ve seen a slight shi in this direc on

No, buyer preferences are about the same as before No, most buyers s ll prefer turnkey homes regardless of loca on

Source: Coldwell Banker Global Luxury Survey, November 2025

“With the uptick in wealth and the continued desire for ownership, we may be at a turning point where aspiration and reality diverge,” says Baum.

That opportunity may be significant. Nearly 32% of surveyed Luxury Property Specialists estimate that renovated or turnkey homes sell for 11-20% more than comparable properties requiring substantial updates. Another 25% report the gap can reach 21-30%

Nearly

57% of surveyed Luxury Property Specialists said buyers will pay 11% to 30% more for turnkey properties.

— a double-digit differential that underscores the potential upside for those willing to invest time, vision, and capital into transformation.

We know that today’s luxury consumers are more than willing to pay a premium when the perceived value is there. That same discerning mindset will continue to shape their property decisions, with turnkey homes likely at the top of their wish lists. However, the customizable estate could gain traction if current shifts in consumer mindset, spending behavior, and real estate market conditions hold.

THE BIGGER PICTURE

Should the customizable estate concept move from theory to reality, the implications for the greater luxury real estate market could be meaningful.

As affluent homeowners continue to reinvest in their homes, they’re raising the caliber of housing stock in their local luxury markets. In inventory-constrained areas, these improvements elevate property standards, maintain property values, and open new opportunities for resale. Continued reinvestment in property also strengthens overall confidence in real estate as an appreciating asset.

Ultimately, the next wave of luxury growth may not come from building new, but from reimagining what already exists. Luxury real estate professionals who see not just the home that is, but the home it could become may give their clients the edge. 

5 TREND

The New Blueprint Luxury Living for

No single feature defines a modern luxury home. It’s the interplay of every element that elevates a property into something extraordinary in the eyes of today’s affluent buyer.

Today’s affluent buyers are signaling something more nuanced, and far more intentional, about what luxury truly means.

For decades, price served as the shorthand for luxury. A higher number implied exclusivity, quality, and status. But as the luxury real estate market matures in 2026, price alone no longer tells the full story.

Across global search behavior, agent feedback, and closed sales data, one theme is unmistakable: luxury buyers are living larger, but not indiscriminately. More space, more privacy, more views, and more flexibility are not symbols of excess, they are strategic lifestyle investments. This shift toward what might be called informed abundance is redefining the blueprint for modern luxury living.

From the earliest online inquiries to final purchase decisions, the data shows that affluent buyers are prioritizing space and experience long before they ever weigh price. And that evolution is reshaping how luxury homes are designed, marketed, and valued worldwide.

Intentional Demand Starts at the Search Level

Early signals of this shift appear clearly in global inquiry behavior on JamesEdition,1 one of the world’s leading luxury property marketplaces. Between 2024 and 2025, overall inquiries on the platform rose 23%, with the strongest growth concentrated in larger homes, distinctive estates, and land-based properties.

23 %

Inquiries for high-end proper es rose 23% YOY globally

This increase was not evenly distributed across all property types. Detached homes and villas continued to dominate demand, accounting for 66.2% of all inquiries, even as their overall market share slipped slightly due to faster growth in niche segments. Interest in detached homes rose 15% year over year, underscoring that privacy, autonomy, and physical space remain central to luxury appeal.

Within this category, however, the most striking shifts occurred at the edges. Inquiries for unique estates surged 78%, while castle-style residences climbed 35%. Though these property types still represent a small slice of total listings, their rapid growth signals a deeper appetite for rarity, legacy potential, and architectural distinction.

Interest in land followed a similar trajectory, with inquiries rising 38.2% and market share expanding 13%. For affluent buyers, land represents optionality - the freedom to expand, preserve, customize, or simply protect privacy over time. Even private islands saw modest gains, reinforcing that space and seclusion remain powerful motivators at the highest end of the market.

At the same time, attached luxury properties — apartments, condos, and townhomes —posted a 7.6% rebound in inquiries after declining in 2024. This suggests renewed confidence in urban luxury markets, particularly among buyers seeking larger-format units that deliver space without sacrificing proximity, culture, or convenience.

Together, these patterns point to a bifurcated but intentional luxury market: one segment prioritizing expansive, autonomous living, and another gravitating toward well-designed, spacious urban residences that still support modern lifestyles.

Bedrooms as a Barometer of Modern Luxury

Bedroom count has emerged as one of the clearest indicators of how luxury buyers define space today. On JamesEdition, more than half of all global inquiries in 2025 focused on homes with five or more bedrooms. Among single-family homes, 63.7% of inquiries targeted properties with five or more bedrooms, reinforcing that scale remains a core expectation.

Demand for four- and five-bedroom homes increased year over year, while interest in three-bedroom homes declined by 10%. This divergence reflects a growing need for flexibility —dedicated offices, guest suites, wellness rooms, and multi-generational accommodations have moved from nice-to-have to essential.

GROWTH OF INQUIRIES FOR SINGLE-FAMILY HOMES BY NUMBER OF BEDROOMS

In the attached sector, the sweet spot remains three bedrooms, but even here, demand is shifting upward. Inquiries for four- and five-bedroom attached homes rose over 4%, while interest in twobedroom or smaller units fell nearly 9%. Luxury buyers may still accept vertical living, but they are unwilling to compromise on space.

These preferences are echoed by practitioners on the ground. When surveyed, nearly four in ten Coldwell Banker Global Luxury Property Specialists said that minimum bedroom and bathroom counts are the single most non-negotiable feature for clients after location.

NON-NEGOTIABLE FEATURES FOR LUXURY BUYERS

Minimum # bedrooms/baths Square footage/overall size

and security Architectural pedigree/design quality

Source: Coldwell Banker Global Luxury Survey, November 2025

Do Searches Translate into Sales?

To understand whether these stated preferences translate into real transactions, sales data from Institute for Luxury Home Marketing offers critical validation.

In 2025, the average luxury single-family home sold featured 4.4 bedrooms, just shy of the five-bedroom preference seen in global searches. This slight gap suggests that while buyers aim high, they are willing to compromise on exact bedroom counts when other priorities such as layout, design quality, amenities, or location are met.

In the attached sector, the alignment is tighter. The Institute found that luxury attached homes averaged 3.2 bedrooms, closely tracking search behavior and reinforcing that three bedrooms have become the functional baseline for luxury living in urban environments.

The takeaway is not that buyers are downsizing expectations, but that space is evaluated holistically. Bedrooms matter, but they are weighed alongside usability, flow, and lifestyle alignment.

SQUARE FOOTAGE: THE GREAT LUXURY DIVIDE

If bedroom counts reflect how buyers plan to live, square footage reveals how far luxury diverges from the broader housing market.

In 2025, the Institute reported that the average luxury single-family home measured just over 4,250 square feet, nearly double the size of the average new single-family home (2,364 square feet), per a second-quarter 2025 analysis by Census Quarterly Starts and Completions by Purpose and Design and the National Association of Home Builders (NAHB).2 Attached luxury residences averaged around 2,450 square feet — 35% higher than even the average detached home in the broader market.

By contrast, data from the National Association of Home Builders3 shows that buyers in the traditional market are trending in the opposite direction. Rising interest rates and affordability pressures have pushed median desired home sizes lower over time, with recent medians hovering around 2,000-2,100 square feet across both property types.

This divergence underscores a defining characteristic of the luxury segment: insulation from macro affordability constraints. While cost pressures compress space expectations for the mass market, affluent buyers are increasingly willing to pay premiums for room to live, work, host, and restore.

Cindy Raney, Founder of Cindy Raney & Team, agrees that “sustained demand for larger properties in Fairfield County is being driven by affluent buyers seeking homes that can comfortably support both their lifestyle priorities and evolving amenity needs.”

WHY LIVING LARGE IS NO LONGER ABOUT EXCESS

It would be easy to dismiss the move toward larger homes as indulgence. But the motivations behind today’s demand tell a more disciplined story.

The pandemic accelerated a shift that was already underway: homes became multi-functional hubs. Offices, classrooms, gyms, wellness retreats, creative studios, and gathering spaces now coexist under one roof. What began as necessity has become expectation.

Today’s affluent buyers are not pursuing size for its own sake. They are pursuing capability — the ability for a home to support multiple roles across changing life stages. This mindset of informed abundance prioritizes flexibility, longevity, and lifestyle alignment over spectacle.

4,250

2,364

2,450

As Raney puts it, today’s buyers are no longer focused on square footage as a status symbol. Instead, they’re asking, “What does this home allow me to do, how does it support the way I live, work, host, recharge, and evolve over time?”

PRICE IS NO LONGER THE DEFINING LINE

As buyer expectations evolve, price has become an increasingly unreliable proxy for luxury.

The once-standard $1 million threshold has lost relevance. According to National Association of REALTORS® and Realtor.com,4 entering the lowest tier of luxury in 2025 required approximately $1.3 million, roughly three times the national median list price. In Fairfield County that benchmark is now even higher at $2.1 million, with some communities such as Westport and New Canaan over $4 million and Greenwich at $6 million.

Historical data from the Institute shows that median prices for the top 10% of properties across more than 125 markets have increased 52-56% since 2020. These increases reflect not just inflation, but scarcity, particularly for properties that deliver space, privacy, views, and architectural distinction.

JamesEdition inquiry data supports this conclusion. Interest in homes priced above €10 million (approx. $11,728,500 USD) rose

FAIRFIELD COUNTY

Darien

Fairfield/Southport

Greenwich

New Canaan

Weston

Westport

Wilton

TOP 10% THRESHOLD PRICE IN 2025

$2,100,000 $4,550,000 $2,200,000 $6,050,000 $4,800,000 $2,275,000 $4,275,000 $2,250,000

5.2% year over year, with attached properties in this tier jumping an impressive 17%. At the same time, most luxury demand remains concentrated in more attainable ranges, €2-5 million (roughly $2,355,000 to $5.5 million USD), for single-family homes and €500,000-€1 million (about $540,000 to $1.1 million USD) for attached properties.

The result is a two-tier luxury market: one driven by landmark estates and ultra-rare assets, and another defined by livable, welldesigned homes that offer everyday luxury without excess.

THE NEW BLUEPRINT FOR LUXURY LIVING

As buyers move from searching for space to selecting homes, a more comprehensive definition of luxury comes into focus — one built on the experience, setting, and design quality that a home offers, not any single feature.

No element alone defines a luxury home in 2026. Instead, it is the interplay of location, views, privacy, condition, architecture, and amenities that elevates a property into something extraordinary.

Setting the Stage

Location remains foundational. Nearly half of Coldwell Banker Global Luxury Property Specialists report that location-defined properties are the most in-demand among their clients. But beyond the address, buyers are evaluating views, privacy, and community context with increasing precision.

TYPES OF LUXURY PROPERTIES IN HIGHEST DEMAND

According to Jason H. Mudd, Managing Partner at Cindy Raney & Team, “High-net-worth buyers tend to zero in on established neighborhoods with strong reputations that match the lifestyle they want.”

Views play an outsized role in shaping desirability. According to surveyed Luxury Property Specialists, 21.6% said their affluent clients ranked views as their top non-negotiable after location.

Proper es based on loca on

Move-in ready or new construc on

Proper es o ering acreage/land

Water views rank among the most sought-after amenities on JamesEdition, and Coldwell Banker sales data shows that over half of Global Luxury homes sold in 2025 featured a water view, while just 14% were true waterfront — a disparity that continues to drive premiums.

High-net-worth buyers tend to zero in on established neighborhoods with strong reputations that match the lifestyle they want.”

— JASON H. MUDD

Source: Coldwell Banker Global Luxury Survey, November 2025

“True waterfront access is incredibly rare, and that scarcity continues to drive intense demand,” says Raney.

Privacy has shifted from preference to expectation. Nearly 45% of Global Luxury homes sold in 2025 referenced privacy, up sharply from the year prior. Gated settings, acreage, mature landscaping, and setbacks all contribute to a sense of sanctuary.

Community also plays a growing role. Buyers want serenity without isolation — proximity to dining, culture, wellness, and education is increasingly non-negotiable across all luxury markets.

Luxury Beyond Four Walls

Modern luxury extends well beyond interiors. On JamesEdition, eight of the ten most-searched amenities are tied to outdoor or external features, reinforcing the importance of lifestyle spaces that connect home and environment.

TOP 10 MOST INQUIRED ABOUT FEATURES

Pools ranked No. 1 for the second consecutive year according to JamesEdition, and gardens, terraces, and balconies remained top priorities. Coldwell Banker sales data confirms these amenities impact: nearly half of luxury homes sold featured yards or gardens, and more than a third included terraces or patios and pools.

As Mudd, explains: “Luxury home buyers are looking for an indooroutdoor lifestyle with pools, spas, and outdoor kitchens — and

ideally this comes hand-in-hand with a great location, whether it’s on the ocean, lake or a country club golf course.”

Garages, too, have evolved into essential luxury spaces. Ranked No. 3 among global search amenities as well in sold properties, garages now serve as showcases for collections as much as storage — especially as vehicle ownership remains nearly universal among high-net-worth individuals.

LUXURY HOME AMENITIES IN SOLD PROPERTIES | 2024 VS. 2025

The Interior Experience: Sanctuary by Design Inside, buyers are prioritizing features that support comfort, wellness, and ease. Climate-controlled environments, smart systems, and zoned living have become baseline expectations, particularly in new construction.

Dedicated home offices, once optional, are now among the most requested features, reflecting the permanence of hybrid work. Wellness infrastructure is expanding beyond basic gyms to include saunas, meditation rooms, recovery spaces, and spa-level amenities.

AMENITIES THAT MOST OFTEN HELP SELL HOMES FASTER

Outdoor living space

O ce(s)/work-from-home setups

Guesthouse/mul -gen living

Entertainment spaces (theater, bar, game room)

Smart-home technology

Home gym/wellness space

Other

Source: Coldwell Banker Global Luxury Survey, November 2025

Multi-generational layouts are also rising in importance, with demand for guesthouses, detached suites, and flexible floor plans that can adapt as families evolve.

These are the key amenities that also help homes sell faster according to Surveyed Luxury Property Specialists.

“Flexible spaces that support remote work and multi-generational living are in high demand,” concurs Raney. “Technology integration has become a baseline expectation. Buyer demographics are shifting

— older downsizers want low-maintenance elegance, while younger affluent buyers favor clean, modern design and authenticity over formality. But outdoor amenities such as pools, kitchens, fire features, and private recreation areas are increasingly essential for all affluent buyers.”

WHAT COMES NEXT

As younger affluent buyers gain influence, the blueprint for luxury living will continue to expand. Energy efficiency, climate resilience, EV infrastructure, and health-focused design are already moving from differentiators to expectations in many markets.

What remains constant is the underlying philosophy: luxury is no longer defined by how much a home costs, but by how well it supports life.

For sellers considering a move in 2026, this shift presents both opportunity and challenge. Homes that align with this new blueprint are best positioned to command attention and achieve premium outcomes. Those that fall short can still succeed, but pricing and positioning must reflect how today’s buyers assess value.

In the end, living large has little to do with excess. It is about intention. And in the modern luxury market, that intention is shaping a new standard — one where space, the experience from the property, and the right setting matter far more than the number on the price tag. 

final Perspective

While there are nuances in every market, the trends collectively point to a luxury landscape moving toward greater balance for buyers and sellers in 2026. Speculative buying has largely faded, giving way to a more considered, lifestyle-driven, long-view investing ethos — a positive shift for both sides of the transaction. With less urgency and more thoughtfulness underpinning decisions, the pace of the market may feel slower than years past, but it also marks a healthier, more resilient era for luxury real estate.

“What defines this era of luxury is not excess, but alignment,” said Cindy Raney, Founder of Cindy Raney & Team. “Buyers are prioritizing homes that support wellness, flexibility, and multigenerational living — properties that feel purposeful and resilient in every sense.”

The central question now becomes: Where will affluent buyers and sellers place their trust, their capital, and their long-term vision? This next chapter will be shaped by the confidence they have in the markets, the professionals who guide them, and the homes that promise both emotional resonance and financial stability.

“In a market defined by intention rather than urgency, trust becomes the true currency,” Raney added. “Affluent buyers and sellers are looking for advisors who can interpret nuance, anticipate shifts, and guide decisions that extend well beyond a single transaction.”

Demand will continue to be propelled by priorities such as wealth preservation, geographic flexibility, wellness, design, sustainability, climate resilience, multigenerational living, and turnkey convenience. Affluent consumers are seeking properties that support every dimension of their lives — and they have continually shown that they are more than willing to invest in the places, features, and advisors that help them achieve that vision.

“Capital will continue to flow where confidence is strongest,” noted Jason H. Mudd, Managing Partner at Cindy Raney & Team. “That confidence is built not only on market fundamentals, but on clarity — clarity around value, long-term positioning, and how a property supports both lifestyle and portfolio strategy.”

As the market steadies, differentiation will increasingly come down to insight and guidance. The professionals who stand out in this next phase will be those who offer strategic perspective, hyper-local intelligence, and a sophisticated understanding of how today’s affluent households live, invest, and plan for the future — ensuring that both emotional aspirations and financial objectives remain firmly aligned. 

Resources

IN REVIEW 2025 | PAGES 16 - 19

1. https://www.nar.realtor/newsroom/nar-existing-home-sales-report-shows-1-2-increase-in-october

2. https://www.housingwire.com/articles/homebuyers-embrace-sustainability-efficiency-in-2025/

3. https://www.capgemini.com/insights/research-library/world-wealth-report/?utm_source=PR&utm_medium=PR&utm_ campaign=wwr&utm_cre=IMG&utm_id=2025May07

4. https://www.realtor.com/news/trends/luxury-real-estate-market-projection-2030-cash-buyers-report/

TREND 1 | PAGES 20 - 27

1. https://www.knightfrank.com/wealthreport

TREND 2 | PAGES 28 - 35

1. https://www.ubs.com/global/en/wealthmanagement/insights/global-wealth-report.html

2. https://content.knightfrank.com/resources/knightfrank.com/wealthreport/the-wealth-report-2024.pdf

3. https://altrata.com/news/the-top-cities-where-the-ultrawealthy-are-buying-second-homes-in-2025-and-its-not-just-london-or-new-york?

TREND 3 | PAGES 36 - 45

1. https://altrata.com/reports/family-wealth-transfer-2024_2

2. https://www.capgemini.com/insights/research-library/world-wealth-report/?utm_source=PR&utm_medium=PR&utm_ campaign=wwr&utm_cre=IMG&utm_id=2025May07

3. https://www.cerulli.com/reports/us-high-net-worth-and-ultra-high-net-worth-markets-2025

4. https://altrata.com/reports/family-wealth-transfer-2024_2

5. https://www.cerulli.com/press-releases/cerulli-anticipates-124-trillion-in-wealth-will-transfer-through-2048

6. https://www.coldwellbankerluxury.com/editorial/the-trend-report-2024

7. https://www.nar.realtor/blogs/economists-outlook/celebrating-single-women-home-buyers?mf_ct_campaign=yahoo-synd-feed&utm_ content=syndication

8. https://altrata.com/reports/family-wealth-transfer-2024_2

TREND 4 | PAGES 46 - 55

1. https://www.statista.com/outlook/cmo/luxury-goods/united-states?srsltid=AfmBOoqeFd8TKr871DkZ4ph4tI_1m661TGD69G6FYQNfof ZS9aEIZPph

2. https://altrata.com/reports/world-ultra-wealth-report-2025

3. https://docs.google.com/presentation/d/1vLFoVPHP9wavo8VWwfi24PxydgAOjMom/edit?slide=id.p1#slide=id.p1

TREND 5 | PAGES 56 - 65

1. https://www.jamesedition.com

2. https://www.census.gov/construction/nrc/pdf/quarterly_starts_completions.pdf

3. https://eyeonhousing.org/2025/08/single-family-home-size-2q25-data/

4. https://www.realtor.com/news/trends/million-dollar-listing-luxury-homes-more-expensive-demand-booms-supply-dwindles-reportseptember-2025/