From 2013 through 2017, the median price for a luxury home was less than $1 million in 35 major U.S. metropolitan areas, according to an analysis by Redfin. That number started to drop in 2018, falling to 30 by 2020.
The pandemic homebuying surge accelerated price growth across all tiers, including the luxury one, and by 2025, buyers could find a luxury home for less than $1 million in only seven major metros, Redfin found.
The real estate brokerage defines a luxury home as one estimated to be in the top 5% of its metro area based on prices of homes sold over a rolling 12-month period. Researchers calculate data in rolling three-month periods and make comparisons against the same time period in previous periods.
For the February-to-April period, the U.S. mean luxury home sale price was $1,348,065, up by 88% from 2015 to 2025.
Buyers able to put out significantly more money for a luxury home can look to the West and East coasts. The typical luxury home in San Francisco sold for $6,092,801 in April, the most expensive of the top 50 metros.
For context, Redfin noted that the typical cost of a starter home in San Francisco was $972,825, making it more expensive than a luxury home in the seven most affordable metros.
San Jose, also in the Bay Area, was the second most expensive major metro for luxury homes, with a median price of $5,508,743. Anaheim, another California metro, was the third most expensive at $5,298,770, followed by Miami at $4,367,401 and New York at $4,216,813.
West Palm Beach, Florida, recorded the most growth over the past decade, with the price of a median luxury home skyrocketing by 207.6%, from $1,343,114 to $4,132,048.
Back down to earth, see the accompanying gallery for the seven metros where the typical luxury home costs less than $1 million.
(Credit: Adobe Stock)
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