Generation X and millennials are set to be the two largest generational cohorts to inherit $4.6 trillion in global real estate wealth over the next 10 years, according to Coldwell Banker Global Luxury program’s 2026 Trend Report. The United States is expected to capture 52% of that property transfer, funneling a historic share of generational wealth into U.S. real estate.
“The next generations are inheriting a historic amount of wealth and approaching luxury with intention,” Michael Altneu, vice president of the Coldwell Banker Global Luxury program, said in a statement.
“They are choosing homes that reflect their identity, support their day-to-day lifestyles and protect long-term financial value. For many, real estate has become a strategic piece of their wealth planning and a sanctuary for their well-being.”
The report draws on three years of luxury home sales data, insights from global wealth research companies and a survey of more than 100 Coldwell Banker Global Luxury Property specialists.
As the global wealth transfer unfolds, the report finds that the luxury housing market has begun to diverge from the broader real estate landscape. Although higher rates and affordability challenges have tempered activity in some markets, affluent buyers are steadily expanding their property portfolios.
The report finds that broader wealth accumulation is further reshaping luxury demand, with buyers viewing real estate as a resilient investment, favoring values- and experience-driven homes, and embracing “living large” over quiet luxury.
These shifts are setting the stage for five key trends that will define where the luxury market is headed next.
1. The luxury housing market is healthy and resilient.
A majority of luxury property specialists described their markets as “resilient,” citing steadily rising median prices and inventory that continues to turn, indicating healthy supply and demand.
U.S. single-family luxury home prices increased by 3% in 2025, while sales rose by 4%, underscoring sustained momentum at the high end.
In the 2020–2025 period, wealthy individuals increased their overall wealth by nearly 40% and their real estate holdings by 29%.
Globally, real estate continues to function as a stabilizing, counter-cyclical asset, with the absolute dollar value invested rising consistently for five consecutive years.
2. The U.S. is the hottest luxury market.
The U.S. is expected to lead the world in new luxury real estate activity over the next 10 years, driven by the great wealth transfer and sustained investment from affluent buyers.
Some $2.4 trillion in U.S. real estate, or 52% of all global luxury property expected to transfer, will change hands in the next 10 years. Gen Xers will be the primary recipients of the near-term transfer, while millennials are set to inherit the largest share over the long term.
Individuals with $5 million to $30 million in net worth will drive 65.7% of U.S. property wealth transfers.
Since 2020, investment in U.S. luxury real estate has increased by 59.9% among buyers with more than $5 million in net worth, compared with 16.3% among buyers in all other countries.
3: 'Nest investing' is redirecting luxury spending toward real estate
More and more luxury buyers are treating their home as both a lifestyle investment and a core wealth strategy, fueling a rise in what the report defines as a “nest investing” dynamic.
Home-related spending — primary residence upgrades and purchases of second or lifestyle properties — among those with a net worth of $30 million or more is projected to outpace the growth of spending on personal luxury goods by 18.5%.
Younger heirs are allocating a larger share of their portfolios to real estate compared with older generations.
Demand for homes priced between $3 million and $10 million is accelerating as buyers prioritize wellness, space, quality and long-term return.
4. New luxury hotspots are emerging in the South and Midwest.
Unprecedented geographic flexibility is putting a new crop of cities on the luxury map as affluent buyers seek out markets based on such factors as their stability, long-term real estate value, lifestyle amenities, tax strategy and climate considerations.
High-growth luxury markets include Atlanta, San Diego, Nashville, Dallas, Salt Lake City and Minneapolis. They are showing the same resiliency characteristics that were once associated with New York and London.
These markets all experienced steady price appreciation over the last five years, and simultaneously offered robust local economies, diverse industries and lifestyle amenities.
5: Quiet luxury is out, living large is in.
Affluent buyers’ growing demand for larger footprints, multi-use living and estate-style characteristics is reshaping luxury preferences.
Nearly 40% of luxury property specialists report that minimum bedroom and bathroom counts are a top non-negotiable home feature.
In single-family homes, those with five or more bedrooms account for 63.7% of all inquiries.
The average luxury single-family home sold in 2025 had 4.4 bedrooms and measured about 4,250 square feet, which is nearly twice the size of the average new U.S. home at 2,364 square feet.
A quarter of Coldwell Banker Global Luxury sold listings in 2025 explicitly highlighted “modern design.”
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.