Luxury Home Prices Rising Faster Than Non-Luxury

Seattle, WA, July 6, 2026– The median U.S. luxury home sale price rose 4.7% year over year to $1.37 million during the three months ending May 31—more than triple the 1.5% gain in non-luxury sale prices, according to Redfin.

Luxury prices are increasing largely because demand for luxury homes is on the rise. Pending sales of luxury homes rose 5.2% year over year—the largest gain since December 2024. That’s compared with a 3.6% gain in non-luxury pending sales, which is a deceleration from the month before.

This report is based on a Redfin analysis of MLS data that is subject to revision. All figures cover rolling three-month periods. Redfin defines luxury homes as those estimated to be in the top 5% of their metro area’s price range, while non-luxury homes fall into the 35th–65th percentile. 

High-end homebuyers are more active because they’re less sensitive to the affordability pressures and financial instability facing many Americans today. Overall homebuying demand has been fairly slow because mortgage rates and home prices remain stubbornly high, pricing many regular house hunters out of the market. Additionally, the economic uncertainty stemming from the back-and-forth on the Iran war, inflation, and the possibility of the Fed hiking interest rates is making some prospective buyers think twice about making a huge purchase. Ultra-wealthy Americans, by contrast, have more money to pay high housing costs, and they have the freedom to make big purchases even in uncertain times.

“The luxury market has been immune to the housing slowdown, especially in the most desirable, beachfront areas,” said Mike DeMello, a Redfin Premier agent in Honolulu. “Affluent buyers who can afford luxurious homes are often insulated from things like high mortgage rates and economic uncertainty. Meanwhile, a lot of locals are choosing to rent because prices and rates are simply too high to buy.”