Key Takeaways From the Coldwell Banker Luxury Real Estate Market Trends and Insights for 2025

By James “Jim” Joeriman, Coldwell Banker Riviera Realty, Inc.

Luxury Market Outpaces Traditional Real Estate

The luxury housing sector continues to demonstrate remarkable resilience, consistently outperforming the traditional real estate market. In the past year, luxury single-family home prices increased by 7.6%, doubling the growth rate of the traditional market, which stood at 3%. Similarly, luxury condominiums saw a price growth of 6.5%, also outpacing the 3% growth in traditional condo markets. This trend highlights the enduring appeal and strength of high-end real estate investments.

Agent Sentiment: High Levels of Optimism

A recent survey of Coldwell Banker Global Luxury® Property Specialists revealed a strong sense of optimism among agents. An impressive 85.5% of respondents rated current market conditions as either “good” or “fair” for buyers. The outlook for sellers remains robust as well, with 74.5% of agents expressing a positive perspective on the market’s direction for sellers.

Market Shifts Toward Greater Balance

The luxury real estate market is expected to become more balanced in 2025, creating a fairer environment for both buyers and sellers. The sales ratio for luxury single-family homes shifted from a seller’s market at 22.3% in 2023 to a balanced market at 19.4% in 2024. Similarly, the sales ratio for luxury attached homes moved further toward balance, dropping from 20.5% to 17.0% over the same period.

Pent-Up Demand Poised for Release

The potential for declining interest rates could unlock additional inventory, giving buyers increased options and potentially releasing pent-up demand. Evidence from late 2024 already points to this trend, as decreasing rates have contributed to both higher inventory levels and a marked boost in sales activity.

“She-Elites”: Affluent Women as Market Influencers

Affluent women, known as “she-elites,” are emerging as significant influencers in luxury real estate. Women with a net worth exceeding $5 million now own 15.2% of luxury real estate in the United States and 13.1% globally, according to WealthX. Their influence extends beyond ownership, as over 94% of Luxury Property Specialists reported that women are either co-deciders or the primary decision-makers in luxury real estate transactions.

Gen X: The “Luxury Latchkey Generation” on the Move

Gen X stands out as the first group to benefit substantially from the so-called “Silver Tsunami.” Over the past five years, Gen X luxury homeownership has grown by 10%, outpacing all other age groups. Although Baby Boomers still hold more than half of the market share, Gen X is rapidly increasing its presence in the luxury sector.

Multi-Generational “Gen X Homes” and Flexible Design

Flexible home layouts are increasingly in demand, driven by the rise of multi-generational living—a trend prominently led by Gen X buyers. Many in this group are balancing the needs of aging parents and adult children. According to 45% of surveyed Luxury Property Specialists, the most sought-after luxury home designs now include features such as separate living quarters, guest houses, and accessible design elements to accommodate diverse family needs.

Value-Driven Luxury Buyers

Home affordability is set to remain a central theme in 2025, not only for those aspiring to luxury ownership but also for high-net-worth individuals who prioritize value. These buyers are looking beyond price alone, seeking properties that offer unique experiences and long-term returns on investment.

Homes that Nurture: Indoor/Outdoor Living

Luxury buyers are increasingly drawn to homes that seamlessly blend indoor and outdoor living environments. Over 60% of Luxury Property Specialists identified the indoor/outdoor connection as one of the most popular design features among their clients—a 10% increase from the previous year.

Emerging Hotspots for the Wealthy

Location priorities among the wealthy are shifting. Lower taxes, economic opportunities, safety, lifestyle amenities, and favorable climates are now key drivers for luxury buyers. Cities like Dubai, Miami, and Austin are emerging as new hotspots for high-net-worth individuals seeking these advantages.

New Generation of Luxury Developments

Recent luxury developments are being thoughtfully curated to appeal to emerging demographics, such as women, Gen X, and Millennials. These new projects incorporate a range of features including five-star amenities, walkable locations, eco-friendly designs, and climate-resilient technologies, reflecting the evolving preferences of today’s luxury buyers.