Listings for luxury homes are seeing
relatively more competition than homes in the market's
midrange
- Luxury home values are up 3.9% year over year.
- Inventory of luxury homes remains 46.9% below pre-pandemic
levels, a bigger deficit than in the housing market
overall.
- Richmond has the hottest
luxury housing market in the country. Austin is the only major market where luxury
home values have declined throughout the past year.
SEATTLE, July 31,
2024 /PRNewswire/ -- Luxury home value growth, which
has consistently lagged the market's middle tier over the past
several years, has now outpaced appreciation on typical homes for
five consecutive months, a new Zillow® analysis shows.
The typical luxury home nationwide — defined for this analysis
as the most valuable 5% of homes in a given region — is worth about
$1,620,000. Among the 50 largest U.S.
metro areas, the typical luxury home ranges from a low of just
under $750,000 in Buffalo to more
than $5.3 million in San
Jose.
Luxury home values across the U.S. are 3.9% higher than a year
ago. That's faster appreciation than the 3.2% annual growth for the
typical U.S. home. For every month from January 2019 — the earliest year-over-year change
in Zillow's records — through January
2024, typical home values were outpacing luxury homes on an
annual basis. For every month since, luxury home values have been
growing faster.
"Luxury homes can be challenging to sell because the pool of
buyers is so much smaller. That's one reason prices for them
usually grow more slowly," said Anushna Prakash, economic research
scientist at Zillow. "We're seeing a different trend play out this
year. Luxury home buyers are likely less affected by higher
mortgage rates than a typical buyer, especially repeat buyers who
saw their home equity soar over recent years. Many will be able to
pay with cash and skip a mortgage payment altogether."
Luxury home inventory has been slower to recover than inventory
overall, helping to keep prices climbing. Inventory in the luxury
segment is up 15.7% year over year and is 46.9% below pre-pandemic
norms. By comparison, total inventory is 22.7% higher than last
year and about 32.6% below pre-pandemic averages.
The share of luxury listings with a price cut is climbing, but
is tracking below the market as a whole. In June, 20.8% of luxury
listings experienced a price cut, up from 19.4% the previous June.
Among all homes, 24.5% of listings had a price cut.
The luxury home market in Richmond is red hot, with values 16.5% higher
than last year, far surpassing the growth seen in any other major
market. Hartford luxury homes had
the next strongest growth, up 8.6% over the same period. Luxury
home inventory in Richmond is down
13.2% year over year, making it one of only six major markets with
fewer luxury homes for sale than last year. Luxury homes in
Richmond that sold in June did so
after just six days on the market, the fastest rate in the
country.
Austin is the only major market
where luxury home values declined over the past year, down 1.5%.
Home values in Austin overall saw
a meteoric rise during the pandemic, and a building boom in
response to that demand has helped lessen competition for each home
and bring price growth under control.
|
Metro
Area
|
Typical Luxury
Home Value
|
Luxury Home
Value Change
Year over Year
(YoY)
|
Luxury For-Sale
Inventory
Change (YoY)
|
Share of
Luxury
Listings with
a Price Cut
|
Median Days
to Pending for
Luxury Listings
|
|
United
States
|
$1,619,685
|
3.9 %
|
15.7 %
|
1.4 %
|
24
|
|
New York, NY
|
$3,483,722
|
2.2 %
|
-4.4 %
|
0.5 %
|
57
|
|
Los Angeles,
CA
|
$4,642,958
|
3.5 %
|
35.5 %
|
2.1 %
|
31
|
|
Chicago, IL
|
$1,343,781
|
5.6 %
|
0.5 %
|
-0.4 %
|
13
|
|
Dallas, TX
|
$1,635,382
|
5.3 %
|
32.6 %
|
5.4 %
|
22
|
|
Houston, TX
|
$1,415,411
|
4.8 %
|
0.0 %
|
2.1 %
|
23
|
|
Washington,
DC
|
$2,029,263
|
3.4 %
|
11.3 %
|
-3.5 %
|
11
|
|
Philadelphia,
PA
|
$1,269,418
|
4.6 %
|
14.4 %
|
2.2 %
|
8
|
|
Miami, FL
|
$4,077,925
|
2.9 %
|
15.0 %
|
1.4 %
|
83
|
|
Atlanta, GA
|
$1,457,787
|
5.0 %
|
16.8 %
|
1.4 %
|
23
|
|
Boston, MA
|
$2,698,471
|
5.8 %
|
13.7 %
|
-0.7 %
|
17
|
|
Phoenix, AZ
|
$2,037,033
|
7.1 %
|
19.1 %
|
6.2 %
|
39
|
|
San
Francisco, CA
|
$4,298,273
|
1.1 %
|
-4.0 %
|
-1.0 %
|
16
|
|
Riverside,
CA
|
$1,692,781
|
4.6 %
|
21.8 %
|
-0.5 %
|
35
|
|
Detroit, MI
|
$903,679
|
3.7 %
|
11.0 %
|
0.6 %
|
7
|
|
Seattle, WA
|
$2,927,108
|
4.5 %
|
3.2 %
|
0.3 %
|
9
|
|
Minneapolis,
MN
|
$1,188,521
|
0.9 %
|
15.9 %
|
2.3 %
|
26
|
|
San Diego,
CA
|
$3,799,265
|
5.9 %
|
17.3 %
|
-2.7 %
|
24
|
|
Tampa, FL
|
$1,639,706
|
2.7 %
|
80.4 %
|
0.0 %
|
38
|
|
Denver, CO
|
$1,991,133
|
1.1 %
|
11.6 %
|
2.9 %
|
17
|
|
Baltimore,
MD
|
$1,329,549
|
4.6 %
|
13.3 %
|
0.5 %
|
8
|
|
St. Louis,
MO
|
$1,002,017
|
4.8 %
|
8.5 %
|
1.5 %
|
7
|
|
Orlando, FL
|
$1,425,759
|
4.7 %
|
43.2 %
|
1.0 %
|
30
|
|
Charlotte,
NC
|
$1,607,506
|
7.9 %
|
21.2 %
|
5.6 %
|
22
|
|
San Antonio,
TX
|
$1,158,841
|
1.0 %
|
19.6 %
|
0.0 %
|
33
|
|
Portland, OR
|
$1,506,635
|
0.4 %
|
19.3 %
|
-2.1 %
|
20
|
|
Sacramento,
CA
|
$1,794,005
|
2.1 %
|
17.0 %
|
-0.5 %
|
18
|
|
Pittsburgh,
PA
|
$839,418
|
5.2 %
|
1.4 %
|
3.8 %
|
11
|
|
Cincinnati,
OH
|
$949,801
|
5.3 %
|
6.5 %
|
-0.8 %
|
7
|
|
Austin, TX
|
$2,106,787
|
-1.5 %
|
24.7 %
|
1.9 %
|
68
|
|
Las Vegas,
NV
|
$1,587,199
|
7.5 %
|
0.2 %
|
1.7 %
|
42
|
|
Kansas City,
MO
|
$1,041,851
|
4.4 %
|
15.9 %
|
3.5 %
|
8
|
|
Columbus,
OH
|
$1,014,617
|
4.4 %
|
26.8 %
|
1.1 %
|
10
|
|
Indianapolis,
IN
|
$988,246
|
3.2 %
|
12.8 %
|
-2.9 %
|
9
|
|
Cleveland,
OH
|
$810,190
|
7.1 %
|
-4.5 %
|
2.3 %
|
8
|
|
San Jose, CA
|
$5,330,815
|
6.4 %
|
19.1 %
|
-4.7 %
|
10
|
|
Nashville,
TN
|
$2,113,255
|
3.1 %
|
12.1 %
|
2.1 %
|
35
|
|
Virginia
Beach, VA
|
$1,227,058
|
5.6 %
|
10.1 %
|
-2.3 %
|
32
|
|
Providence,
RI
|
$1,861,985
|
7.8 %
|
30.5 %
|
2.6 %
|
20
|
|
Jacksonville,
FL
|
$1,646,706
|
4.3 %
|
36.5 %
|
5.9 %
|
44
|
|
Milwaukee,
WI
|
$1,234,835
|
5.5 %
|
-19.5 %
|
-3.5 %
|
24
|
|
Oklahoma
City, OK
|
$847,637
|
1.7 %
|
24.4 %
|
4.5 %
|
34
|
|
Raleigh, NC
|
$1,489,123
|
6.9 %
|
38.0 %
|
-1.1 %
|
9
|
|
Memphis, TN
|
$860,564
|
2.2 %
|
41.5 %
|
0.6 %
|
40
|
|
Richmond, VA
|
$1,152,228
|
16.5 %
|
-13.2 %
|
1.8 %
|
6
|
|
Louisville,
KY
|
$848,250
|
2.6 %
|
43.5 %
|
-1.0 %
|
9
|
|
New Orleans,
LA
|
$1,033,156
|
0.0 %
|
17.3 %
|
1.1 %
|
42
|
|
Salt Lake City,
UT
|
$1,600,130
|
4.0 %
|
34.2 %
|
0.1 %
|
20
|
|
Hartford, CT
|
$1,004,138
|
8.6 %
|
3.0 %
|
2.5 %
|
7
|
|
Buffalo, NY
|
$748,623
|
4.9 %
|
-5.4 %
|
0.7 %
|
11
|
|
Birmingham,
AL
|
$1,124,634
|
4.0 %
|
19.3 %
|
1.2 %
|
13
|
|
*Table ordered by
market size
|
About Zillow Group
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Zillow affiliate.
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