In the three months ending May 31, the median U.S. luxury home sale price increased 4.7% year-over-year to $1.37 million, more than tripling the 1.5% increase in non-luxury sale prices, according to a recent report from Redfin. The rising demand for luxury homes is a major factor driving up premium costs. Luxury house pending sales up 5.2% year-over-year, the biggest increase since December 2024. In contrast, non-luxury pending sales increased by 3.6%, a slowdown from the previous month.
Because they are less affected by the financial instability and affordability issues that many Americans are currently confronting, high-end homebuyers are more active. Due to persistently high mortgage rates and property prices, which keep many normal home seekers out of the market, overall demand for homes has been rather weak.
Additionally, some potential purchasers are reconsidering making a significant purchase because to the economic uncertainties brought on by the back-and-forth around the Iran conflict, inflation, and the potential for the Fed to raise interest rates. In contrast, ultra-wealthy Americans are able to afford expensive housing and are able to make large purchases even during 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.”
Luxury Market Summary — Three Months Ending May 2026
| Metric | Luxury | Non-Luxury |
|---|---|---|
| Median sale price | $1,374,470 | $377,477 |
| Median sale price (YoY change) | 4.7% | 1.5% |
| Pending home sales (YoY change) | 5.2% | 3.6% |
| Homes sold (YoY change) | 2% | 2% |
| New listings (YoY change) | 1% | -0.4% |
| Active listings (YoY change) | 0.4% | 1.2% |
| Median days on market | 49 | 44 |
| Median days on market (YoY change) | 5 | 3 |
Metros Leading the Nation in Luxury Home-Price Growth
Of the 50 most populous U.S. metro areas, Tampa, FL, saw the largest year-over-year increase in luxury property prices (15.6%), closely followed by Miami (14.2%). In contrast, non-luxury prices decreased by 0.7% in Miami and 0.5% in Tampa.
Because wealthy buyers are purchasing houses in the Sunshine State, luxury prices in coastal Florida are growing while non-luxury prices are gradually declining. Tampa ranks fourth with a 20.8% increase in pending sales, West Palm Beach ranks fifth with an 18.5% increase, and Miami ranks seventh with a 14.6% increase, making up three of the 10 U.S. metro areas with the largest increases in luxury pending sales.
Florida’s favorable tax environment, warm temperature, and waterfront lifestyle attract billionaires, tech entrepreneurs, CEOs, and other wealthy Americans, creating a robust demand for high-end houses even as the state’s overall housing market slows in some areas. Ultra-wealthy Americans are drawn to places like Miami and West Palm Beach. According to Redfin, every month, Florida usually tops Redfin’s list of the most expensive homes sold in the U.S, with extravagant transactions raising median luxury prices.
The only metro areas where pending luxury sales are increasing more quickly than in Florida are San Francisco, Nashville, Tennessee, and San Diego. The largest rise of any metro area in this analysis was the 45.9% year-over-year increase in pending sales of luxury residences in San Francisco, followed by the 24.5% increase in Nashville and the 22.5% increase in San Diego.
Due in large part to the AI growth, the Bay Area’s luxury market is booming, with many IT workers investing their wages and bonuses in real estate. As previously said, Nashville, TN, is drawing a large number of affluent residents who relocate in search of employment and Tennessee’s advantageous tax climate. Some wealthy home seekers are selecting coastal San Diego over areas like Beverly Hills due to its seclusion, slower pace of life, and access to the beach. San Diego is seeing some spillover from Los Angeles.
In terms of sales, during the three months ended May 31, new listings of luxury residences in the United States rose by 1% annually. In contrast, non-luxury new listings have decreased by 0.4%. Owners of luxury properties are a little more inclined to list than owners of ordinary homes, probably because now is a good time to cash out due to high prices and strong demand. However, wealthy homeowners have little incentive to sell because many of them are locked into low mortgage rates, selling expensive homes is discouraged by taxes, and many wealthy Americans may be able to move into a new home while keeping their old one.
Additional Metro-Level Luxury Highlights — Three Months Ending May 2026
- Prices: Luxury prices rose most in Tampa, FL (15.6%), Miami (14.2%) and Las Vegas (13.7%). They fell in just four metros: New Brunswick, NJ (-4.3%), Oakland, CA (-1.8%), Detroit (-1%) and Dallas (-0.3%).
- Pending sales: Luxury pending sales rose most in San Francisco (45.9%), Nashville, TN (24.5%) and San Diego (22.5%). They fell most in Seattle, WA (-14.8%), Nassau County, NY (-14.3%) and Baltimore (-10.4%).
- Closed home sales: Luxury home sales rose most in San Francisco (46.3%), Tampa, FL (27.4%) and Portland, OR (13.1%).They fell most in Anaheim, CA (-16.9%), Orlando (-13.2%) and Seattle, WA (-13%).
- New listings: Luxury new listings rose most in Warren, MI (28.2%), Columbus, OH (12.4%) and Nashville, TN (11.4%). They fell most in Las Vegas (-16.5%), Anaheim, CA (-15.7%) and Denver (-15.7%).
- Active listings: Luxury active listings rose most in Warren, MI (20.5%), Seattle, WA (13.9%) and Detroit (12.8%). They fell most in Anaheim, CA (-23.2%), New York (-18.6%) and Miami (-17.2%).
- Median days on market: In Pittsburgh, the typical luxury home that went under contract did so in 54 days, down 9 days from a year earlier—the biggest decrease among the metros Redfin analyzed. Next came St. Louis (-7) and Austin, Texas (-6). The biggest increases were in Miami (+24 days), Las Vegas (+23) and Nassau County, NY (+19).
Note: Redfin’s metro-level luxury data is based on an analysis of the 50 most populous U.S. metropolitan areas; we included the 49 with sufficient data. All changes below are year-over-year.
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