The luxury housing landscape is undergoing one of the most profound transformations in decades. For high‑net‑worth buyers, sellers, and investors, real estate is no longer just a place to live — it’s becoming the centerpiece of legacy building, long‑term wealth strategy, and elevated lifestyle design. Here’s what today’s affluent clients need to know about the major trends shaping the luxury market in 2025 and beyond.

1. Luxury Real Estate Becomes the New Legacy Asset

More wealthy individuals are viewing real estate not as a speculative play, but as an identity‑defining, stability‑driven pillar of generational wealth. High‑end properties are now seen as long-term heritage assets — a shift transforming how affluent families buy, invest, and pass on wealth.

2. Wealth and Real Estate Remain Closely Linked in the U.S.

Since 2020, ultra‑affluent Americans with over $5 million in net worth saw wealth rise 58.2%, nearly matched by a 59.9% surge in luxury real estate investment. While global wealth also grew, U.S. buyers remain far more real‑estate‑centric than international investors — reinforcing the nation’s long-standing reliance on property as a wealth engine.

3. Expect Steady Growth: Luxury Prices and Sales Keep Climbing

The 2025 luxury market continues to outperform the traditional housing sector. High-end home sales increased 2.9%, nearly double the broader market’s 1.7%. Prices remain stable and healthy, rising around 3% for single-family homes and 4% for attached properties year-over-year.

For buyers and sellers, this signals confidence, stability, and ongoing demand — even amidst shifting economic winds.

4. New Wealth Havens Are Emerging

The global map of luxury real estate is evolving. Cities like Atlanta, San Diego, Nashville, Austin, Dubai, and Lisbon are emerging as the new resilience markets — offering economic stability, lifestyle appeal, and strong long-term value. These rising stars now show resilience once associated only with powerhouse markets like New York and London.

5. A Historic Wealth Transfer Is Creating New Buyers

Over the next decade, $38.3 trillion in global wealth is set to transfer to the next generation. While Gen X will inherit first, Millennials are projected to receive the largest share of wealth over the next 25 years — fueling a massive wave of new luxury buyers with fresh priorities, modern tastes, and a desire for lifestyle-centric living.

6. The U.S. Will Lead a Global Surge in Real Estate Transfers

Of the $4.6 trillion in property expected to change hands worldwide in the next 10 years, the U.S. will account for nearly 52% — a staggering $2.4 trillion. Much of this activity will come from the very-high-net-worth tier, particularly owners of properties valued between $5 million and $30 million.

7. Luxury Spending Shifts Toward the Home

“Nest investing” is redefining how the affluent spend. Across the U.S., home‑related luxury spending is projected to grow 6% by the end of 2025 — outpacing most other luxury categories. For ultra‑high‑net‑worth Americans, home spending will exceed spending on personal luxury goods by over 18%.

Luxury homeowners are putting more into comfort, design, amenities, outdoor living, and meaningful enhancements that elevate daily life.

8. Turnkey Still Tops the Wish List, But Fixer-Opportunities Are Growing

Move-in-ready homes remain the top target for affluent buyers, favored by 30.2% of luxury specialists. But with turnkey homes commanding 11–30% price premiums, demand for high-quality fixers is rising. Nearly 6 in 10 agents report increased interest in homes with “good bones” — especially in desirable locations where turnkey inventory is tight.

9. Bigger, Bolder, More Unique Homes Are Back

The trend toward smaller, quieter luxury is fading. Demand for significant residences is surging:

• Interest in detached homes rose 15% year-over-year
• Searches for unique estates and castle-style homes are climbing
• 63.7% of single-family inquiries now focus on homes with 5+ bedrooms

Affluent buyers are re-embracing spacious living, privacy, and one‑of‑a‑kind architecture.

10. Today’s Luxury Must-Haves Reflect Multi-Dimensional Living

Affluent buyers now insist on homes that support every facet of modern life. Top priorities include:

• Prime location and breathtaking views
• Move-in-ready or newly remodeled condition
• Privacy and secure parking
• Outdoor living spaces and wellness-focused interiors
• Home offices and multigenerational suites
• Climate-resilient, comfortable, tech-forward design
• Smart-home systems and sustainable features

Luxury is no longer just about aesthetics — it’s about lifestyle, functionality, and future-proofing.

Final Takeaway for Buyers and Sellers

The luxury real estate market is more dynamic, strategic, and opportunity-rich than ever. Whether you’re preparing to buy, sell, or invest, understanding these emerging trends will give you a powerful advantage in navigating 2025’s evolving landscape.