Realtor.com®: Seven Figures Is Not What It Used to Be - Luxury Now Starts at $1.3 Million

Rhea-AI Summary

Realtor.com (NASDAQ:NWSA) released its "What is Luxury Report" revealing a significant shift in luxury home pricing. The entry-level luxury threshold has increased by over 60% from $796,922 in 2016 to $1.3 million in July 2025.

The report establishes new luxury benchmarks: entry-level luxury (top 10%) starts at $1.3M, high-end luxury (top 5%) at $2.0M, and ultra-luxury (top 1%) at $5.4M. Million-dollar homes now represent 13% of U.S. listings, with just 10 metros accounting for over 36% of all million-dollar listings nationwide.

Coastal markets lead in luxury pricing, with Rifle, Colorado topping the list at $16.47M for entry-level luxury homes, followed by Heber, Utah at $6.8M.

Positive

• Entry-level luxury home values have appreciated over 60% since 2016, indicating strong market performance
• Million-dollar homes now make up 13% of U.S. listings, showing increased market presence in the luxury segment
• Top 10 metros account for 36% of all million-dollar listings, demonstrating concentrated wealth in key markets

Negative

• $1 million homes no longer represent true luxury status in many markets
• Buyers need to spend approximately $1.6M to reach the same luxury status as $1M provided in 2016
• Entry-level luxury homes are now priced at nearly 3x the median U.S. home price, indicating decreased affordability

• The entry-level luxury home price has soared by more than 60%, from $796,922 in July 2016 to $1.3 million in July 2025
• Once the hallmark of luxury, million-dollar homes now make up 13% of U.S. listings, and breaking into the top 10% luxury tier today takes nearly $300,000 more

AUSTIN, Texas, Sept. 30, 2025 /PRNewswire/ -- A million-dollar home used to be the epitome of luxury, but Realtor.com^®'s new What is Luxury Report shows that the luxury threshold has risen from $796,922 in 2016 to about $1.3 million today. While a $1 million home was comfortably above the luxury bar in 2016, buyers now need to spend closer to $1.6 million to reach that same level of luxury status.

"While a million-dollar home still represents an important benchmark, it's not the luxury marker that it once was nationwide and in many markets," said Danielle Hale, chief economist at Realtor.com^®. "With or without a seven-figure price tag, luxury is often about exclusivity and relative standing in a local market. In many areas a high-end home can rise many multiples above the area's typical home price. Further, with a dramatic rise in home prices, Realtor.com^® data shows just how dramatically the definition of luxury has shifted over the past decade."

The New Luxury Benchmarks
Luxury isn't a fixed price point, that's why Realtor.com^®'s report defines it by the share of the most expensive homes, both nationwide and in each market. Nationally, a $1 million listing used to sit just below the top 5% of homes in 2016 and was still among the top 10% before the pandemic. Today, the thresholds look like this:

• Entry-level luxury: The top 10% most expensive homes nationwide; starts at $1.3 million
• High-end luxury: Top 5% of homes nationwide; starts at $2.0 million
• Ultra-luxury: Top 1% of homes nationwide; starts at $5.4 million, where uniqueness, location, and lifestyle amenities often outweigh traditional valuation.

Nationwide, entry-level luxury homes are listed for nearly three times the median U.S. home price of $439,450 (July 2025), while high-end luxury prices start at nearly five times that, and ultra-luxury climbs to more than 12 times the typical home price.

Where Luxury Costs the Most: Coastal Markets Lead 
Realtor.com^®'s report identified both metro and micro areas across the country with the highest entry-level luxury prices, looking at markets with at least 500 active million-dollar listings in July 2025. While many of these areas are known for overall high housing costs, they also tend to feature wide-ranging real estate markets, where the gap between the typical home price and a luxury property is especially pronounced. Coastal enclaves and vacation havens dominate the nation's highest entry-level luxury prices.

Top 10 Metros With The Highest Entry-Level Luxury Home Prices (July 2025)

	Top 10 Metros by 90th Percentile Listing Price
Rank	Area	Metro or Micro	10% Most Expensive Listings Starting Point	Million Dollar Listings Count	Multiple to Median Listing Price
1	Rifle, Colo	Micro	$16,475,000	515	9.7
2	Heber, Utah	Micro	$6,800,000	1,029	4.0
3	Key West-Key Largo, Fla	Micro	$4,500,000	713	2.7
4	Los Angeles-Long Beach- Anaheim, Calif	Metro	$3,995,000	10,840	2.4
5	Bridgeport-Stamford-Danbury, Conn	Metro	$3,950,000	587	2.3
6	Kahului-Wailuku, Hawaii	Metro	$3,900,000	724	2.3
7	Santa Rosa-Petaluma, Calif	Metro	$3,499,000	587	2.1
8	San Jose-Sunnyvale-Santa Clara, Calif	Metro	$3,495,000	1,179	2.1
9	Barnstable Town, Mass	Metro	$3,495,000	561	2.1
10	Naples-Marco Island, Fla	Metro	$3,408,844	1,880	2.0

The New Luxury Landscape
Although $1 million no longer marks the entry to luxury, it remains a powerful psychological benchmark. Nationwide, million-dollar homes still make up only 13% of listings, and in metros long synonymous with upscale living, they are especially prevalent. These "staple" luxury markets consistently lead in million-dollar inventory – places where high-end living isn't an outlier, but rather the norm.

From California's coastal enclaves to wealth hubs in the Northeast, just 10 metros account for more than a third (36%) of all million-dollar listings nationwide. Their dominance underscores deep and sustained demand for premium real estate, fueled by international appeal, constrained land supply, and concentrations of high-paying jobs.

Top 10 Metros With The Most Million-Dollar Listings (July 2025)

Rank	Area	Metro or Micro	Million Dollar Listings Count	10% Most Expensive Listings Starting Point	Share of Million Dollar Listing	Multiple to Median Listing Price
	USA	USA	145,006	$1,249,990	13.2 %	2.9
1	New York-Newark-Jersey City, N.Y.-N.J	Metro	11,980	$2,887,829	33.7 %	6.7
2	Los Angeles-Long Beach- Anaheim, Calif	Metro	10,840	$3,995,000	53.7 %	9.3
3	Miami-Fort Lauderdale-West Palm Beach, Fla	Metro	10,074	$2,087,674	20.9 %	4.9
4	Seattle-Tacoma-Bellevue, Wash	Metro	3,147	$1,927,710	31.5 %	4.5
5	Dallas-Fort Worth-Arlington, Texas	Metro	2,998	$994,190	9.7 %	2.3
6	San Diego-Chula Vista-Carlsbad, Calif	Metro	2,849	$2,903,193	46.4 %	6.8
7	San Francisco-Oakland-Fremont, Calif	Metro	2,844	$2,649,775	45.0 %	6.2
8	Boston-Cambridge-Newton, Mass.-N.H	Metro	2,546	$2,603,053	36.7 %	6.1
9	Atlanta-Sandy Springs-Roswell, Ga	Metro	2,485	$938,150	8.7 %	2.2
10	Washington-Arlington-Alexandria, D.C-Va.-Md.-W.Va	Metro	2,457	$1,451,719	18.3 %	3.4

Methodology
All data in this report are sourced from Realtor.com^® listing trends as of August 2025, reflecting active inventory of existing homes, including single-family residences, condos, townhomes, rowhomes, and co-ops. Listings reflect only those posted on MLS platforms that provide listing feeds to Realtor.com^®. New construction listings are excluded unless actively listed on participating MLSs. Luxury segmentation is based on market-specific price percentiles, with the 90th percentile representing entry-level luxury, the 95th percentile marking high-end luxury, and the 99th percentile indicating ultra-luxury. All calculations are based on listing prices, not final sales prices.

Metropolitan and micropolitan areas are defined using the Office of Management and Budget's OMB-2023 delineations, with Claritas 2025 household estimates used for relative comparisons. Where appropriate, we limited analysis to metros or micros with a minimum threshold of active million-dollar listings to ensure meaningful comparisons. Historical listing trend data extends back to July 2016, but year-over-year comparisons in this report use July 2024 as the baseline.

About Realtor.com^®
Realtor.com^® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com^® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media contact: Sara Wiskerchen, press@realtor.com

 

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SOURCE Realtor.com

FAQ

What is considered a luxury home price in 2025 according to Realtor.com?

According to Realtor.com's report, entry-level luxury homes start at $1.3 million (top 10%), high-end luxury at $2.0 million (top 5%), and ultra-luxury at $5.4 million (top 1%).

Which U.S. metro area has the most million-dollar home listings in 2025?

The New York-Newark-Jersey City metro area leads with 11,980 million-dollar listings, representing 33.7% of its total listings.

How much has the luxury home price threshold increased since 2016?

The entry-level luxury home price has increased by more than 60%, from $796,922 in 2016 to $1.3 million in July 2025.

Which market has the highest entry-level luxury home prices in 2025?

Rifle, Colorado leads with entry-level luxury homes starting at $16,475,000, followed by Heber, Utah at $6,800,000.

What percentage of U.S. home listings are priced at $1 million or more in 2025?

13% of U.S. home listings are priced at $1 million or more, with just 10 metros accounting for over 36% of all million-dollar listings nationwide.