Realtor.com Identifies 13 "Pure Luxury" Housing Markets Across the U.S.

Realtor.com has released a new report spotlighting 13 U.S. housing markets where at least half of active listings surpass the $1 million mark. These locations were specifically chosen for their "pure luxury" characteristics, setting them apart from broader regions with generally high housing costs. The analysis also noted recent shifts in the national luxury housing market, which experienced a period of softness before prices began firming into the spring.

Report Methodology

The Realtor.com report established precise criteria to define these exclusive markets:

• At least 50% of active listings were priced above $1 million.
• Each market had fewer than 500 such listings.

Anthony Smith, a senior economist at Realtor.com, stated that these parameters were set to distinguish "pure luxury" markets from broader areas with high regional housing expenses.

Spotlight on Key Luxury Markets

Several specific locations were prominently featured in the report:

• Nantucket, Massachusetts: Nearly all active listings on this island were priced at $1 million or higher, with a median listing price of $4.08 million. The island typically averages 138 million-dollar listings annually.
• Vineyard Haven, Massachusetts: Located on Martha's Vineyard, this market showed the second-highest concentration, with 90% of active listings exceeding $1 million. The median listing price was reported at $2.4 million.
• Jackson, Wyoming: The main town in the scenic Jackson Hole valley, Jackson recorded a median listing price of $1.75 million.

Factors Driving Scarcity

Scarcity emerged as a defining characteristic across most of these luxury markets, according to Anthony Smith.

"Scarcity was noted as a defining characteristic across most of these luxury markets."

• Island Locations: Nantucket and Vineyard Haven exemplify this due to their finite land availability and strict building and preservation codes.
• Conservation Areas: In non-coastal locations such as Jackson, significant land is designated for conservation, with only 3% of the Jackson Hole area being privately owned.

Geographic Spread and Unique Inclusions

The identified luxury markets are distributed across the United States. Five of these exclusive hubs are located in California, with other notable inclusions like Kapaa, Hawaii, and Hailey, Idaho.

Petoskey, Michigan was highlighted as one of the more accessible markets on the list, with 53% of its active listings priced above $1 million and a median listing price of $1.1 million. Petoskey offers appealing waterfront views, including on Little Traverse Bay, and convenient ski access. The ultra-luxury threshold (representing the top 1% of homes) in Petoskey begins at nearly $8 million. In stark contrast, the same ultra-luxury threshold starts at approximately $59.2 million in Rifle, Colorado.

Luxury Market Performance and Outlook

Anthony Smith indicated that the luxury housing market has shown signs of softness, aligning with trends observed in the overall housing market.

In March, the national luxury threshold, which represents the 90th percentile of homes, stood at $1.25 million, marking a 2.9% decrease year-over-year. The overall median price across the market also experienced a 2.2% annual decline during this period.

However, prices began firming up into the spring. From February, the luxury threshold increased by 3.7%, and the overall market saw a 3% increase, signaling a potential recovery.