Introduction to Luxury Housing
Not all million-dollar homes are created equal. According to Realtor.com’s September Luxury Housing Report, a seven-figure budget buys vastly different realities across the US — from sprawling 4,500-square-foot estates in Atlanta to snug 1,700-square-foot condos in Honolulu.
Luxury Market Trends
The national threshold for entering the luxury market dipped modestly to $1.24 million in September, down 0.5% from August and 2.4% year-over-year. But geography remains the biggest determinant of how far a dollar stretches. In Atlanta, Denver and Dallas, $1 to $2 million listings average more than 4,000 square feet — roughly double the space of comparable properties in Honolulu or San Jose, where median sizes hover around 1,650 to 1,700 square feet.
Realtor.com’s September Luxury Housing Report shows that a million-dollar home can mean wildly different things depending on the ZIP code. rudi1976 – stock.adobe.com
Market Analysis
Nationally, the luxury entry point dipped slightly to $1.24 million, down 0.5% from August and 2.4% year-over-year. Danicha – stock.adobe.com
“We’re seeing a healthy rebalancing in the luxury home market after years of volatility,” Danielle Hale, chief economist at Realtor.com, said in the report. “The modest softening in luxury prices points to a market where buyers and sellers are adjusting expectations in line with broader economic conditions. In many cases, demand remains strong for well-priced homes, especially those that deliver distinctive space, quality or location.”
Luxury Home Sizes and Prices
Nationally, the report finds luxury homes lingering longer on the market — about 79 days for the 90th percentile, one day more than last month and five days longer than a year ago. Ultra-luxury listings — those at the 99th percentile — spend an average of 103 days before selling. But buyers in Atlanta, Denver and Dallas can stretch that budget to more than 4,000 square feet — roughly twice the size of what it buys in Honolulu or San Jose. rodphotography – stock.adobe.com
Priciest Luxury Markets
The million-dollar listing share held steady at 13%, signaling that the slowdown reflects normalization rather than a retreat. Santa Barbara, in California, topped the list of priciest luxury markets, with the top 10% of homes starting at $8.95 million. Heber, Utah ranked second at $6.5 million, boosted by high-end resort demand and limited inventory. Key West; Bridgeport, Connecticut; and Los Angeles rounded out the top five.
Best Value Markets
Meanwhile, Honolulu’s $827 per-square-foot price makes it the least forgiving market for buyers in the $1 to $2 million tier, followed closely by Silicon Valley, where the San Jose–Sunnyvale–Santa Clara metro sits near $828 per square foot. In Hawaii’s capital, $1 million secures just 1,651 square feet at $827 per foot, making it the priciest market per square foot in the $1 to $2 million tier. artdekthoen
Meanwhile, Atlanta tops the value chart with $301 per foot, offering the most room for the money. trongnguyen – stock.adobe.com
Conclusion
Overall, the data suggest luxury real estate is entering a “Goldilocks” phase — neither too hot nor too cold. For buyers, that means more room to negotiate in Atlanta or Denver — and less of it, figuratively and physically, in Honolulu or San Jose. Santa Barbara, California, leads as the nation’s most expensive luxury market, where the top 10% of listings begin at $8.95 million. John – stock.adobe.com
Heber, Utah, ranks second at $6.5 million, driven by resort demand and tight supply. SNEHIT PHOTO – stock.adobe.com
FAQs
Q: What is the current national threshold for entering the luxury market?
A: The national threshold for entering the luxury market is $1.24 million.
Q: Which cities offer the most space for a $1 million budget?
A: Atlanta, Denver, and Dallas offer the most space for a $1 million budget, with average home sizes of over 4,000 square feet.
Q: What is the priciest market per square foot in the $1 to $2 million tier?
A: Honolulu is the priciest market per square foot in the $1 to $2 million tier, with a price of $827 per square foot.
Q: Which city offers the best value for a $1 million budget?
A: Atlanta offers the best value for a $1 million budget, with a price of $301 per square foot.
