Market Size of United States Luxury Residential Real Estate Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 3.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Luxury Residential Real Estate Market Analysis
The luxury residential real estate market in the United States is expected to register a CAGR of approximately 3% during the forecast period.
Despite the fact that the overall real estate business was going through challenges during the COVID-19 pandemic, the high-end luxury market was booming. During the pandemic, demand for luxury homes in popular vacation areas, particularly along the coast, surged. The newfound ability of many of these wealthiest buyers to work remotely, more people retiring earlier, and cheap mortgages drove the rush into some of the most naturally beautiful communities across the nation. A fear of cities combined with the desire to spend more time outside gave this market a push.
Over the past two years, many of the buyers have sought larger homes with spaces for offices and for their children to attend school remotely. Houses have become more popular than condominiums after the COVID. As you don't have to share an elevator or gym or anything, it is an efficient arrangement for social distancing. According to the National Association of REALTORS, the most expensive 1% of homes for sale nationally had a median price tag of USD 5.5 million in January 2022. This was a 16.6% increase from the same month in 2021. There has been an increase in demand for vacation and second home spots, particularly along the coastlines, on the beach, on lakes, and in the mountains.
The luxury homes market is booming across the United States. It is the hottest luxury home market right now. The market has drawn so many buyers that the home prices have soared 50% over the past several quarters. Los Angeles has increasingly become a favorite spot of home buyers with the largest share of the market. Los Angeles has some of the most prestigious and exclusive luxury properties in America, with a median sq. feet cost of USD 1250. Its luxury real estate market has global recognition. It is a pre-eminent market for both domestic and international buyers.
US Luxury Residential Real Estate Industry Segmentation
Generally, luxury residential real estate is defined as a real property that has an appraised value of over USD 1 million in the United States. The luxury residential real estate market in the United States is segmented by type and by city. By type, the market is segmented into apartments and condominiums, villas, and landed houses. By cities, the market is segmented into New York, Los Angeles, San Francisco, Miami, Washington DC, and other cities.
| By Type | |
| Apartments and Condominiums | |
| Villas and Landed Houses |
| By City | |
| New York | |
| Los Angeles | |
| San Francisco | |
| Miami | |
| Washington DC | |
| Other Cities |
United States Luxury Residential Real Estate Market Size Summary
The US luxury residential real estate market is projected to grow at a steady rate in the coming years. Despite the overall real estate sector facing challenges due to the COVID-19 pandemic, the high-end luxury market has seen a surge in demand, particularly in popular vacation areas and coastal regions. Factors such as the ability to work remotely, early retirement, and low mortgage rates have driven this growth. Additionally, there has been a shift in preference towards larger homes with office spaces, particularly houses over condominiums, which offer a better arrangement for social distancing. The market for luxury homes in the US is currently thriving, with home prices experiencing significant increases. Cities like Los Angeles have become popular among home buyers due to their prestigious and exclusive luxury properties. The trend of home automation is also becoming a prerequisite in the luxury real estate market, with smart homes offering multiple benefits such as better security and cost savings. The combination of the pandemic and low mortgage rates have led to increased sales of luxury homes. The market is competitive with both local and international players, and the presence of international funds and foreign capital is attracting domestic developers to form joint ventures.
Explore MoreUnited States Luxury Residential Real Estate Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Dynamics
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1.2.1 Drivers
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1.2.2 Restraints
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1.3 Value Chain / Supply Chain Analysis
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1.4 Industry Policies and Regulations
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1.5 Technological Developments in the Sector
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1.6 Industry Attractiveness - Porter's Five Forces Analysis
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1.7 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Apartments and Condominiums
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2.1.2 Villas and Landed Houses
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2.2 By City
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2.2.1 New York
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2.2.2 Los Angeles
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2.2.3 San Francisco
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2.2.4 Miami
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2.2.5 Washington DC
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2.2.6 Other Cities
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United States Luxury Residential Real Estate Market Size FAQs
What is the current United States Luxury Residential Real Estate Market size?
The United States Luxury Residential Real Estate Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)
Who are the key players in United States Luxury Residential Real Estate Market?
Phil Kean Designs, Inc., Toll Brothers Inc., Calvis Wyant, Kean Development and Bob Thompson Homes are the major companies operating in the United States Luxury Residential Real Estate Market.
