Quick Takeaways

  • The luxury home sector is less affected by economic changes than the rest of the market, most likely due to a higher rate of cash purchases, less dependence on the job market, and buyers with more geographical flexibility.
  • Desired amenities are not what they used to be – the pandemic brought outdoor space and home offices back to a premium not seen in years, while an increase in “staycations” have tied pools with offices as the second most popular amenity.
  • Currently, the luxury market is hottest in the Southern United States. Both Austin and Miami have seen huge growth, replacing the classic luxury destinations of California and New York.

Source: 7 Luxury Real Estate Market Trends & How to Buy a Luxury Home in 2022 (2022)

In 2022, 12% of repeat and first-time homebuyers had household incomes of $200,000 or more, while 20% of first-time and repeat home buyers bought homes priced at over $500,000. Additionally, 8% of first-time and repeat home buyers purchased homes over 3,501 square feet.

The luxury housing market has not quite faced the same level of upheaval the rest of the market has seen in the past few years. More cash offers mean less buyers worrying about high interest rates and a volatile economy. One of the hottest luxury trends is purchasing a large swath of land out west, while the southern United States is still the hottest luxury destination.

Working with luxury buyers requires its own set of skills and knowledge. Familiarizing yourself with luxury trends, brands, and even hobbies will help set yourself up for success in the luxury sector. Luxury buyers are looking for vacation-like backyards, at home offices, and restaurant worthy kitchens.

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