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 luxury residential real estate market in the United States is experiencing significant growth, driven by a combination of factors such as remote work flexibility, early retirements, and favorable mortgage rates. During the COVID-19 pandemic, while the broader real estate sector faced challenges, the high-end market thrived, particularly in coastal and vacation areas. This surge in demand was fueled by the desire for larger homes with dedicated office spaces, as buyers sought to escape urban environments and embrace more outdoor living. The preference for houses over condominiums increased due to the need for social distancing, further propelling the market. The appeal of smart homes, equipped with advanced automation and security features, has also become a key trend, as buyers seek both convenience and enhanced security in their luxury properties.
The competitive landscape of the US luxury residential real estate market is characterized by the presence of both local and international players, with major companies like Toll Brothers, Phil Kean Designs, and Calvis Wyant leading the charge. The market is semi-consolidated, with significant interest from international funds and foreign capital, prompting domestic developers to engage in joint ventures to strengthen their market position. Notable developments include luxury student housing and mixed-use rental communities, which offer high-end amenities and cater to the growing demand for upscale living spaces. The market's expansion is further supported by the increasing popularity of smart home technologies, which offer cost savings and time efficiency, making them highly desirable among affluent buyers.
United 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.
