U.S. Luxury Housing Diverges Sharply Across Local Markets 

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Luxury home prices stabilized at the end of 2025, while the gap between luxury homes and typical listings varied widely across local housing markets. The national entry point for luxury, defined as the 90th percentile of listing prices, was $1.19 million in December, down just 0.6% from a year ago, according to the December Realtor.com® Luxury Housing Report. The smaller decline compared with earlier months suggests luxury prices overall may be approaching a near-term floor. 

The gap between luxury homes and typical listings varies widely by market. Nationally, luxury homes are priced at about three times the median listing price, but that relationship looks very different across metros. In parts of Connecticut, luxury homes are priced more than five times higher than the local median, reflecting sharp divides between high-end neighborhoods and the broader market. By contrast, in metros like Orlando, Fla., luxury homes are priced much closer to the median, making high-end housing feel more connected to the overall market. 

“Big gaps between luxury and typical home prices aren’t automatically a warning sign,” said Anthony Smith, senior economist at Realtor.com®. “They often point to markets that are highly segmented, where luxury behaves differently from the rest of the housing market. In those places, even small shifts at the high end can create noticeable changes in luxury pricing without spilling over to the median home price.” 

Most expensive luxury markets: declines persist, but vary by metro 

In December, 9 of the 10 most expensive luxury markets still posted year-over-year declines in prices, though several saw smaller drops than last month. Heber, UT remained the nation’s most expensive luxury market, with the top 10% of listings beginning at $6.95 million (+5.8% YoY). Meanwhile, several major California metros continued to reset, with luxury prices down 6% to 15% year over year across Los Angeles, San Jose, Santa Rosa, and Oxnard.