Summary
A recent study by Realtor.com shows that the cost to buy a luxury home in the U.S. has increased significantly. Homes that used to be considered luxury at $1 million now typically start at $1.3 million or more. The top luxury homes in certain areas are priced even higher due to increased demand and limited availability.
Key Facts
- The luxury home price threshold in the U.S. rose from about $797,000 in 2016 to $1.3 million today.
- A $1 million home was once in the top 5% of the most expensive homes but now ranks lower.
- Homes in the top 5% now start at $2 million, and the top 1% at $5.4 million.
- The increase in luxury home prices is due to high demand and a shortage of homes for sale.
- Entry-level luxury home prices are nearly three times the typical U.S. home price.
- Cities like Rifle, Colorado, and Heber, Utah, have some of the highest entry-level luxury home prices, with homes priced at over $16 million and $6 million respectively.
