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Luxury real estate is booming in these 10 unexpected cities in 2024

Luxury real estate prices are on an upward trajectory, exceeding expectations and setting new standards, particularly in select cities across the United States. Forget the coasts, these high-end homes are booming in unexpected cities like Savannah and Raleigh. In recent years, the high-end real estate market has undergone significant changes due to various factors, including changes in lifestyle preferences and economic dynamics. Let's explore the cities where luxury property prices have seen a notable increase.

Unprecedented rise in luxury real estate

If you've got your eye on a sprawling property with a pool and ocean views, buckle up – the luxury real estate market shows no signs of slowing down in certain parts of the country. While the real estate market as a whole has seen some price corrections, certain cities have become havens for wealthy buyers, catapulting luxury home prices into the stratosphere.

The COVID-19 pandemic sparked an unprecedented rise in home prices, with the luxury segment emerging as the leader, according to Realtor.com. With historically low mortgage rates and changing work habits favoring remote living locations, the lure of spacious homes and tranquil surroundings became irresistible to affluent buyers.

While many regions experienced a temporary increase and subsequent stabilization, certain cities experienced a steady rise in luxury home prices, defying market norms.

Oases for retirees and affordable luxury

Cities like West Palm Beach, Florida, Lake Havasu City, Arizona, and Reno, Nevada, saw exponential increases in luxury home prices, with increases exceeding 100%. Known for their warm climate and picturesque landscapes, these areas have become magnets for retirees seeking an idyllic lifestyle.

The appeal of sunny weather and wide-open spaces, coupled with the equity accumulated by retirees, has put these cities in the luxury real estate spotlight. Despite fluctuations in other markets, demand for upscale real estate in these areas remains robust, attracting affluent buyers seeking a higher quality of life.

Luxury demand is moving south

Southern cities like Savannah, Georgia, and Raleigh, NC, have become luxury real estate hotspots due to a combination of historic charm and economic opportunities. The appeal of Southern hospitality and lower cost of living has attracted discerning buyers seeking a mix of luxury and affordability.

Savannah, with its scenic landscapes and rich heritage, has seen a rise in luxury home prices, reflecting the growing appeal of Southern living. Likewise, Raleigh's booming technology sector and vibrant community make it an attractive destination for buyers seeking value and quality of life.

Vacation destinations are transforming luxury real estate

Luxury vacation markets such as East Hampton (NY) and Park City (UT) have seen a resurgence in demand, driven by a desire for leisure and relaxation. The rise of hybrid work models has made owning a vacation home more attractive and led to an increase in luxury property prices in these sought-after destinations.

The appeal of beachfront properties in East Hampton and ski-in/ski-out residences in Park City have caught the attention of wealthy buyers looking for exclusive retreats. Despite their high price, these properties offer unparalleled amenities and lifestyle opportunities, making them desirable investments in today's market.

Unique dynamics of Midland, TX

Midland, TX is a unique case in luxury real estate where prices are rising significantly despite the modest population. Fueled by thriving oil operations and a booming economy, Midland has attracted buyers with significant purchasing power and driven up prices in the luxury segment.

The influx of wealthy buyers combined with limited supply has created a competitive landscape in which luxury properties command premium prices, reinforcing the city's status as a rising star in the luxury real estate market.

Top 10 Luxury Real Estate Markets WWith significant price increases

Since 2020, luxury home prices have experienced a remarkable increase, reaching new heights in several major cities across the United States. This increase reflects changing dynamics in consumer preferences and economic factors and is driving demand for upscale real estate in select markets.

Here's a closer look at the cities where luxury home prices saw the most significant increases since 2020:

1. West Palm Beach, Florida

  • April 2020: The most expensive 5% of listings priced at $1,653,750+
  • April 2024: The most expensive 5% of listings priced at $4,486,250+
  • increase: 171%
  • Number of offers over $4,486,250 in April 2024: 111

2. Savannah, Georgia

  • April 2020: The most expensive 5% of listings priced at $1,307,175+
  • April 2024: The most expensive 5% of listings priced over $3,103,000
  • increase: 137%
  • Number of offers over $3,103,000 in April 2024: 33

3. Lake Havasu City, AZ

  • April 2020: The most expensive 5% of listings cost $925,125+
  • April 2024: The most expensive 5% of listings priced at $1,954,375+
  • increase: 111%
  • Number of offers over $1,954,375 in April 2024: 28

4. Reno, NV

  • April 2020: The most expensive 5% of listings priced at $1,709,750+
  • April 2024: The most expensive 5% of listings priced over $3,436,950
  • increase: 101%
  • Number of offers over $3,436,950 in April 2024: 31

5. East Hampton, NY

  • April 2020: The most expensive 5% of listings priced over $7,607,000
  • April 2024: The most expensive 5% of listings priced at $14,756,250+
  • increase: 94%
  • Number of offers over $14,756,250 in April 2024: 15

6. Park City, UT

  • April 2020: The most expensive 5% of listings priced at $6,850,800+
  • April 2024: The most expensive 5% of listings priced at $12,771,250+
  • increase: 86%
  • Number of offers over $12,771,250 in April 2024: 40

7. Raleigh, NC

  • April 2020: The most expensive 5% of listings priced over $1,395,000
  • April 2024: The most expensive 5% of listings priced at $2,486,200+
  • increase: 78%
  • Number of offers over $2,486,200 in April 2024: 55

8. Sevierville, TN

  • April 2020: The most expensive 5% of listings priced at $1,182,250+
  • April 2024: The most expensive 5% of listings priced over $2,100,000
  • increase: 78%
  • Number of entries over $2,100,000 in April 2024: 68

9. Midland, TX

  • April 2020: The most expensive 5% of listings priced at $898,713+
  • April 2024: The most expensive 5% of listings priced at $1,593,975+
  • increase: 77%
  • Number of offers over $1,593,975 in April 2024: 23

10. Toms River, NJ

  • April 2020: The most expensive 5% of listings priced over $870,050
  • April 2024: The most expensive 5% of listings priced at $1,499,860+
  • increase: 72%
  • Number of offers over $1,499,860 in April 2024: 20

These cities exemplify the robust growth in luxury home prices and reflect the evolving landscape of upscale real estate markets across the country.

So if you're looking for a luxurious oasis to call home, consider these top destinations where luxury living thrives. Keep in mind that due to the limited supply of luxury real estate and the influx of wealthy buyers, prices will continue to rise due to the laws of supply and demand. Do your research, explore your options, and be prepared to make a move when finding your dream home in this ever-evolving market.


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