Local Markets Show Ongoing Divide as National Luxury Threshold Declines
In August, the national entry point for luxury housing decreased to $1,200,005, representing a 4.0% decline from July and the same month last year, which marks the 29th consecutive month of annual decreases, according to the Realtor.com August Luxury Housing Report
Further, price thresholds have fallen across all luxury tiers, with the threshold for the top 5% of listings decreasing by 4.2% year over year, while the top 1% saw a decline of 4.6%. Concurrently, the gap between the starting point of luxury and the beginning of ultraluxury varies significantly by market.
Additionally, luxury listings are moving more quickly compared to the previous year. Listings at the 90th percentile had a median market duration of 74 days, which is four days shorter than last August, although it is seven days longer than in July.
“Luxury is not defined by one national price point,” said Anthony Smith, Senior Economist at Realtor.com. “The distance between the top 10% and the top 1% shows how each market is structured. Some have a broad, deep luxury tier, while others pair a more accessible high-end market with a small group of trophy properties.”
| Pricing | August 2026 | Monthly Change | YoY Change |
| Luxury Threshold 90th Percentile | $1,200,005 | -4.0 % | -4.0 % |
| High-End Luxury Threshold 95th Percentile | $1,894,230 | -4.1 % | -4.2 % |
| Ultra Luxury Threshold 99th Percentile | $5,163,712 | -4.9 % | -4.6 % |
| Million-Dollar Listing Share | 12.7 % | -0.5pp | -0.5pp |
Although seasonal easing is customary at this time of year, the monthly decrease was more pronounced than normal. The upper tiers also experienced a decline, with the 95th-percentile threshold decreasing to $1,894,230 and the 99th-percentile threshold dropping to $5,163,712. Listings in the 95th percentile remained on the market for 82 days, whereas those in the 99th percentile were listed for 98 days. The average listing duration was 60 days, which has not changed since August 2025.
“August shows a luxury market in recalibration, with mixed signals across measures,” Smith said. “Listings are moving faster than a year ago, but price thresholds and the share of million-dollar listings are lower, while the market has slowed from midsummer. The data point to a market adjusting in several directions at once.”
Which Metros Claim the Highest Luxury Entry Point?
In August, the Los Angeles metro area reported the highest luxury entry point at $3,919,381, despite experiencing a 1.9% decline from the previous month. Following closely was Kahului-Wailuku, Hawaii, with an entry point of $3,908,500, while Bridgeport-Stamford-Danbury, Connecticut, dropped to third place at $3,881,000 after a 6.0% decrease for the month. The three markets are separated by less than 1%.
Among the ten most expensive markets, Naples-Marco Island, FL, and San Jose-Sunnyvale-Santa Clara, CA, were the only areas to report monthly increases. Naples saw a rise of 1.1%, reaching $3,736,279, and has increased by 9.4% compared to the previous year. San Jose experienced a 0.8% increase to $3,300,000, marking its second consecutive month of growth.
The high-end market in the Bay Area continues to reflect the wealth dynamics associated with the technology sector. A recent analysis by Realtor.com indicates that AI equity liquidity is contributing to the sustained elevation of luxury down payments in the Bay Area, as technology professionals convert their equity into cash for home purchases.
Luxury markets differ significantly in the extent to which prices exceed the entry point. On a national scale, the top 1% of listings begins at $5.16 million, which is 4.3 times the luxury threshold of $1.2 million. Hilo-Kailua exhibits the largest disparity at 6.2 times its local threshold, followed by Miami-Fort Lauderdale-West Palm Beach at 5.8, and Los Angeles-Long Beach-Anaheim and Port St. Lucie, Florida, both at 5.6.
Miami further exemplifies the market’s depth: with nearly 41,000 listings, approximately 400 homes fall within its top 1%. Meanwhile, Los Angeles, Miami, and New York boast the largest number of listings exceeding $10 million, with 634, 601, and 554, respectively.
Top 10 Most Expensive Metropolitan Luxury Markets:
| Rank | Area | 10% Most Expensive Listings Start at: | 10% Most Expensive MoM | 10% Most Expensive YoY | Average Annual Million-Dollar Listings Count | Multiple to National Luxury Entry |
| 1 | Los Angeles-Long Beach-Anaheim, CA | $3,919,381 | -1.9 % | -1.9 % | 9,173 | 3.3 |
| 2 | Kahului-Wailuku, Hawaii | $3,908,500 | -1.1 % | 0.2 % | 709 | 3.3 |
| 3 | Bridgeport-Stamford-Danbury, CT | $3,881,000 | -6.0 % | -1.7 % | 524 | 3.2 |
| 4 | Naples-Marco Island, FL | $3,736,279 | 1.1 % | 9.4 % | 2,123 | 3.1 |
| 5 | San Jose-Sunnyvale- Santa Clara, CA | $3,300,000 | 0.8 % | -5.6 % | 1,074 | 2.7 |
| 6 | Oxnard-Thousand Oaks-Ventura, CA | $2,800,000 | -5.1 % | -9.7 % | 629 | 2.3 |
| 7 | Crestview-Fort Walton Beach-Destin, FL | $2,798,930 | -0.2 % | -1.8 % | 1,328 | 2.3 |
| 8 | San Diego-Chula Vista-Carlsbad, CA | $2,706,854 | -2.2 % | -6.7 % | 2,214 | 2.3 |
| 9 | New York-Newark- Jersey City, NY-NJ | $2,587,959 | -9.3 % | -10.4 % | 11,437 | 2.2 |
| 10 | Atlantic City- Hammonton, NJ | $2,499,000 | -4.5 % | 2.3 % | 541 | 2.1 |
Note: The July Luxury Housing release referred to a 29-month streak. The correct count for July was 28 months; with August’s decline, the streak now stands at 29 consecutive months.
To read the full report, click here.
