While the national luxury housing threshold increased to $1,205,081 in February, some top U.S. metropolitan areas were offering lower entry-level luxury prices, making these homes more accessible to more buyers.
When analyzing the top 10 percent of the country’s most expensive homes, Realtor.com uses the 90th percentile price point to serve as a baseline for the luxury market in a particular region. Typically, luxury homes start at 2.9 times the median price, while high-end luxury homes start at 4.6 times the median.
Properties considered luxury homes also typically offer upscale amenities and custom designs, and tend to be located in exclusive or desirable areas.
The report indicates that some major markets were offering “luxury for less,” with lower entry-level prices for luxury homes.
Metros across the South and Midwest led the way in offering much lower entry-level prices, paving the way for some buyers to claim a luxury home without spending more than $1 million. The San Antonio–New Braunfels, Texas, metro area earned the top spot for the lowest luxury entry point at $750,510.
Realtor.com chief economist Danielle Hale noted that the luxury sector is continuing to evolve as the market moves into the spring season, with the definition of luxury remaining localized. In some metro areas, he said, buyers can reach the top level for less than $800,000, while in others, $3 million represents a starter-level luxury home.
Seven of the 10 markets with the lowest luxury entry points can be found in the South or Midwest, where extensive development and healthy inventory are keeping prices at bay, according to the report.
“Sun Belt metros allow new-construction luxury to proliferate because land is more available,” Realtor.com senior economist Anthony Smith said in the report.
“A buyer in San Antonio or Charlotte can achieve a luxury lifestyle for a fraction of what they would pay in coastal hubs, often getting significantly more square footage in the process.”
The Houston–Pasadena–Woodlands, Texas, metro offers the country’s second-lowest entry-level luxury housing price at $794,170. Florida’s Orlando–Kissimmee–Sanford metro’s entry prices start at $893,671, while in North Carolina, Charlotte–Concord–Gastonia metro buyers can enter the luxury market with prices starting at $898,840.
In Philadelphia, Pennsylvania, buyers interested in luxury properties will pay about $899,465 to enter the market. Other metros with luxury home entry prices less than $1 million include Chicago, Illinois; Jacksonville, Florida; Atlanta, Georgia; and Dallas, Texas.
In its February Luxury Market Report, the Institute for Luxury Home Marketing noted that smaller metro areas offering quality of life, space, and connectivity are making headway with luxury buyers. While it forecasts that traditional luxury hubs such as New York and Los Angeles will continue to attract both domestic and international buyers, the report noted that demand in different regions is reshaping the luxury market.
The institute reports that the luxury market is expected to grow gradually throughout the year, with modest price gains and slow improvement in inventory levels.
It also suggests that an ongoing “great wealth transfer” from baby boomers to Generation X and millennial heirs will likely drive the market this year.
“These younger affluent buyers tend to prioritize utility, flexibility, and long-term value, so homes are increasingly viewed as integrated lifestyle platforms rather than standalone assets,” the report stated.
Other baby boomers, it noted, are downsizing, but acquiring smaller, upscale properties that emphasize comfort, accessibility, and lifestyle amenities.
For 2026, wellness features such as spa-like bathrooms, dedicated fitness centers, and advanced lighting and air-quality systems are expected to be standards in luxury housing design. In addition, smart-home systems with security and other technology are all part of the new luxury trends.
“Buyers are also favoring turnkey homes that allow immediate enjoyment over renovation projects that introduce uncertainty and delays,” the report noted. Today’s buyers are also seeking homes that support multigenerational living and hybrid work environments, it said.
According to the Realtor.com report, Heber, Utah, maintained its position as the priciest luxury home entry point in the country at $7.25 million. Known for its proximity to Park City and other premier ski resorts, Heber has a luxury entry level that is more than six times the national benchmark. Realtor.com listed the city’s median housing price at $1.14 million and median rent at $3,900 per month.
The Key West–Key Largo, Florida, metro holds second place for the nation’s most expensive luxury home entry points at $5 million, followed by Bridgeport–Stamford–Danbury, Connecticut, at $4.26 million. Other metros earning top dollar for the luxury entry market include Kahului–Wailuku, Hawaii, and Los Angeles–Long Beach-Anaheim, California, both more than $4.2 million. Three other California metros, along with the New York City metro area, all offer luxury housing entry points above $3 million.
The report maintains that coastal locations continue to garner higher prices, particularly in the Northeast and California, where some luxury entry points are five times the local median price. In addition to Los Angeles, top spots for California’s ultra-high luxury housing entry points include San Jose, Santa Rosa, and Oxnard.
Nationwide, the 10 percent most expensive homes begin at about $1.2 million.
