Luxury Housing Market: Only Two US Cities Still Defying the Downturn

The luxury housing market, which surged during the pandemic, is now shedding its excess in most regions, but two metros continue to set new highs.

Luxury Housing Market Gains in Minneapolis‑St. Paul and Boise

Realtor.com’s latest analysis shows luxury home prices in Minneapolis‑St. Paul are ↑ 5% above their 2021 peak, while Boise leads with a ↑ 4% premium over pandemic levels after an 87% jump during the buying frenzy.

“The pandemic didn’t create the same luxury market everywhere, and the correction hasn’t played out uniformly,” Realtor.com senior economist Anthony Smith said.

Boston and Bend, Oregon have preserved roughly 89% of their prior gains, bolstered by finance, life‑science professionals and outdoor‑lifestyle appeal, respectively.

Conversely, the Bay Area’s luxury segment has collapsed, with price thresholds slipping nearly $700,000 below pre‑COVID baselines, a trend linked to tech layoffs and an exodus of affluent residents, as reported by Reuters.

Yet a nascent surge in AI‑driven tech salaries is nudging demand upward, a dynamic highlighted by Bloomberg, suggesting a possible rebound.

Nationally, homes priced over $1 million now account for 13.8% of listings, up from under 10% before the pandemic, while the luxury threshold sits around $1.28 million, marking its 26th consecutive monthly dip.

Analysis by: Nathaniel Reed

Wealth Management Correspondent