Spending on luxury homes projected to grow 6pc in US in 2026

March 5, 2026

Modern contemporary living room with kitchen and dining room. The luxury real estate and design business is poised for immense transformation in the year ahead as AI and automation transform what has traditionally been a relationship-driven business

By Luxury Marketer Intelligence

Nearly $38.3 trillion in global wealth will change hands in the next decade – and real estate is at the center of that transfer.

What makes this moment unprecedented is the velocity of real estate changing hands, per the Coldwell Banker Global Luxury 2026 Trend Report.

“Gen X is leading the near-term transfers, but millennials will inherit the most over the next 25 years,” said Michael Altneu, Madison, New Jersey-based vice president of Coldwell Banker Global Luxury, in the report.

In the United States alone, $2.4 trillion in property is expected to transfer over the next 10 years, representing 52 percent of all global property transfers. And the very-high-net worth segment, those with $5 million to $30 million in assets, will drive 65.7 percent of all U.S. real estate transfers.

These aren’t the same buyers their parents were, the report pointed out.

These buyers are less focused on status signaling and more focused on outcomes: quality of life, wellness, flexibility and long-term value. They’re allocating a larger share of their portfolios to real estate than older generations did – particularly in the $3 million to $10 million range – and prioritizing homes they can actively experience, not just hold.

For agents, this signals a critical shift: luxury real estate is no longer viewed primarily as a speculative play. It’s increasingly treated as a cornerstone asset.

“One thing is clear: even as broader market conditions continue to evolve, the luxury market isn’t pulling back,” Mr. Altneu said. “It’s proving durability and evolving into something more intentional, more values-driven and more enduring.

“Nearly 80 percent of Coldwell Banker Global Luxury property specialists describe their local luxury markets as resilient today,” he said. “That stability isn’t accidental. It reflects how affluent buyers are redefining the role real estate plays in their wealth, lifestyle and legacy planning.”

Luxury buyers treating real estate as steady investment
Luxury real estate has never followed a simple cycle. It responds to wealth creation, generational shifts, geopolitical uncertainty, and deeply personal decisions about where, and how, people want to live.

In the U.S., ultra-affluent buyers have increased their wealth by nearly 58 percent between 2020 and 2025. Their real estate holdings have grown 59.9 percent, outpacing the rest of the world where real estate investment grew just 16.3 percent in the same period.

“Think about what that signals,” Mr. Altneu said.

“In a world of market volatility and uncertainty, the wealthy are choosing to put more of their wealth into real estate,” he said. “This isn’t just diversification. It’s intentionality.

“Real estate has become a stabilizing force, a hedge against uncertainty and a foundation for values-driven lifestyle decisions.”

This “nest investing” mindset is particularly pronounced among younger generations who are less status-driven and more value-oriented.

Spending on luxury homes is projected to grow 6 percent in the U.S. this year, with the ultra-high net worth cohort’s spending estimated to rise by 18.5 percent, outpacing even spending on personal luxury goods, per Coldwell Banker Global Luxury.

“When you’re evaluating luxury properties, this context matters,” Mr. Altneu said. “Buyers aren’t just acquiring square footage. They’re building wealth through real estate. They’re making long-term bets on stability and value.

Geography of wealth is shifting
High-net-worth migration increased 42.8 percent in 2023 and is projected to rise another 16.2 percent in 2026. Wealth is moving.

Markets such as Atlanta, San Diego, Nashville, Dallas, Salt Lake City and Minneapolis are stabilizing as new luxury havens.

Pricing, sales and inventory have remained resilient in these markets over the past five years, even as traditional luxury hubs have experienced more volatility.

Today’s luxury buyers are looking at what Coldwell Banker Global Luxury is calling “resilient wealth havens,” markets that offer economic fundamentals, favorable tax environments, long-term market performance and lifestyle quality. But there’s something deeper happening here: mobility has become a hedge.

Affluent individuals have typically always had the ability to live anywhere. Now they’re using that mobility strategically to create flexibility for themselves and their families, weighing stability, climate, safety and lifestyle alongside traditional wealth preservation considerations.

“If you’re considering a move or an investment in one of these markets, recognize that you’re part of a larger shift,” Mr. Altneu said. “If you’re in a traditional hub like New York, London or Miami, understand that your value proposition now includes stability, legacy and reputational strength in ways it didn’t before.”

“Quiet luxury” is over. “Living large” is here
For the past few years, a lot was heard about “quiet luxury,” or understated minimalism, subtle elegance, less is more. That trend is fading fast.

Today’s affluent buyers want more. More space. More bedrooms. More land. More distinction.

Inquiries for single-family homes with five or more bedrooms climbed to 63.7 percent globally this year, per the report. Four-bedroom inquiries rose to 31 percent.

The average luxury single-family home sold in 2025 measured around 4,250 square feet, nearly double the size of a typical new U.S. home.

But “living large” isn’t only about square footage. It’s also about distinction.

Inquiries for unique estates increased 78 percent year-over-year. Castle-style properties grew 35 percent. Land purchases rose 38.2 percent.

Buyers want exceptional locations, remarkable views, meaningful privacy and turnkey readiness.

More than 50 percent of Coldwell Banker Global Luxury’s sold listings this year featured water views. Nearly half referenced privacy, up from 38 percent in 2024. One in four explicitly highlighted modern design.

“The luxury market is leaning into aspiration again,” Mr. Altneu said. “Grand features aren’t being downplayed anymore. They’re being celebrated.”

What discernment looks like now
There’s something else worth noting about this moment: discernment is showing up on both sides of the transaction, per the report.

Buyers are evaluating markets through the lens of resilience, looking at economic fundamentals and long-term performance alongside lifestyle amenities.

Sellers are weighing whether to move on or hold for the right moment, considering what the market will bear and what their property truly offers.

This mutual thoughtfulness is having a stabilizing effect.

Nearly 80 percent of luxury markets can be described as resilient right now, with median prices rising steadily, consistent sales activity, and relatively balanced supply and demand.

THESE TRENDS POINT to something deeper than market cycles. They reveal how the affluent are thinking about wealth, security and legacy in a rapidly changing world.

Luxury real estate is becoming a statement of values, a hedge against uncertainty, and a foundation for how people want to live for decades to come.

“The definition of luxury itself is expanding to embrace space, distinction and personal expression,” Mr. Altneu said.

“Whether you’re buying, selling or advising clients, understanding these forces is the difference between seeing the market as it was and seeing it as it’s becoming,” he said.

Please click or tap here to download Coldwell Banker Global Luxury’s “The Trend Report 2026: The Resilience of Luxury”

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