Key Details:
- According to Realtor.com’s September 2025 Housing Market Luxury Report, luxury benchmark prices fell 2.4% year over year to $1.24M, while ultra-luxury listings dropped 5.7% to $5.41M.
- Homes priced between $1M and $2M averaged 2,994 sq. ft. nationally, ranging from 4,530 sq. ft. in Atlanta to just 1,651 in urban Honolulu.
For buyers in today’s cooling luxury market, a million dollars can buy very different lifestyles depending on where you shop.
According to the latest Realtor.com Housing Market Luxury Report, a $1 million home in Atlanta comes with about 4,500 square feet of space, while that same budget in Honolulu barely covers 1,700.
That difference reflects a larger trend: luxury prices are easing nationwide, giving high-end buyers more room in inland markets, while coastal metros remain defined by scarcity and prestige.
Luxury Prices Cool as Market Normalizes
Realtor.com® defines “luxury” as the top 10% of home listings by price. In September, that national benchmark slipped for the fourth consecutive month to $1.24 million, down 0.5% month over month and 2.4% year over year.
At the higher tiers, prices fell even more: the 95th percentile dropped 1.2% to $1.95 million, while the ultra-luxury segment (top 1%) declined 0.2% to $5.41 million, marking a 5.7% annual drop.
Chief Economist Danielle Hale framed the change as a healthy correction rather than a downturn.
“We’re seeing a healthy rebalancing in the luxury home market after years of volatility. The modest softening in luxury prices points to a market where buyers and sellers are adjusting expectations in line with broader economic conditions. In many cases, demand remains strong for well-priced homes, especially those that deliver distinctive space, quality or location.”
Luxury listings also took longer to sell in September, with the median time on market rising to 79 days, one day longer than August and five days longer than last year.
Homes in the top 1% lingered for about 103 days, roughly 50 days longer than typical listings, which reflects a return to historic norms after years of intense buyer competition.
Where $1 Million Buys the Most (and Least) Space
Nationally, homes priced between $1 million and $2 million averaged 2,994 square feet in September, at a cost of about $467 per square foot. But in several inland metros, buyers got far more for their money.
The top five metros where $1 million stretches the furthest were:
- Atlanta, GA: 4,530 sq. ft. | $301/sq. ft.
- Denver, CO: 4,272 sq. ft. | $326/sq. ft.
- Minneapolis, MN: 4,162 sq. ft. | $337/sq. ft.
- Houston, TX: 4,112 sq. ft. | $348/sq. ft.
- Dallas, TX: 4,072 sq. ft. | $340/sq. ft.
At the other end of the spectrum, space came at a premium in some of the country’s most exclusive coastal markets.
The metros where $1 million buys the least square footage were:
- Honolulu, HI: 1,651 sq. ft. | $827/sq. ft.
- San Jose, CA: 1,688 sq. ft. | $872/sq. ft.
- San Francisco, CA: 1,855 sq. ft. | $771/sq. ft.
- Los Angeles, CA: 1,987 sq. ft. | $711/sq. ft.
- New York, NY: 2,048 sq. ft. | $694/sq. ft.
Senior Economist Anthony Smith said many high-end buyers are shifting their definition of “value.”
“Luxury buyers are increasingly seeking value, and that doesn’t always mean a lower price tag, but rather more home for the money. In markets like Honolulu or the Bay Area, buyers are paying for proximity, views, and prestige, not square footage.
“By contrast, in inland metros across the South and Midwest, high-end buyers can often find larger, newer homes with land and amenities that would cost two or three times as much in more supply-constrained coastal metros.”
The Most Expensive Luxury Markets
Even as national luxury prices ease, ultra-high-end enclaves remain in a class of their own.
- Santa Barbara,CA, topped the list with the 90th-percentile price beginning at $8.95 million.
- Heber, UT, ranked second at $6.5 million, driven by resort demand and limited inventory.
- Key West, FL, rounded out the top three at $4.6 million.
Rounding out the top 10:
- Bridgeport–Stamford-Danbury, CT ($4.26M)
- Los Angeles-Long Beach-Anaheim, CA ($3.99M)
- Kahului-Wailuku, HI ($3.82M)
- San Jose-Sunnyvale-Santa Clara, CA ($3.73M)
- Santa Rosa-Petaluma, CA ($3.58M)
- Barnstable Town, MA ($3.5M)
- Naples-Marco Island, FL ($3.39M)
The numbers tell a story of normalization, not decline. While luxury prices have softened modestly, demand for quality homes in desirable markets remains steady. Inventory is growing, timelines are lengthening, and buyers are gaining leverage, particularly those willing to explore markets beyond the coasts.
The data highlights a key opportunity: guide clients toward markets where luxury dollars go further, or price listings competitively in high-demand areas where space is limited.
The best-positioned agents will be those who can help clients see both sides of that equation, the value of location and the value of space.
