The landscape of luxury real estate in America is undergoing a remarkable transformation, with affluent homebuyers increasingly looking beyond traditional financial hubs like New York and Miami. According to the latest WSJ/Realtor.com Housing Market Ranking released Friday, luxury buyers are dispersing across the country. The emerging US luxury housing markets include affordable Midwestern cities, premium coastal enclaves and serene Sunbelt retreats.
The latest rankings demonstrate a clear bifurcation in the luxury housing market, with both extremely affordable and extremely expensive locations performing well. Notable markets that dropped from the previous quarter’s top 10 include Nashville, Atlanta, Charlottesville, and Wilmington. According to analysts, these Southeast markets likely fell off not due to waning popularity but because rising inventories have cooled their “hotness” levels as supply begins to outpace demand.
1. St. Louis, Missouri
St. Louis continues to dominate as the top luxury housing market in the first quarter of 2025. The Midwestern city offers remarkable value with a median luxury home price of $646,257 (representing the top 10th percentile of the market), which increased by 7.7% year-over-year.
This affordability, combined with an urban environment and relatively stable climate, makes St. Louis particularly attractive to luxury buyers seeking value without sacrificing amenities.
2. Detroit-Warren-Dearborn, Michigan
Detroit maintains its position as the second-ranked luxury market, despite a slight 2.8% decrease in median luxury home prices to $710,730. Like St. Louis, Detroit offers some of the most affordable luxury housing among the 60 markets analyzed…