According to Coldwell Banker’s 2025 Trend Report, the luxury market is set to see a number of big changes in the next 12 months.
The report predicts that luxury home prices will continue to outperform the traditional market.
Single-family luxury homes saw a 7.6 per cent increase compared to 3 per cent in the traditional market, while luxury condos experienced a 6.5 per cent price growth against 3 per cent in the traditional sector.
Market balance appears to be returning, with the luxury sales ratio percentage dropping from 22.3 per cent in 2023 to 19.4 per cent in 2024.
This shift, combined with anticipated lower mortgage rates and higher housing inventory, suggests improved conditions for both buyers and sellers heading into 2025.
Generation X, which include people aged 44 to 59, is emerging as a dominant force in luxury real estate.
Their ownership has grown 10 per cent over the past five years, positioning them as primary beneficiaries of the upcoming “Silver Tsunami” wealth transfer from Baby Boomer parents.
This demographic is actively driving demand for multi-generational living spaces.
Joshua Baris, a sales associate with Coldwell Banker Realty’s Global Luxury Division, said that market dynamics are changing.
“One thing creating the increase in prices, especially in the luxury marketplace, is proximity to New York City,” Mr Baris said.
“That’s always a huge plus.
“Being in close proximity to such a predominant location for some of the wealthiest companies in the world definitely helps.”
The report identifies a significant shift in gender dynamics within luxury real estate.
Women under 35 now represent 54 per cent of luxury property owners in their age group, while those with a net worth of $5 million or more own approximately 15.2 per cent of the nation’s luxury real estate.
This trend is particularly notable given that men still dominate luxury homeownership in older age groups, holding 59 per cent of ownership among those aged 35 to 64.
Indoor-outdoor living spaces have emerged as a new trend, with buyers increasingly seeking seamless experiences between interior and exterior areas.
The report indicates a growing demand for properties that offer sophisticated outdoor entertainment areas, private gardens and natural elements incorporated into a home’s design.
Personalisation has become another key factor, with luxury buyers seeking unique, customized spaces that reflect their lifestyle and preferences.
This includes dedicated areas for wellness, home offices, and entertainment spaces.
Jade Mills, president of Jade Mills Estates, said this is a key evolution.
“We are seeing an extraordinary evolution in home design that reflects the changing dynamic of luxury real estate,” Ms Mills said.
“Women, especially, are powerful decision-makers that are making critical choices about where and how they live.”
The report also highlights a geographical shift in luxury home preferences, with buyers increasingly looking beyond traditional business hubs like New York, London, and Paris for both primary and secondary residences.
This trend reflects a broader change in work patterns and lifestyle preferences among affluent buyers.
Michael Altneu, vice president for Coldwell Banker Global Luxury, said he was optimistic about the market’s future.
“The luxury real estate market has proven its resilience, even amidst broader market fluctuations, and we are confident that 2025 will see continued consumer optimism,” Mr Altneu said.
“For high-net-worth individuals, real estate remains a constant necessity, and their desire for exceptional properties with unique designs and premium amenities is stronger than ever.
“With increased optimism and a shift in priorities, we anticipate a more dynamic year ahead.”
