The luxury property market has been a wild ride in the past couple of years. Largely tepid in 2019, sales of luxury homes increased by 61% in September through November of 2020, compared with the same period in 2019, according to real estate site Redfin.
Wealthy property owners in New York City fled in stunning numbers, depressing the luxury real estate market worse than in both the 2008 financial crisis and the period immediately following the 9/11 terrorist attacks, the Wall Street Journal reported.
But places like Los Angeles and Miami saw a greater desire for land and larger houses to accommodate being confined at home, and new contracts signed for $1 million-plus houses in Miami-Dade County in November 2020 were up 54% over 2019.
Forbes predicts that demand for exclusive residential properties will continue well into 2021, even as a coronavirus vaccine becomes widely available, as luxury buyers will likely continue to seek out places that offer security, health, safety, and privacy.
To see how much a luxury property will likely set you back in the largest U.S. cities, MyAffordableLuxury.com, a lifestyle blog that covers the luxury market, analyzed the top 10% of listings on Redfin and Zillow (each with a price of at least $500,000, a widely-accepted definition for luxury property) then ranked all the cities based on the highest threshold necessary for a home to be labeled locally as luxury. The data on most expensive listings is from Dec. 15.
Some of the markets, like Detroit and Baltimore, fell short of the description, with the 10% of their respective listings dropping well below the $500,000 mark, so were excluded from the ranking.