The Trends Shaping the High-End Market
Sotheby’s International Realty released its 2026 Luxury Outlook report, analyzing the evolving state of global luxury real estate markets and the economic policies and factors that influence them most. The latest edition offers insights into the trends and developments shaping the sector. After outperforming traditional real estate in both sales and value in 2025, the luxury market is expected to continue its upward trajectory in 2026. Key findings include the US$6 trillion inherited in 2025, a transfer of generational wealth that is becoming a major demand driver for luxury real estate, a 44% surge in foreign buyer activity in the U.S., and the threshold for a luxury home in the U.S. is rising, with national expectations starting at around $1.3 million; higher than in many other countries.
“The continued aim of the Luxury Outlook is to help clients and the wider market navigate a rapidly shifting landscape through data-based and expert insights informed by our global network of real estate advisors. The latest edition continues to offer the strategic intelligence and global perspectives that empower clients to make confident, well-informed decisions,” said Bradley Nelson, Chief Marketing Officer, Sotheby’s International Realty. “As we look ahead to 2026, inventory levels have largely returned to pre-pandemic norms. This renewed balance in the market signals healthier conditions and provides buyers with a wider range of opportunities.”
The 2026 Luxury Outlook report draws on insights from Sotheby’s International Realty agents worldwide who specialize in transactions in the US$10M+ price category. Their expertise is complemented by data from industry leaders including JPMorgan Private Bank, PricewaterhouseCoopers, Cerulli Associates, Henley & Partners, UBS, and the National Association of Realtors (NAR).
Key takeaways from the report are below:
- Luxury real estate continues to outperform the general housing market, driven by sustained wealth creation and less sensitivity to macroeconomic factors.
- Generational wealth transfers reached $6 trillion in 2025, 10% of global GDP and will continue fuelling luxury demand.
- To respond to the changing market conditions, both home buyers and sellers should consider “first mover advantage” as acting decisively benefits them – early movers often secure better deals or faster sales.
- Inventory levels of new construction homes have returned to pre-pandemic norms, creating a healthier and more balanced market. U.S. supply of homes priced $1M is at its highest since 2020.
- Crypto is increasing influencing luxury purchases, especially in markets like Dubai, New York and California. Regulatory changes may allow crypto assets to count toward mortgage qualification.
- 60% of affiliated agents have reported that lifestyle factors and integration of wellness amenities, ski/golf communities as more important than ever in influencing buyer decisions.
- There is significant cross-border demand, the foreign buyer activity surged 44% in the U.S. with Florida, California, Texas and New York as leading destinations.
- 81% of affiliated agents cite security as a top concern; features like gated access, CCTV, backup power and even panic rooms have become increasingly common.
- Growing demand for homes that accommodate multiple generations driven by legacy planning and lifestyle.
- Major tournaments (e.g. 2026 FIFA World Cup, 2028 LA Olympics) can boost property values near host cities, but long-term gains can depend on urban planning.
- The appeal for branded residences continues to grow as high-service, low maintenance living is expanding globally.
“The overall real estate market was more impacted by elevated interest rates and affordability issues, but the luxury real estate market is positioned for continued outperformance. Building on 2025’s robust foundation, the luxury market is seeing increased inventory, growing international homebuyer activity, and a larger percentage of all-cash sales, particularly at the higher end,” said Philip White, President and CEO, Sotheby’s International Realty. “We expect global sales to strengthen, as luxury property buyers—the strongest segment of the market—are less constrained by geography. We are committed to providing clients with the right guidance for each of their real estate portfolios.”
Click here to read the complete report.
The Laughlin Tanner Group is Sotheby’s International Realty’s No. 1 real estate team in Sarasota with $3+ billion in luxury real estate sales, representing buyers and sellers in Sarasota’s best loved neighborhoods.
