5 Cities in the US with the Costliest Luxury Homes
In 2022, it looks like the U.S. real estate market will hold its ground and drive more growth. The truth is that the American luxury home market was triumphant during the pandemic crisis. Unlike other industries, the U.S. real estate market bounces back, and prices of luxury homes are soaring to new heights.
According to Realtor.com, the median listing price of a house has increased by $350,000. It represents a 12% increase since last October. All the market data indicates that the luxury market has had a great year. And that’s because the pandemic’s effect on the economy had less of an impact on high-net-worth individuals.
As of now, HNWI buyers are ready to bid for the most luxurious real estate properties in the U.S. Although real estate sales in San Francisco and New York have been slow for the past two years, the value and price range of luxury homes continue to increase at a faster pace.
Market data highlights that price points within luxury homes are not equal in the most expensive cities in the U.S. In fact, there are some significant qualitative and quantitative differences between Los Angeles and New York luxury home prices alone.
On average, a standard luxury home listing is priced around $500,000 in the U.S. But the acceptable price point for a luxury property continues to increase across different states. Keeping that in mind, let’s take a look at the five U.S. cities that list the most expensive luxury homes:
1. New York
New York has become one of the most expensive cities in the U.S. and the entire world. And the same is true when it comes to real estate properties. In NYC, the prices of luxury homes have skyrocketed. In fact, NYC has become a hub for realtors to sell the most expensive homes.
For instance, back in 2019, a luxury penthouse at South Central 220 sold for $238 million. But in NYC, this is just one of the examples of a high-valued transaction of a luxury home. The starting price range of a luxury home is $6.4 million. On the other hand, the median listing price of a luxury home is around $1.3 million in New York City.
However, the same city has a top listing of luxury homes that are over $90 million. Real estate investors understand that the luxury homes market in NYC is in the top-tier and will be competitive for years to come. Out of five boroughs, the most expensive luxury homes are listed in Manhattan, which is the home to some of the most high-valued properties in the world.
2. Los Angeles
Like New York City, Los Angeles also lists some of the most exclusive and high-valued luxury homes in the United States. A luxury home’s median square feet price stands at $1,250 in Los Angeles. The starting price point for a luxury home in L.A. is around $4.5 million, whereas the median listing price is around $975,000. Similarly, the top listing of a luxury home can be as high as $160 million in L.A.
In Los Angeles, an ultra-luxury home building development is categorized as Megamansion luxury real estate bubble. Los Angeles has the distinction to be among the best luxury homes market in the world. In fact, L.A. has become a preferable luxury home market for international and domestic buyers alike.
3. San Francisco
San Francisco is among the few Californian cities that continue to dominate the luxury home market in the U.S. One of the top selling points of luxury homes in San Francisco is that it is a Silicon Valley hub. In San Francisco, a luxury house market’s median square feet price comes down to $1,150.
For instance, it is common to find billionaire homes in various San Francisco areas. Buyers can expect the starting price of a luxury home in San Francisco to be around $3.1 million. The median listing price of a luxury home is around $1.3 million, whereas the top listing can reach $25 million.
4. Washington DC
Washington DC takes centre stage in the political arena because of its government representation. For years, D.C. has been one of the most expensive cities to buy luxury properties. The national capital of the U.S. is one of the most expensive cities to purchase a property.
The median square feet cost of a luxury home is around $1,600 in D.C. The city is home to Jeff Bezos’ 27,000 square feet $23 million luxury house. But since the time of the transaction, the value of this property has almost doubled. Like New York City and Los Angeles, Washing DC also retains high prices for luxury homes.
Buyers find a unique and extensive collection of high-valued real estate properties in Miami. Wealthy buyers take into account Miami Beach, which increases the market value of the home. The median square feet cost of a luxury home is around $1,369 in Miami.
Miami has managed to garner the attention of high-net-worth individuals from all over the world to invest in branded luxury condos close to Miami Beach. The starting price point of a luxury home is around $1.8 million in Miami. The median listing price of a luxury home is $4.4 million, while the top listing can hit $30+ million. In the coming years, buyers can expect the prices of luxury homes in Miami to increase.
In 2022, you’d be surprised how many wealthy real estate buyers have moved to suburbia to escape the urban nightmare. It is one of the main reasons there’s a bidding war taking place over luxury homes in suburban areas. Hence, luxury real estate markets in the most exclusive U.S. cities are not the same.
In fact, the differences become more apparent once you compare the luxury home prices of New York, Los Angeles, and Miami to Houston and Memphis. Fortunately, wealthy buyers can count on the stable and resilient position of the luxury home market despite uncertain economic conditions and upheavals.