A new Redfin analysis found that the typical luxury home nationwide sold for 3.6 times the price of a typical non-luxury home during the three months ending in May 2026, virtually unchanged from the 3.5-to-1 ratio recorded a year earlier. At the same time, luxury home prices increased nearly five times faster than non-luxury home prices.
The data highlights an ongoing divide in today's housing market. While affordability challenges continue to sideline many first-time and move-up buyers, affluent borrowers remain active, creating continued opportunities for loan officers serving luxury markets and high-net-worth clients.
West Palm Beach, Fla., recorded the nation's largest luxury home price premium, with the typical luxury property selling for $4.51 million—8.9 times the area's typical non-luxury home price of $506,609. Nearby Miami ranked second, where the typical luxury home sold for $4.86 million, or 8.8 times the median non-luxury home price.
New York City ranked third with a 5.5-to-1 ratio, followed by Los Angeles (4.9), Phoenix (4.8), Nashville (4.6), Philadelphia (4.6), Tampa (4.4), Anaheim (4.4), and San Francisco (4.3).
"West Palm Beach and Miami are wealth magnets for ultra-rich Americans thanks to Florida's favorable tax environment, warm climate and waterfront lifestyle," said Redfin Principal Economist Sheharyar Bokhari.
"South Florida has evolved into one of the country's most popular destinations for luxury homebuyers. While buyers are drawn by the beaches, climate and international connectivity, Florida's tax advantages remain an important part of the equation for ultra-wealthy households. That combination continues to funnel demand into markets like West Palm Beach and Miami."
Redfin Principal Agent Dina Blau said the profile of buyers relocating to West Palm Beach has also shifted.
"We're seeing strong migration from New York, New Jersey, California and other high-cost metro areas," Blau said. "Many buyers are relocating earlier in life than in past cycles—often in their 40s and 50s—driven by remote and hybrid work, tax advantages and lifestyle flexibility."
Luxury Demand Holds Up Despite Rates
The report underscores how differently luxury buyers are responding to today's financing environment compared with the broader market.
While elevated mortgage rates continue to weigh on affordability for many households, high-end buyers are often less dependent on financing, have significant equity from prior home sales, or purchase with substantial cash. That has allowed luxury demand—and prices—to remain resilient even as overall home sales have slowed.
For loan officers working in affluent markets, the findings suggest that relationship-driven lending opportunities remain stronger than in many entry-level segments. Jumbo financing, wealth management partnerships and specialized lending programs may continue to see steady demand even while conventional purchase volume remains under pressure.
Where The Luxury Gap Is Smallest
Not every market shows such a wide divide between luxury and mainstream housing.
Portland, Ore., recorded the nation's smallest luxury price premium, where the typical luxury home sold for just 2.6 times the price of a non-luxury home. Sacramento, Calif., and Columbus, Ohio followed with ratios of 3.0 and 2.9, respectively.
Other markets with relatively modest luxury premiums included Riverside, Calif.; Cincinnati; Virginia Beach, Va.; Montgomery County, Pa.; San Antonio; Milwaukee; and Indianapolis.
Redfin's analysis examined MLS data covering the three-month period ending in May 2026. The company defines luxury homes as properties estimated to fall within the top 5% of each metro area's price range, while non-luxury homes represent those in the 35th to 65th percentile.
