Luxury Home Price Growth Slows In Several Unexpected Markets

Amid soaring real estate prices, several cities have reported minimal increases in luxury home prices over the past four years — defying a broader market trend that has seen home prices grow by a third in most areas over the same period.

While luxury real estate typically saw price spikes during the pandemic, markets like Washington, DC, Toledo, Ohio, and Winston-Salem, North Carolina, have seen some of the smallest increases or even decreases in luxury home prices, according to a Realtor.com report.

The stagnant price growth does offer potential opportunities for buyers seeking high-end properties at relatively lower prices in those unexpected locales, however, it's important to understand how the market got there.

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Unique market conditions during the pandemic created a scenario where supply and demand dynamics shifted. As the world adapted to remote work, many well-compensated professionals seized the opportunity to relocate, opting for suburban and rural settings over urban centers. 

That migration was less pronounced in the luxury market of densely populated cities, where high real estate prices and a relatively fixed supply prevented the sharp spikes seen in more flexible markets.

In Washington, DC, for instance, the price of luxury homes has decreased slightly over the past four years. In April 2020, DC homes were priced above $2,995,900. Currently, luxury home prices have dropped to $2,972,500, marking a decrease of roughly 1% compared to four years ago.

In Toledo, the situation is similarly favorable for luxury homebuyers. The report noted that the most expensive 5% of home listings currently start at $336,000, a price well below the national median of $430,000. 

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Moving to Winston-Salem, North Carolina, the increase in luxury home prices has been modest. From April 2020 to April 2024, the most expensive 5% of listings rose from $938,888 to $998,450, marking a 6% increase.

That growth rate is much lower than in many other parts of the country, where luxury prices have skyrocketed.

"These places didn’t see that same pandemic boom in prices all around," Hannah Jones, a senior economic analyst at Realtor.com, said in the report. "So it makes sense that they haven’t seen the same kind of four-year luxury price growth."

The report said the pandemic has reshaped where and how people choose to live. As normalcy returns, the patterns of the past four years provide insights into potential future movements in the luxury real estate market.

Markets that have shown stability or modest growth could become increasingly attractive as buyers seek value in an uncertain economic landscape. The 10 luxury areas where home price growth has slowed include the following.

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