A million-dollar home used to be the epitome of luxury, but Realtor.com^®'s new What is Luxury Reportshows that the luxury threshold has risen from $796,922 in 2016 to about $1.3 million today. While a $1 million home was comfortably above the luxury bar in 2016, buyers now need to spend closer to $1.6 million to reach that same level of luxury status.

"While a million-dollar home still represents an important benchmark, it's not the luxury marker that it once was nationwide and in many markets," said Danielle Hale, chief economist at Realtor.com^®. "With or without a seven-figure price tag, luxury is often about exclusivity and relative standing in a local market. In many areas a high-end home can rise many multiples above the area's typical home price. Further, with a dramatic rise in home prices, Realtor.com^® data shows just how dramatically the definition of luxury has shifted over the past decade."

The New Luxury Benchmarks
Luxury isn't a fixed price point, that's why Realtor.com^®'s report defines it by the share of the most expensive homes, both nationwide and in each market. Nationally, a $1 million listing used to sit just below the top 5% of homes in 2016 and was still among the top 10% before the pandemic. Today, the thresholds look like this:

• Entry-level luxury: The top 10% most expensive homes nationwide; starts at $1.3 million
• High-end luxury: Top 5% of homes nationwide; starts at $2.0 million
• Ultra-luxury: Top 1% of homes nationwide; starts at $5.4 million, where uniqueness, location, and lifestyle amenities often outweigh traditional valuation.

Nationwide, entry-level luxury homes are listed for nearly three times the median U.S. home price of $439,450 (July 2025), while high-end luxury prices start at nearly five times that, and ultra-luxury climbs to more than 12 times the typical home price.

Where Luxury Costs the Most: Coastal Markets Lead 
Realtor.com^®'s report identified both metro and micro areas across the country with the highest entry-level luxury prices, looking at markets with at least 500 active million-dollar listings in July 2025. While many of these areas are known for overall high housing costs, they also tend to feature wide-ranging real estate markets, where the gap between the typical home price and a luxury property is especially pronounced. Coastal enclaves and vacation havens dominate the nation's highest entry-level luxury prices.

Top 10 Metros With The Highest Entry-Level Luxury Home Prices (July 2025)

The New Luxury Landscape
Although $1 million no longer marks the entry to luxury, it remains a powerful psychological benchmark. Nationwide, million-dollar homes still make up only 13% of listings, and in metros long synonymous with upscale living, they are especially prevalent. These "staple" luxury markets consistently lead in million-dollar inventory – places where high-end living isn't an outlier, but rather the norm.

From California's coastal enclaves to wealth hubs in the Northeast, just 10 metros account for more than a third (36%) of all million-dollar listings nationwide. Their dominance underscores deep and sustained demand for premium real estate, fueled by international appeal, constrained land supply, and concentrations of high-paying jobs.

Top 10 Metros With The Most Million-Dollar Listings (July 2025)