The Coldwell Banker Global Luxury 2025 Mid-Year Report unveils the five biggest trends fueling today’s luxury real estate market
Coldwell Banker Real Estate LLC, a subsidiary of Anywhere Real Estate Inc. (NYSE: HOUS), today released the Coldwell Banker Global Luxury® program 2025 Mid-Year Report, revealing that while luxury homebuyers continue to view real estate as a key investment in their financial portfolios, they have become more selective and less willing to compromise on their purchases.
The Mid-Year Report provides both a short-term and long-term look at the trends projected to influence the luxury real estate market over the next six months and the next 12 to 24 months. For this report, the Coldwell Banker Global Luxury program analyzed luxury market data from 120 U.S. markets and surveyed more than 200 Coldwell Banker® Luxury Property Specialists to identify five distinct trends shaping today’s luxury real estate landscape.
According to the survey, 68% of Coldwell Banker Luxury Property Specialists surveyed say clients are maintaining or growing their real estate exposure. Another 51% report an increase in all-cash transactions, signaling a shift among affluent home buyers toward leveraging liquid funds over elevated borrowing costs.
As market conditions stabilize and inventory levels improve, many Coldwell Banker affiliated agents report that luxury home buyers are holding fast to their wish lists—unwilling to compromise on lifestyle preferences, property conditions, or luxury features. Furthermore, a growing number of luxury homebuyers are entering the market for the first time driven by significant gains in home equity over the past five years, adding to demand in the high-end segment.
“So far in 2025, we’re seeing a luxury real estate market that isn’t fully bullish or bearish—but rather recalibrating,” said Michael Altneu, Vice President of the Coldwell Banker Global Luxury program. “Affluent home buyers still see real estate as a safe haven to grow and protect their wealth, but as the market balances and more inventory comes online, they can also be more choosy than in recent years. Practical considerations including home affordability, tax strategy, estate planning and long-term investment potential are taking precedence over aesthetics, flashy amenities or location. This could mark the return of what we call ‘smart luxury’—a mindset shift where discernment and strategic decision-making take priority.”
Coldwell Banker Global Luxury Program Mid-Year Report: Top 5 Emerging Luxury Real Estate Trends for 2025
Trend #1: Real Estate Remains a Cornerstone of Wealth Strategy
Nearly 7 in 10 (68%) of Coldwell Banker Luxury Property Specialists say their affluent clients are maintaining or expanding their current real estate exposure. Only 11.3% report clients are decreasing their interest in real estate. When economic uncertainty rises, affluent buyers tend to recalibrate, viewing real estate as both a safe haven and portfolio diversification tool.
Trend #2: “Smart Luxury” – The “No-Compromise Buyer” Meets The “Smart Buyer”
Luxury homebuyers are being strategic, prioritizing aspects of home that create value over aesthetic perfection. 30% of Luxury Property Specialists identified this “no-compromise” mindset as the top current trend.
Trend #3: Move-Up Buyers Enter Luxury Market
Escalating home prices are turning ordinary homeowners into luxury buyers by default. According to the National Association of REALTORS®, national home prices have surged by 47% over the past five years.
“Buyers who once thought luxury was out of reach are now finding themselves in that tier by default,” Altneu said. “They’re coming into the market with significant equity and high expectations—and they’re helping to sustain activity.”
Trend #4: Ultra-Wealthy vs. Aspirational Buyer Split Widens
The luxury market shows a behavioral divide. 20.4% of Luxury Property Specialists report clear differences between aspirational buyers (net worth $1M–$5M) and ultra-wealthy buyers ($30M+).
Trend #5: Cash Purchases Prevail as “Safe Haven” Strategy
96% of surveyed agents report an increase or consistency in cash purchases among luxury buyers. This reflects real estate’s role as a diversification tool with low correlation to stocks.
“Ultra-high-net-worth individuals aren’t just buying one property—they’re building real estate portfolios,” said Jade Mills, president of Jade Mills Estates. “They want hard assets independent of market swings. Real estate becomes a cornerstone strategy, not just a lifestyle purchase.”
Luxury Sector Remains Resilient
New data from The Institute for Luxury Home Marketing shows luxury single-family inventory has surged 19.6%, and attached property inventory is up 14.8% compared to 2024.
- Single-family sold prices: ↑ 1.8% YoY, ↑ 8.0% since 2023
- Attached properties: ↑ 8.4% YoY, ↑ 16.5% over two years
- Single-family sales (first 5 months of 2025): ↑ 1.7% YoY, ↑ 9.0% since 2023
- Attached segment has slightly softened due to rate sensitivity
The full Mid-Year Report is available here.
Methodology
The report was developed using surveys of Coldwell Banker Luxury Property Specialists, data from the Institute for Luxury Home Marketing, National Association of Realtors, and Barton Consulting LLC. Data covers January 1, 2023 to May 31, 2025 across 120 U.S. markets. For more, see methodology on page 40 of the Trend Report.