Despite macroeconomic headwinds, the $10M+ luxury segment is experiencing unprecedented demand. We examine the forces driving this bifurcated market.

The luxury real estate market has long operated by its own rules, and 2025 is proving no different. While the broader housing market continues to adjust to a higher interest rate environment, properties priced above $5 million are experiencing some of the strongest demand dynamics we've seen in a decade.

This report examines the key drivers, the geographic markets leading the charge, and what sophisticated investors should be watching over the next 18 months.

The bifurcation we're seeing is stark. Properties in the $1M–$5M range are experiencing modest price corrections in most markets, while the $10M+ segment has seen prices appreciate 12–18% year-over-year in prime locations including Beverly Hills, South Beach, and Manhattan's West Village.

"Several structural factors are driving this. First, the concentration of ultra-high-net-worth wealth has accelerated following technology sector gains. Second, international capital from the Middle East and Southeast Asia continues to seek safe harbour in US prime real estate. Third, the inventory of truly exceptional properties remains chronically constrained."

Geographically, Miami remains the undisputed growth story. The city's combination of tax advantages, lifestyle amenities, and growing financial sector presence has attracted an unprecedented wave of UHNW migration from the Northeast and West Coast.

Aspen and other mountain resort markets are similarly buoyant. Remote work permanence has converted seasonal demand into year-round residency considerations, dramatically expanding the buyer pool for $10M+ mountain properties.

"For buyers in this segment, our advice remains consistent: the best properties don't sit on the market. Properties priced appropriately in prime locations are receiving multiple offers within 72 hours."