While higher mortgage rates and lofty housing prices posed challenges for first-time and mid-level homebuyers last year, the national Zonda Market Ranking revealed that luxury home buyers were active in 2024, and that trend is expected to continue in 2025. Zonda’s latest Market Ranking highlights the top metros for high-end buyers, focusing on areas with strong job growth, thriving economies, and appealing climates. This year’s analysis shifts from affordability-focused markets to those catering to wealthier buyers, who remain among the strongest participants in the housing market.
According to the report, the high-end housing market overperformed for the whole of 2024.
Typically, with cash in hand, luxury house hunters are less sensitive to interest rate fluctuations and are undeterred by high housing prices since they often leverage cash, investments, or proceeds from prior home sales. Similarly, wealth accumulation from stock market gains and home price appreciation has boosted their purchasing power. The S&P 500 closed 2024 with back-to-back annual gains exceeding 20%, contributing to significant equity growth for stockholders and homeowners. Meanwhile, a strong labor market with steady wage growth continues to bolster consumer confidence, particularly among high-income earners. Optimism in this segment is further supported by expectations of pro-business policies under the Trump administration, which could enhance consumer confidence in 2025.
Further, housing values have grown significantly since the pandemic, creating record levels of home equity. This, along with strong income growth and good job prospects, supports consumer confidence in this sector.
All in all, these factors combine to make deep pockets for luxury home purchases, propping up the segment of the market.
The metros that ranked as the top luxury home markets didn’t top the list just because of stylin’ homes that appeal to buyers with big budgets (although there are plenty of those), but rather because these metros have factors that support prosperity and lifestyle, including high-income job growth, healthy economies, favorable weather, leisure opportunities, and in some cases, charm and character.
In ranking the top markets for luxury buyers in 2025, Zonda weighted the following criteria:
Growth (including current and high-income job growth).
State income tax.
Sales rates and the Zonda Market Ranking (ZMR) for high-end price tiers.
Homeownership rate of GenX and Baby Boomers by market.
Home price appreciation since 2019.
Change in resale supply from 2019.
Homeowners insurance.
The study also considered changes in resale supply and rising homeowners insurance costs. The Carolinas emerged as dominant, with Charlotte, Raleigh, Columbia, and Charleston making the top 10 list. The region benefits from the "half-back" migration trend, where retirees and former Florida transplants move to states with lower insurance costs and more manageable property taxes. As supply increases and economic conditions evolve, high-end buyers will continue to shape the luxury housing market in the year ahead.
With those parameters for context, here are the nine of the top luxury home markets to watch in 2025.
Charlotte, North Carolina
Location, location, location. With access to the Blue Mountains and the Carolina coastline offering tons of scenery and leisure opportunities, and status as the second-biggest banking center in the country, the vibe and the opportunity in Charlotte is drawing luxury buyers in droves.
Pros:
Affordable compared to major coastal cities.
Four seasons
Charlotte Douglas International Airport offers good connectivity for travelers.
Cons:
Traffic congestion, due to rapid growth and urban sprawl.
Muggy summers.
Limited public transportation options.
Raleigh, North Carolina
Raleigh is a natural draw for youth with a high concentration of universities. A robust job market, with built-in opportunity, compels residents to linger and become homeowners, adding to area wealth after graduation.
Pros:
Appealing location for outdoor enthusiasts, near ocean and mountains.
Temperate weather.
Strong economy.
Cons:
Rapid growth has challenged infrastructure, leading to traffic congestion, lack of public transit and crowded schools.
Its popularity has pushed prices up quickly.
Charleston, South Carolina
High-end buyers are gravitating to Charleston because of its lifestyle-enriching vibe, with charm, a vibrant culinary scene and sublime architecture. It’s also a top spot for multi-generational families, and took second spot in Zonda's Baby Chaser Index, which studies trendlines of grandparents moving to be closer to grandchildren.
Pros:
Picturesque setting.
Temperate weather.
Diverse neighborhoods.
Cons:
Limited land availability in coastal areas, strict development restrictions.
Vulnerable to hurricanes and tropical storms.
Less diversified economy relative to larger cities.
Columbia, South Carolina
With a lower relative cost of living, Columbia draws from across homebuyer segments, with lush, luxe pockets of high-end homes that offer all the bells and whistles: communities with lakefront homes and golf clubs. With an affordable price point, Columbia offers the opportunity to live in a luxury home for less money than in other areas.
Pros:
Good location, providing access to mountains and coastal areas.
Lots of nearby natural areas and parks for outdoor enthusiasts.
Mild winters.
Cons:
Muggy summers.
Ranked 70th largest metro in the country, so relatively small.
Moderate hurricane and tropical storm risk.
Nashville, Tennessee
Music city is known for its incredible live music and entertainment scene and is also a hot spot for luxury home buyers. It’s been the center for numerous corporate relocations, drawn by incentives and favorable taxation. This, along with being a healthcare hub and home to 900 healthcare companies, means that the labor market is vibrant and brims with opportunity.
Pros:
Country music capital, with tons of culture and entertainment opportunities.
Lots of notable natural spots for outdoor enthusiasts, such as the Warner Parks, Radnor Lake, and the Great Smoky Mountains.
Cons:
Limited land and challenging topography pose challenges for new home construction.
Muggy summers and cold, wet winters.
Affordability waning as the metro booms.
Indianapolis, Indiana
Indianapolis is one of those Midwest cities that benefited greatly from the evolution towards remote work, generated by the pandemic. Many Indianapolis and Midwest-area residents moved elsewhere to larger cities in search of employment, and returned home, once remote work became common, all while keeping their big-city salaries. This underscores one of the top features in luxury homes: comfortable, private, stylish and flexible remote workspace.
Pros:
Robust, diverse economy in several growth industries.
Reasonable land availability, low development costs and limited regulation streamline development of new housing.
Cons:
Cold weather.
Lowest rate of price appreciation from 2019, compared to other metros in Zonda’s rankings.
Seattle, Washington
Seattle has historically been a point of light on the horizon for many popular culture, consumer and tech trends. This continues to hold true today, as it is becoming a center for research and development in the rapidly developing field of Artificial Intelligence. Tech giants Microsoft and Amazon also reside here, so lots of high-tech, high salary jobs in Seattle.
Pros:
Diverse selection of major employers, higher proportion of white-collar workers.
Highest GDP per capita levels globally.
Ideal location for outdoor enthusiasts.
Cons:
Aging population
Slow population growth
Growing unhoused population
Las Vegas, Nevada
Las Vegas has been a steady draw for migration for years, even during the pandemic, leading to consistently tight housing supply, which should support continued asset growth. No state income tax is a lure for high-income earners, seeking a tax haven to call home.
Pros:
Entertainment capital: nightlife, restaurants, professional sports teams.
Friendly tax haven.
Mild winters.
Cons:
Oppressive summer heat.
Low housing inventory.
High crime rates in some areas.
Boston, Mass
Boston is home to some of the most iconic university campuses, including MIT and Harvard, and some of the nation’s greatest minds, so consistently draws top talent worldwide, buoying a high-end workforce. Known for innovation and entrepreneurship, along with a lot of character, culture and sports teams, this historic metro is poised for future growth in the luxury home market.
Pros:
Rich in history and culture and notable architecture.
Great for sports fans.
Reliable, extensive public transport.
Cons:
Historic homes come with lots of zoning and regulatory requirements, to preserve heritage.
Hard-core winters, with cold and snow.
Concentrated populations in areas.
Luxury Home Design Trends
We’ve nailed where luxury house hunters should be focusing their house hunt in 2025, but what are the most sought-after luxury home features?
Influences include remote and hybrid work, a focus on health, wellness and sustainability with amenities to match, and the idea that resort-style living isn’t just meant for vacations, but to elevate daily living.
Here are some of what is trending in luxury homes:
Spa-Like Amenities
While most homeowners seek spa-like sanctuary features in their primary bedroom, luxury homes kick this up a notch in 2025, letting homeowners actually experience a spa visit without leaving home. Saunas, dual hot-cold plunge pools, barrel baths and saltwater pools are all popular.
Indoor-Outdoor Connection
Although luxury homes often boast sizable square footage, that sense of space is amplified when an indoor-outdoor connection is created off main living areas, with sliding glass doors or retractable walls. This also extends the area for entertaining guests.
Media Rooms
State-of-the-art media rooms, where you can screen your favorite film, or watch the big game are trending. Don’t forget appropriate lighting, luxe seating and sound systems.
Golf Simulators
Many luxury homes are situated in proximity to golf courses, but you can continue to work on your game, no matter the weather, with a basement golf simulator, currently a popular amenity.
Wine Cellars
Wine cellars have evolved from storage for your favorite vintage to a stylish, comfortable room, with climate control and tasting areas, great for entertaining guests.
Dual Primary Bedrooms
To facilitate aging in place and multi-generational homes, many luxury homes are being designed with two primary suites, as these homes generally have the square footage to accommodate them.
Outdoor Kitchens and Living Areas
With full cooking stations, stunning shade structures, dining and living rooms, with large TVs and impressive fire features, outdoor living is getting more elegant in the luxury home market.
Private, Stylish Home Offices
With remote work being common among luxury homeowners, a private home office (or two) that offers privacy to foster productivity is a must. Also important: thoughtful color and decor choices that stoke inspiration.
Smart Tech
From security systems, to heating and cooling, lighting, appliances and automatic window treatments, convenient, efficient smart tech is essential for luxury homeowners.
