Luxury buyer interest doubles, demand shifts to larger properties

Coldwell Banker Real Estate released its Global Luxury 2026 Mid-Year Report, finding that prospective buyer interest in U.S. luxury real estate doubled during the first five months of the year.

Data also identifies a growing trend of affluent buyers purchasing larger properties and neighboring homes to maximize privacy, preserve views and accommodate multigenerational living.

The report draws on luxury home sales data, research from global wealth and real estate firm and a survey of Coldwell Banker Global Luxury Property Specialists. It found that affluent buyers are expanding their real estate portfolios, making more all-cash purchases and seeking distinctive properties with long-term investment value.

The report also noted that the U.S. is attracting increased interest from international luxury buyers, particularly in markets such as California and New York.

“Today’s luxury home shopper is discerning, focused on both their emotional wants and their long-term wealth building,” said Mary Lee Blaylock, president of Coldwell Banker Affiliates. “Both domestic and international buyers are eyeing U.S. properties as they focus on the geographic diversification of their real estate holdings. These buyers are focused on purchasing unique properties that help them build a legacy through their expansive footprints and locations that carry long-term value.”

Demand grows for larger properties

The report found that affluent buyers increasingly prioritize larger properties and land, with many purchasing adjacent parcels to increase privacy, preserve views or create multigenerational living opportunities.

Searches for unique properties — including estates, châteaux, castles, historic homes, branded residences and private islands — increased 146% year over year, while searches for land rose 97%.

Nearly 40% of surveyed Luxury Property Specialists said buyers are willing to compromise on a property’s condition in exchange for a desirable location. Luxury single-family home sales increased 2.8% year over year, while sales of attached properties declined 3.8%.

“A luxury home can be built almost anywhere, but land is finite,” Blaylock said. “Features like waterfront acreage, historic estates, or expansive ranches are in high demand, but they require space to maintain and build. Affluent buyers are purchasing properties with that in mind.”

International demand, wealth strategy

According to the report, searches for U.S. luxury real estate by global buyers increased 100% during the first five months of 2026.

California generated the highest share of international buyer inquiries, followed by New York and Florida, while New York posted the strongest growth in international interest.

Researchers found that affluent buyers continue to increase their investments in luxury real estate.

The top 10% of the single-family housing market across 120 U.S. markets generated a $3.7 billion year-over-year increase in sales volume, with nearly 60% of that growth coming from the top 1% to 5% of the luxury market.

More than 82% of luxury property specialists say their clients are maintaining or increasing their real estate holdings, while 78% expressed confidence in the luxury housing market. Nearly half said clients are more likely to view luxury real estate as a safe-haven investment than they were a year ago.

Liquidity divide, inventory outlook

The report found that ultra-high-net-worth buyers continue to drive luxury sales while buyers just below that segment remain more cautious.

Nearly two-thirds of luxury property specialists reported an increase in all-cash purchases, up from 51% a year earlier. More than one-quarter identified a widening wealth divide as an active trend in their markets.

In May 2026, the top 5% of luxury transactions accounted for 65.6% of total single-family luxury sales volume. Median sale prices increased 8% for the top 5% of homes and 6.5% for the top 1%, compared with a 4.7% increase for the top 10%.

While luxury inventory declined year-over-year, the report found that many affluent homeowners are waiting for greater economic certainty before listing their properties.

Nearly 60% of luxury property specialists expect inventory to increase during the second half of 2026 as seller confidence improves.

The report also cited National Association of Realtors data indicating the market may be approaching a turning point as the number of homeowners with mortgage rates above 6% moves closer to the number holding mortgages near 3%.

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication.