Find out in which regions high-end buyers are dominating
Zonda has released its annual top markets forecast, focusing on high-end buyers for 2025.
While the broader housing market continues to face affordability constraints from high home prices and mortgage rates, the luxury segment has demonstrated resilience.
Charleston, South Carolina, topped the list, marked by its diverse neighborhoods, miles of coastline, and mild climate. The coastal city has significantly outperformed in both overall new home sales and high-end segment transactions, despite limited land availability and strict development restrictions.
Nashville, Tennessee, took the second position, benefiting from a surge in corporate relocations that was driven by a favorable tax environment and state business incentives. Indianapolis, Indiana came in at third place, emerging as a surprising contender that has transformed into a net migration winner in the post-pandemic landscape.
"Why focus on the high-end? Simply put, high-end buyers are among the strongest today," said Ali Wolf, chief economist at Zonda. "Our national Zonda Market Ranking shows the high-end market overperformed for the whole of 2024 and is poised to shape the 2025 housing market."
The strength in luxury housing comes from several key factors: relative insulation of buyers from interest rate impacts, substantial wealth accumulation from strong stock market performance and home price appreciation, and consistent wage growth in a robust labor market.
Seattle and Raleigh rounded out the top five, with Seattle emerging as a hub for artificial intelligence and tech innovation, while Raleigh benefits from its thriving Research Triangle employment base.
The remaining markets - Columbia, Charlotte, Las Vegas, Boston, and Los Angeles/Orange County - each demonstrate unique advantages, ranging from tax benefits to cultural amenities and economic diversity.
Could the luxury segment be a bright spot in a challenging market? Let us know what you think.
