What Defines Luxury in Today’s Market?

For years, the million-dollar home carried a certain mystique. It was the shorthand for luxury—an address that signaled you had “arrived.” But in today’s market, that milestone has shifted.

Across the country, $1 million is no longer the pinnacle of housing; it’s the starting line. Migration trends, demand booms, and rising price floors have redefined what qualifies as luxury, and the benchmarks continue to evolve.

The New Luxury Benchmarks

Using national data, Realtor.com defines luxury by price percentiles:

• Entry-Level Luxury (Top 10%): Homes starting just under $1.3 million.
• High-End Luxury (Top 5%): Homes beginning at $2.0 million.
• Ultra-Luxury (Top 1%): Unique properties starting just under $5.5 million, where exclusivity, location, and lifestyle often outweigh traditional valuation metrics.

Another way to think about it:

• Entry-level luxury homes cost about 3x the median home price.
• High-end luxury is 4.6x the median.
• Ultra-luxury climbs to 12.6x the median.

How This Plays Out Locally

Luxury is relative. A $1.3 million home in Santa Clara, CA may be a modest entry point, while in Toledo, OH it represents the very top of the market. That’s why the 90th percentile price—what the top 10% of homes are listed for—serves as a fair gauge for defining luxury in any market.

Locally, markets like Palm Beach, Miami, and Naples continue to command some of the nation’s strongest luxury thresholds. For example, in 2025:

• Palm Beach/West Palm/Fort Lauderdale: luxury starts around $2.1 million.
• Naples/Marco Island: luxury begins at $3.4 million.

Why It Matters

Understanding these thresholds helps buyers and sellers alike:

• For Sellers: It positions your home properly in the market—ensuring it stands out in the right segment.
• For Buyers: It provides clarity on what “luxury” really means in today’s market, so expectations match reality.

Looking Ahead

Luxury housing thresholds are not fixed. They shift with lifestyle trends, migration patterns, and economic forces. Remote work, generational wealth transfers, and global demand are all shaping tomorrow’s definition of luxury.

At Epicure, our role is to keep you informed—not only about current market values, but about the broader trends that shape where opportunity lies.