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The Evolution of Luxury Homes: What’s coming in 2025?

The luxury real estate market is expected to be more stable by 2025, with Generation X emerging as the primary luxury buyers and women playing an increasingly significant role in purchasing decisions.

Por: Rubén Carrillo
The luxury real estate market is expected to be more stable in 2025, with growing interest in homes that blend indoor and outdoor spaces / Photo 1428 Residences
The luxury real estate market is expected to be more stable in 2025, with growing interest in homes that blend indoor and outdoor spaces / Photo 1428 Residences

The luxury real estate market is expected to be more stable in 2025, with growing interest in homes that blend indoor and outdoor spaces.

 

Wealthy women are becoming more influential in buying decisions, and more families are looking for homes that can accommodate multiple generations.

 

These are some of the trends coming to the luxury real estate market in 2025.

 

The report examines spending habits, popular trends, and who is buying luxury homes. 

 

The findings are based on surveys from Coldwell Banker’s luxury property experts and market data collected from November 2022 to October 2024. Wealth-X and Barton Consulting also contributed to the research.

 

Here are the key trends shaping luxury real estate in 2025:

According to the report, single-family luxury homes increased in price by 7.6%, while regular homes rose by 3% / Photo Compass Luxury
According to the report, single-family luxury homes increased in price by 7.6%, while regular homes rose by 3% / Photo Compass Luxury

A Stronger and More Stable Luxury Market

Luxury home prices are expected to keep rising faster than regular homes in 2025.

 

According to the report, single-family luxury homes increased in price by 7.6%, while regular homes rose by 3%. 

 

Luxury condos grew in value by 6.5%, compared to 3% for standard condos.

 

Joshua Baris, a real estate agent with Coldwell Banker’s Global Luxury Division, said that one of the reasons for the price difference between one area and another is the proximity of some locations to major cities.

Despite higher prices, experts believe lower mortgage rates, more available homes, and better market conditions will create a fairer balance for both buyers and sellers / Photo Nabdalhadath
Despite higher prices, experts believe lower mortgage rates, more available homes, and better market conditions will create a fairer balance for both buyers and sellers / Photo Nabdalhadath

One case is North Jersey, which is close to New York. This location attracts wealthy buyers associated with the city’s major companies.

 

“The luxury real estate market benefits a lot from being near New York City,” Baris said. “Being close to big businesses and financial centers makes these homes even more valuable.” according to the report.

 

Despite higher prices, experts believe lower mortgage rates, more available homes, and better market conditions will create a fairer balance for both buyers and sellers.

Gen X buyers are also driving a trend for larger homes that can fit multiple generations / Photo HAR.com
Gen X buyers are also driving a trend for larger homes that can fit multiple generations / Photo HAR.com

Gen X Leading the Market and Multi-Generational Living on the Rise

Generation X, people between the ages of 44 and 59, will be the biggest buyers of luxury homes in 2025.

 

Over the past five years, Gen X ownership of luxury properties has grown by 10%, more than any other age group. While baby boomers still own over half of the market, Gen X is quickly catching up.

 

“As Gen X starts inheriting wealth from their baby boomer parents, they are using that money to invest in luxury real estate,” the report explains. “This makes them a major force in the market moving forward.”

 

Gen X buyers are also driving a trend for larger homes that can fit multiple generations. Many want homes that allow them to live with their aging parents and adult children while keeping maintenance low.

While men still own most luxury homes in older age groups, women under 35 now make up 54% of luxury homeowners / Photo The Delmore
While men still own most luxury homes in older age groups, women under 35 now make up 54% of luxury homeowners / Photo The Delmore

Wealthy Women, or “She-Elites,” Gaining Influence in Luxury Real Estate

Wealthy women referred to as “She-Elites” in the report, are playing a bigger role in the luxury real estate market in 2025.

 

While men still own most luxury homes in older age groups, women under 35 now make up 54% of luxury homeowners. 

 

The report also points to an increase in single women purchasing luxury homes, as younger generations are choosing to stay single longer than previous ones.

 

“We’re seeing big changes in how luxury homes are designed, reflecting the growing power of women in the market,” said Jade Mills, president of Jade Mills Estates and an international ambassador for Coldwell Banker Global Luxury.

Wealthy buyers continue to seek unique homes with top-tier amenities / Photo Agent Advice
Wealthy buyers continue to seek unique homes with top-tier amenities / Photo Agent Advice

Other Key Luxury Housing Trends for 2025

Coldwell Banker’s report highlights other major trends in luxury real estate, including:

 

  • Homes that seamlessly blend indoor and outdoor living spaces.
  • More customized home designs to fit individual needs.
  • A shift toward buying primary or vacation homes in new locations beyond traditional luxury cities like New York, London, and Paris.

“The luxury real estate market has remained strong despite economic changes, and we expect continued confidence from buyers in 2025,” said Michael Altneu, vice president of Coldwell Banker Global Luxury.

 

“Wealthy buyers continue to seek unique homes with top-tier amenities, and their interest in high-end properties remains strong. With a shift in priorities, 2025 is expected to be an exciting year for the luxury market,” explained

The luxury real estate market has remained strong despite economic changes in 2025 / Photo Marbella Interior Design
The luxury real estate market has remained strong despite economic changes in 2025 / Photo Marbella Interior Design

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