The Landscape of Million-Dollar Homes
Not every million-dollar home is the same.
According to Realtor.com’s latest report, buyers can find a range of properties across the U.S. within a seven-figure budget, from a spacious 4,500-square-foot home in Atlanta to a quaint 1,700-square-foot condo in Honolulu.
The entry point for luxury properties decreased slightly in September, setting at $1.24 million—down 0.5% from August and 2.4% compared to last year. Geography, as always, plays a pivotal role in pricing.
In cities like Atlanta, Denver, and Dallas, the average size for homes priced between $1 million and $2 million exceeds 4,000 square feet. This is roughly twice the size of similar properties in Honolulu and San Jose, where the typical size is around 1,650 to 1,700 square feet.
“Following years of fluctuating luxury housing markets, we’re witnessing a healthy readjustment,” said Daniel Hale, chief economist at Realtor.com, in the report.
“The gentle decline in luxury prices suggests both buyers and sellers are realigning their expectations with the current economic landscape. Still, demand remains robust for homes that boast unique features, quality, or prime locations.”
On a national scale, luxury homes now tend to stay on the market longer. The average time at the 90th percentile is about 79 days, which is just a day longer than the previous month and five days longer than last year. For ultra-luxury listings in the 99th percentile, the average time to sell is 103 days.
The proportion of million-dollar listings stabilized at 13%, indicating that the economic slowdown appears to be more of a normalization rather than a full-blown recession.
Santa Barbara, California, holds the title of the most expensive luxury market, with properties in the top 10% starting at around $8.95 million. Heber, Utah, follows in second place at $6.5 million, driven by a surge in demand for luxury resorts and limited inventory. Key West, Bridgeport, Connecticut, and Los Angeles round out the top five cities.
In contrast, Honolulu’s cost per square foot stands at $827, making it a challenging market for buyers in the $1 million to $2 million range. Silicon Valley isn’t far behind, with the San Jose-Sunnyvale-Santa Clara area nearing $828 per square foot.
Interestingly, Atlanta emerges as the city offering the most space per million dollars, with homes averaging $301 per square foot, making it significantly more spacious than the national median of 2,994 square feet.
While the high-end market is cooling off, it’s not facing a collapse. Currently, properties in the 95th percentile, starting at about $1.95 million, have seen a 1.2% decline over the month, whereas very high-end homes starting at $5.41 million are down only 0.2%.
In summary, this data hints at a “Goldilocks” phase for luxury real estate—not too hot, yet not too cold. For buyers, this means there’s more room for negotiation in places like Atlanta or Denver, while space remains limited in hot markets like Honolulu or San Jose.
