While much of the U.S. housing market continues to feel the effects of higher interest rates and affordability pressures, the ultra-luxury segment is moving in the opposite direction. According to recent reporting by The Wall Street Journal, homes priced above $10 million are selling at a pace that sharply contrasts with the slowdown seen in lower price brackets.
A Market Split in Two
The housing market is increasingly defined by a clear divide. Entry-level and mid-priced homes have experienced reduced demand as buyers contend with borrowing costs and economic uncertainty. Meanwhile, wealthy buyers—many of whom are purchasing with cash—remain active and decisive, fuelling a surge in high-end transactions.
Sales of homes priced above $10 million rose significantly year over year, reaching more than 1,600 transactions nationwide, representing a notable increase compared to the previous year. In total, these deals accounted for tens of billions of dollars in sales volume, underscoring the strength of demand at the very top of the market.
Why the Ultra-Luxury Buyer Is Undeterred
The resilience of this segment is largely driven by buyer profile. Ultra-high-net-worth individuals are far less sensitive to mortgage rates and short-term market volatility. Many buyers are drawing on accumulated wealth from equities, business exits, and long-term investments rather than relying on financing.
For this group, real estate serves not only as a primary or secondary residence, but also as a store of value, lifestyle asset, and portfolio diversifier—particularly in times of broader economic uncertainty.
Where the Biggest Deals Are Happening
Traditional luxury strongholds continue to dominate. Los Angeles led the country in $10-million-plus home sales, recording a sharp year-over-year increase in transactions. High-end neighbourhoods with limited inventory and global appeal remain especially competitive.
Technology-driven wealth has also played a role, with luxury sales rebounding in markets connected to the tech sector as stock performance and compensation improved. At the same time, affluent buyers are showing interest in lifestyle-oriented cities, expanding the geographic footprint of ultra-luxury demand.
Limited Inventory, Strong Pricing
Despite the increase in sales activity, inventory at the ultra-luxury level remains relatively constrained. This scarcity has helped support pricing, particularly for properties offering distinctive architecture, privacy, views, or prime locations. Sellers with unique, well-positioned homes are finding that qualified buyers are still willing to transact decisively when the right property comes to market.
What This Signals for the Market Ahead
The strength of the ultra-luxury sector highlights a broader trend: the housing market is no longer moving as a single unit. Instead, performance is increasingly segmented by price point and buyer profile.
For luxury homeowners and investors, the message is clear. While broader market conditions may be uneven, top-tier real estate continues to perform when it aligns with quality, scarcity, and global demand. For real estate professionals operating in this space, deep market knowledge, precise pricing, and targeted exposure are more critical than ever.
