15 Cities With the Most Luxury Home Sales

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Luxury Home
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Editor's Note: This story originally appeared on Inspection Support Network.

One of the dominant economic stories since the COVID-19 pandemic began has been the fiercely competitive housing market. The median sales price of a home in the U.S. topped $400,000 for the first time in 2021 amid aggressive buyer offers and bidding wars in markets all across the country.

The current challenges of the housing market have come from a potent combination of supply- and demand-side factors. The U.S. has underbuilt housing supply for years, with mortgage lender Freddie Mac estimating a shortage of 3.8 million housing units as of 2020.

Before the pandemic began, the median sales price of a U.S. home was $329,000. By the third quarter of 2021, the median sales price soared to a peak of $411,200. With more than half of homes now selling for more than $400,000, fewer options are available for lower-income or first-time buyers, and current homeowners looking to upgrade to larger or nicer homes are having to pay a higher price to do so.

But even before the recent spike, higher-end home sales in the U.S. had been increasing in share over time.

To determine the metros with the highest percentage of luxury home sales, researchers at Inspection Support Network analyzed the latest data from the Home Mortgage Disclosure Act. The researchers ranked metro areas by the percentage of mortgaged home sales greater than $1 million. In the event of a tie, the metro with the larger median property value for homes greater than $1 million was ranked higher. Read more about our methodology at the end.

Here are the cities with the highest percentage of luxury home sales.

15. Phoenix-Mesa-Chandler, AZ

Phoenix, Arizona
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  • Percentage of luxury home sales ($1 million or more): 3.11%
  • Median property value for $1M+ homes: $1,345,000
  • Median income for $1M+ buyers: $350,000
  • Median down payment for $1M+ homes: $410,000

14. Portland-Vancouver-Hillsboro, OR-WA

Aerial view of Portland with Mount Hood in the background.
josemaria-toscano / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 3.38%
  • Median property value for $1M+ homes: $1,255,000
  • Median income for $1M+ buyers: $315,000
  • Median down payment for $1M+ homes: $390,000

13. Nashville-Davidson–Murfreesboro–Franklin, TN

Nashville, Tennessee
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  • Percentage of luxury home sales ($1 million or more): 3.92%
  • Median property value for $1M+ homes: $1,335,000
  • Median income for $1M+ buyers: $336,000
  • Median down payment for $1M+ homes: $420,000

12. Austin-Round Rock-Georgetown, TX

Austin, Texas
Roschetzky Photography / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 4.30%
  • Median property value for $1M+ homes: $1,375,000
  • Median income for $1M+ buyers: $377,000
  • Median down payment for $1M+ homes: $410,000

11. Sacramento-Roseville-Folsom, CA

Sacramento, California
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  • Percentage of luxury home sales ($1 million or more): 4.31%
  • Median property value for $1M+ homes: $1,255,000
  • Median income for $1M+ buyers: $346,000
  • Median down payment for $1M+ homes: $400,000

10. Denver-Aurora-Lakewood, CO

Denver Colorado
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  • Percentage of luxury home sales ($1 million or more): 4.98%
  • Median property value for $1M+ homes: $1,285,000
  • Median income for $1M+ buyers: $300,000
  • Median down payment for $1M+ homes: $420,000

9. Miami-Fort Lauderdale-Pompano Beach, FL

Miami, Florida
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  • Percentage of luxury home sales ($1 million or more): 6.13%
  • Median property value for $1M+ homes: $1,455,000
  • Median income for $1M+ buyers: $451,000
  • Median down payment for $1M+ homes: $490,000

8. Washington-Arlington-Alexandria, DC-VA-MD-WV

Washington, D.C. traffic with Capitol Building in background
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  • Percentage of luxury home sales ($1 million or more): 9.01%
  • Median property value for $1M+ homes: $1,305,000
  • Median income for $1M+ buyers: $311,000
  • Median down payment for $1M+ homes: $360,000

7. Boston-Cambridge-Newton, MA-NH

Boston skyline summer day.
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  • Percentage of luxury home sales ($1 million or more): 12.11%
  • Median property value for $1M+ homes: $1,355,000
  • Median income for $1M+ buyers: $320,000
  • Median down payment for $1M+ homes: $400,000

6. New York-Newark-Jersey City, NY-NJ-PA

New York City
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  • Percentage of luxury home sales ($1 million or more): 12.28%
  • Median property value for $1M+ homes: $1,435,000
  • Median income for $1M+ buyers: $378,000
  • Median down payment for $1M+ homes: $420,000

5. Seattle-Tacoma-Bellevue, WA

Aerial view of roads leading into Seattle at sunset.
Punit Sharma Fotography / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 14.70%
  • Median property value for $1M+ homes: $1,305,000
  • Median income for $1M+ buyers: $272,000
  • Median down payment for $1M+ homes: $390,000

4. San Diego-Chula Vista-Carlsbad, CA

Sean Pavone / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 19.40%
  • Median property value for $1M+ homes: $1,375,000
  • Median income for $1M+ buyers: $290,500
  • Median down payment for $1M+ homes: $430,000

3. Los Angeles-Long Beach-Anaheim, CA

The streets of Los Angeles, where median rent is relatively low
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  • Percentage of luxury home sales ($1 million or more): 27.51%
  • Median property value for $1M+ homes: $1,405,000
  • Median income for $1M+ buyers: $300,000
  • Median down payment for $1M+ homes: $430,000

2. San Francisco-Oakland-Berkeley, CA

Homes in San Francisco, California
Sergey Novikov / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 49.36%
  • Median property value for $1M+ homes: $1,425,000
  • Median income for $1M+ buyers: $290,000
  • Median down payment for $1M+ homes: $400,000

1. San Jose-Sunnyvale-Santa Clara, CA

The skyline of San Jose, which has a lower median rent than median mortgage payment
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  • Percentage of luxury home sales ($1 million or more): 61.12%
  • Median property value for $1M+ homes: $1,455,000
  • Median income for $1M+ buyers: $289,000
  • Median down payment for $1M+ homes: $400,000

Methodology

Man analyzing data on a laptop
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To determine the metros with the highest percentage of luxury home sales, researchers at Inspection Support Network analyzed the latest data from the Federal Financial Institutions Examination Council’s Home Mortgage Disclosure Act.

Only conventional, home purchase loans that originated in 2020 were considered in the analysis. The researchers ranked metro areas by the percentage of mortgaged home sales greater than $1 million.

In the event of a tie, the metro with the larger median property value for homes valued at greater than $1 million was ranked higher. To improve relevance, only metropolitan areas with at least 100,000 residents were included.