According to Sotheby’s, the luxury real estate market will continue a trend of historical resilience despite shifting economic factors. Home sales in the “upper brackets” of the market reportedly perform better than average-priced homes. Sotheby’s references an April 2024 report by J.P. Morgan Private Bank, which found that luxury home prices grew 65% since fourth-quarter 2019. In the same time frame, non-luxury prices increased 40%.
This growth can be a good sign for migrating investors. Sotheby’s cites a wealth migration report from Henley & Partners that forecasts 135,000 high net worth individuals (HNWIs) to migrate to new countries in 2025, up from 128,000 in 2024. HNWIs are defined as individuals with at least $1 million in investable assets, according the report.
“Shifts in HNWI demographics are an important barometer of a country’s economic health and political stability, with major outflows often indicating serious underlying issues,” said Bradley Nelson, chief marketing officer for Sotheby’s.
The U.S. had the second-highest influx of wealthy international homebuyers last year, although it also had its lowest level of international purchases since 2009. The report found that international buyers acquired 54,300 homes totaling $42 billion during the year ending in 2024. For comparison, international buyers acquired 284,500 homes for $153 billion in 2017.
Still, Sotheby’s expects international investors to return to the market in 2025 as U.S. inventory levels stabilize.
“Real estate continues to be a key vehicle for foreign buyers seeking not only financial growth but also security and global mobility,” said Tammy Fahmi, senior vice president of global servicing and strategy at Sotheby’s. “For investors, this moment presents the potential for significant returns, especially in markets like luxury real estate, where all-cash transactions remain common.”
New demographics may also change the luxury market in coming years. Younger generations — including millennials and Generation Z — are entering the market with more wealth and higher standards than older generations. A report by Cerulli Associates estimates that $84 trillion will flow from older generations to their younger family members by 2045.
“Many young buyers are using an inheritance to purchase their first home or to trade up to their second,” Sotheby’s said. “Wealthy parents are also buying homes for their adult children, in some cases with money placed in a trust.”
Sotheby’s identified millennials as the second-fastest growing group of homebuyers in the country, accounting for 38% of the market.
Women will also overtake a portion of the market. Sotheby’s said that women will command $34 trillion — or 38% of all investable assets — by 2030. And the Bank of America Institute said that intergenerational wealth transfers “will contribute to women controlling more wealth than ever before.” Younger women lead the charge when it comes to homeownership, with most pursuing wealth building opportunities and autonomy.
“They are financially savvy and know what they want,” said Marsha Burke, Sotheby’s global real estate adviser. “Financial autonomy is the overarching theme that has propelled the number of women purchasing their own homes.”
