Luxury Home Market Update: Only Five Major Metros Under $1 Million
In a revealing report released on July 8, 2026, Redfin, a prominent real estate brokerage under the umbrella of Rocket Companies Inc (NYSE: RKT), has highlighted a significant shift in the luxury housing market. The report indicates that only five of the 49 most populous metropolitan areas in the United States now offer a typical luxury home priced below $1 million, a decline from eight metros in 2025.
1. Detroit Leads as the Most Affordable Luxury Market
The report identifies Detroit, Michigan, as the most affordable major metro for luxury home buyers, where the median sale price for a luxury home was recorded at $719,252 in May—47.7% lower than the national average for luxury homes. Anne Loehr, a Principal Agent at Redfin, commented on the affordability of high-end homes in Detroit, noting, “The Detroit area has a lot of beautiful, high-end homes that are affordable here but would cost millions of dollars if they were in a major coastal metro area.”
The Five Major Metros with Luxury Homes Under $1 Million
According to the report, the following five metro areas remain the only major markets where buyers can find luxury homes priced below $1 million:
| Ranking | Metro area | Luxury median home sale price (2026) | Luxury median home sale price (YoY) |
|---|---|---|---|
| 1. | Detroit, MI | $719,252 | -1.0% |
| 2. | Cleveland, OH | $833,228 | 11% |
| 3. | Pittsburgh, PA | $904,202 | 6.1% |
| 4. | Cincinnati, OH | $952,523 | 0.3% |
| 5. | San Antonio, TX | $968,344 | 5.1% |
Yingqi Xu, a Senior Economist at Redfin, explained that luxury home prices have continued to rise as affluent buyers remain less affected by mortgage rates and more focused on finding their ideal property. “The fact that only five major metros still offer a typical luxury home for under $1 million shows just how much the high-end market has appreciated in recent years,” Xu stated.
2. Rising Prices in Other Major Markets
The report also indicates that cities like Indianapolis, St. Louis, and Columbus have crossed the $1 million mark for median luxury home prices. Indianapolis saw an increase of 9% year-over-year, with a median luxury home price of $1,009,314. St. Louis experienced a 10.9% rise, reaching $1,028,596, while Columbus saw a modest increase of 2.9%, bringing its median luxury home price to $1,017,342.
Nationwide Trends
Overall, the report outlines a national picture where the median luxury home sale price now stands at $1,374,470, reflecting a 4.7% increase from the previous year. This growing divide between luxury and non-luxury homes highlights the escalating challenges for prospective buyers entering the luxury market.
3. The Most Expensive Luxury Housing Markets
The report also sheds light on the most expensive luxury housing markets across the nation, with California and Florida dominating the top spots. San Francisco leads the pack with a staggering median luxury home price of $6,648,922, followed by Anaheim at $5,276,971 and Miami at $4,855,331. The five most expensive metros for luxury homes are as follows:
| Ranking | Metro area | Luxury median home sale price (2026) | Luxury median home sale price (YoY) |
|---|---|---|---|
| 1. | San Francisco, CA | $6,648,922 | 6% |
| 2. | Anaheim, CA | $5,276,971 | 2.2% |
| 3. | Miami, FL | $4,855,331 | 14.2% |
| 4. | Los Angeles, CA | $4,512,482 | 4.9% |
| 5. | West Palm Beach, FL | $4,510,196 | 1.3% |
Notably, the South Florida metro, particularly West Palm Beach and Miami, exhibits the largest luxury home price premiums among the 49 most populous U.S. housing markets. In West Palm Beach, luxury homes sold for a median price nearly nine times higher than typical non-luxury homes.
4. Conclusion
The findings from Redfin's report underscore a significant transformation in the luxury home market, revealing both challenges and opportunities for buyers. As high-end markets continue to evolve, cities like Detroit, Cleveland, and Pittsburgh may present unique opportunities for buyers seeking affordable luxury homes. Meanwhile, investors and high-net-worth individuals are likely to face increasing competition in the more expensive coastal markets, highlighting the ongoing dynamics of the U.S. housing landscape.
