Miami will always appeal to luxury buyers for its ocean-front properties, mild weather, and access to high-end activities. However, prices and purchase times are now rising.
Realtor.com defines a luxury home as one in the top 5% of a given market. In December 2023, Miami’s average luxury home price rose to $5.37 million, a 7.5% annual increase. Realtor.com reported that those high-end properties typically spent 88 days on the market.
“Days on market is one way to look at how quickly a housing market is moving,” explained Jonathan Miller, CEO of appraisal firm Miller Samuel. “If you have days on the market expanding or getting longer, that tells you that there’s probably an imbalance between supply and demand.” Looking at luxury homes across the United States within this criteria shows five markets that are significantly growing and performing better than Miami.
Phoenix, Arizona
Realtor.com’s data shows that luxury listing prices jumped 47.7% in the Phoenix metropolitan area in 2023, the highest of any of the 60 cities researched. Luxury homes spent an average of 76 days on the market in Phoenix and the surrounding cities of Mesa and Chandler.
“I would look at markets that are seeing the steepest growth rate as coming from a place of more affordability,” Miller said. Even with the significant price increase, luxury properties in the Phoenix area cost approximately $2.55 million, about half of the average price in Miami.
Santa Barbara, California
Santa Barbara’s metropolitan area experienced a similar rise in annual price of 45%, with homes spending an average of 73 days on the market. Home to major celebrities like Oprah and Prince Harry and Meghan Markle, the Santa Barbara metro area has already been on the map as a hub of luxury homes for many years. The rise in price was significant, but interest in the area was not based on affordability; with the 45% increase, home prices soared to approximately $20.6 million.
Portland, Maine
East Coast markets like New York and Boston have been among the priciest for years, but affluent East Coast-ers have found a new market for luxury homes that does not break the bank. Portland, Maine experienced a $40.3% jump in luxury home prices in 2023, bringing the average price up to $2.52 million. Despite the soaring prices, these homes are still much more affordable than in other East Coast cities. Homes in the area typically spent 82 days on the market.
Danielle Hale, chief economist at Realtor.com, explained that the phenomenon was likely due to a combination of affordability and an upturn in the East Coast job market. Portland’s performance was, “a reflection that the Northeast has seen some pretty solid economic performance,” she said. “Other parts of the country haven’t seen the same kinds of job growth.”
Nashville, Tennessee
Luxury listing prices in Nashville rose roughly 20% in 2023, making the average price $2.69 million. According to Hale, interest in Nashville is chiefly coming from current residents of major markets like Chicago, New York City, and Los Angeles. She explained that people in these areas have, “been anchored to a higher price point,” meaning it is, “easier for them to stretch pricing when they’re making offers,” which in turn drives up prices. Homes in the Nashville area spent about 76 days on the market.
Tampa, Florida
For those who enjoy the trappings of Miami but want a lower price point, Tampa is the way to go. Prices in the region rose 9.4% last year with a median price of $1.75 million, significantly lower than Miami’s. Luxury sales in Tampa rose the most of any American city in 2023 according to Redfin. Homes spent approximately 78 days on the market, but the city’s luxury home market is clearly on the rise.
