With 2025 already underway, the Coldwell Banker Global Luxury program trend report has an idea of the trends the luxury real estate market can expect during the coming year. The expert-driven data explains the projected trends concerning spending preference and homebuyer demographics in 2025. 

A balanced market, the demand for indoor-outdoor spaces, successful women at the forefront of market decisions, and a growing need for multi-generational living are at the forefront of the shift in the luxury real estate market.

The Luxury Real Estate Market Continues to Grow

Previous market trends regarding the rising costs of luxury real estate are projected to continue, growing faster than traditional real estate in the United States. When it comes to single-family homes and condos, luxury real estate prices rose by 7.6%—over double the traditional market. 

However, the Coldwell Banker Global Luxury Property specialists have good news for buyers: costs may be higher, but new homeowners can expect lower mortgage rates, more homes to choose from, and better market conditions that will create a more even playing field between both buyers and sellers. 

Gen X Leads the Charge for Multi-Generational Living Spaces

Individuals in the general age range of 44 to 59 are projected to be at the forefront of luxury homeownership this year. Since 2019, Gen X luxury homeowners have risen by 10%—which is a higher upward trend than any other groups like Baby Boomers (who currently hold over half of the market share) and Millennials. 

As generations shift over the years, younger populations benefit from wealth transfer from older generations. Gen X is now inheriting large proportions of money from Baby Boomers in what is being referred to as the “Silver Tsunami.” 

Naturally, a demographic’s wealth growth leads to a more significant impact on luxury markets. This shift is what many real estate projections are accounting for in 2025. Given the economy, issues like student loans, and the job market, more and more adult ‘children’ are living at home. 

Of course, that’s causing a shifted focus on multi-generational living that will allow multiple generations to comfortably reside in one home together, benefitting Gen Xers in the long run when they need their Millennial and Gen Z kids to look after them when they get older. 

Women Are at the Forefront of 2025 Luxury Real Estate

As women continue to break the glass ceiling, women under the age of 35 are responsible for 54% of luxury real estate ownership in that age range, while men between the ages of 35 and 64 account for 59% of their age group. 

Based on those numbers, luxury real estate must account for the growing number of young professional women seeking luxury properties. Many women are getting married older or not at all, accounting for the demographics’ rising luxury homeownership numbers. 

President Jade Mills of Jade Mills Estates said, “We are seeing an extraordinary evolution in home design that reflects the changing dynamic of luxury real estate.” She added, “Women, especially, are powerful decision-makers that are making critical choices about where and how they live.”

Shifting Priorities, Locations, and Demographics All Impact 2025 Trends

On top of young women leading the luxury housing demand for their age demographic and Gen X’s wealth inheritance and focus on multi-generational living spaces, there are plenty of other luxury housing needs that people can expect over the rest of 2025. These include spaces that merge indoor and outdoor spaces, a focus on personalized designs, and luxury homes outside popular metropolitan cities like New York, Paris, and London.

Coldwell Banker Global Luxury Vice President Michael Altneu shared some insights on the 2025 market. “The luxury real estate market has proven its resilience, even amidst broader market fluctuations, and we are confident that 2025 will see continued consumer optimism,” he explained. 

Altneu added, “For high-net-worth individuals, real estate remains a constant necessity, and their desire for exceptional properties with unique designs and premium amenities is stronger than ever. With increased optimism and a shift in priorities, we anticipate a more dynamic year ahead.”