The luxury market is poised for steady growth this year, with multiple factors driving the market toward a fruitful and lucrative 2026.
Inman Connect
Invest in yourself, grow your business—real estate’s biggest moment is in San Diego!
While the market overall sputtered in 2025, the luxury sector continued to perform well and is poised to do so again in 2026, according to Sotheby’s International Realty’s 2026 Luxury Outlook released on Wednesday.
A major shift in generational wealth, a surge in foreign buyer activity in the U.S. and the rising threshold for luxury home prices are all driving the luxury market towards a fruitful new year, the report states.
Bradley Nelson | Sotheby’s International Realty
“The continued aim of the Luxury Outlook is to help clients and the wider market navigate a rapidly shifting landscape through data-based and expert insights informed by our global network of real estate advisors,” Bradley Nelson, Sotheby’s International Realty’s chief marketing officer, said in a press statement. “The latest edition continues to offer the strategic intelligence and global perspectives that empower clients to make confident, well-informed decisions.
“As we look ahead to 2026, inventory levels have largely returned to pre-pandemic norms,” he continued. “This renewed balance in the market signals healthier conditions and provides buyers with a wider range of opportunities.”
The report was compiled with insights from Sotheby’s International Realty agents across the globe as well as data from JPMorgan Private Bank, PricewaterhouseCoopers, Cerulli Associates, Henley & Partners, UBS and the National Association of Realtors (NAR).
Philip White | Sotheby’s International Realty
“Building on 2025’s robust foundation, the luxury market is seeing increased inventory, growing international homebuyer activity and a larger percentage of all-cash sales, particularly at the higher end,” Sotheby’s International Realty President and CEO Philip White said in a statement. “We expect global sales to strengthen, as luxury property buyers — the strongest segment of the market — are less constrained by geography. We are committed to providing clients with the right guidance for each of their real estate portfolios.”
What follows are some of the trends and forward-looking indicators luxury agents may want to keep an eye out for in 2026.
Transfers of wealth
With generational wealth transfers in advanced economies hitting an estimated $6 trillion in 2025, according to The Economist, younger generations are poised to invest more of that inherited wealth in luxury real estate in coming years, Sotheby’s International Realty’s report suggested.
Through 2028, about $124 trillion is estimated to transfer from the Silent Generation and Baby Boomers to younger generations, about $25 trillion of which is made up of real estate, according to reports by Cerulli Associates and CNBC (with use of Federal Reserve data).
The early bird
While the market continues to shift, Sotheby’s International Realty’s report suggested that homebuyers and sellers would benefit most if they make a move now, taking hold of what the firm called “first mover advantage” in order to get the best deals. Luxury buyers also now have the benefit of operating in a more balanced market than recent years, with the inventory of $1 million-plus-priced homes at its highest level since 2020.
Crypto trends
The report found that cryptocurrency is becoming a bigger player in luxury home purchases, particularly in Dubai, New York and California. The alternative asset may also be used more widely if federal regulations change to allow crypto to count toward mortgage qualification — a request the Federal Housing Finance Agency made of Fannie Mae and Freddie Mac in June 2025.
International movements
Despite global uncertainty in 2025, foreign buyers continued to invest in U.S. real estate. International residential transactions in the U.S. by foreign buyers increased 44 percent from April 2024 to March 2025, according to an NAR report cited in Sotheby’s International Realty’s 2026 Luxury Outlook.
President Trump’s push for a golden visa for foreigners in the U.S. may help bump that number up even further. The most foreign buyer transactions occurred in Florida, followed by California, Texas and New York, according to NAR.
“I expect to see more Chinese homebuyers in the U.S. because their economy is expanding, and there are more millionaires and billionaires there who want to invest their money in the U.S.,” NAR Chief Economist Lawrence Yun said in Sotheby’s International Realty’s report. “The economy in India is also growing, so we’re likely to see more investors from there.”
Desired features
Per usual, luxury homebuyers remain very concerned about security, with 81 percent of Sotheby’s International Realty agents saying that security and privacy are their clients’ top concerns. Therefore, features like gated properties, CCTV and panic rooms are more and more commonplace, the 2026 Luxury Outlook noted.
Luxury homebuyers also continue to prioritize lifestyle factors, seeking out established communities in golf or ski clubs and residences with wellness amenities. Branded residences also continue to be popular for their name-recognition, concierge services and swath of amenities.
Email Lillian Dickerson
Topics: Sotheby's International Realty Show Comments Hide Comments Sign up for Inman’s Morning Headlines What you need to know to start your day with all the latest industry developments Sign me up By submitting your email address, you agree to receive marketing emails from Inman. Success! Thank you for subscribing to Morning Headlines. Read Next
Design trends and tips to help your listing fly off the market in 2026
Luxury real estate 2026 outlook: A new era of precision, global mobility and intelligent growth
How this luxury pro became 1 of Elliman's top agents every year
What Starbucks and Domino's can teach you about 'impossible' goals
More in Luxury Lens
Is AI working for you, or are you working for AI?
How this Florida team stays $1B ahead of the competition
How this luxury pro became 1 of Elliman's top agents every year
Design trends and tips to help your listing fly off the market in 2026
Read next
Read Next
The ChatGPT prompt every agent needs (but 99% will never use)
Design trends and tips to help your listing fly off the market in 2026
Luxury real estate 2026 outlook: A new era of precision, global mobility and intelligent growth
How this luxury pro became 1 of Elliman's top agents every year
