Buyers From The North Drive Florida To Top of Fastest-Growing Luxury Markets
Realtor.com® data reveals luxury prices in Chicago, Boston, Brooklyn, and Manhattan, N.Y. stall
SANTA CLARA, Calif. -- Interest from prospective home buyers in Northern states have propelled two Florida counties -- Sarasota and Collier -- to the top of the nation's fastest-growing luxury housing markets, according to the May 2018 Luxury Home Index from realtor.com®, The Home of Home SearchÃ¢" .
In May, the top 5 percent most expensive home prices in Sarasota (North Port) and Collier(East Naples) counties grew 19 and 14 percent, respectively. Additionally, Broward County, Fla. -- home to Fort Lauderdale and ranked No. 19 on the list -- grew 9 percent year-over-year. Much of this growth is attributed to increased interest from buyers located in New York, Boston and Chicago – markets where, in many cases, luxury prices have stalled, according to realtor.com® search data.
"Luxury prices in the Sunshine State are rising quickly as buyers from places like New York, Boston, and Chicago get wind that there is a better bang for their buck available down South," said Javier Vivas, director of economic research for realtor.com®. "Meanwhile, we are seeing signs of a luxury market glut in many established markets, which is in some cases leading to spillover demand for their less pricey neighbors."
May 2018 Top 10 Fastest Growing Luxury Markets
Market (Local County Seat)
% Change Year- over-Year
Sarasota County (Sarasota)
Queens County (Queens, N.Y.)
Collier, County (East Naples)
Douglas County (Castle Rock, Colo.)
San Mateo County (Redwood City, Calif.)
King County (Seattle)
Marin County (San Rafael, Calif.)
Snohomish County (Everett, Wash.)
Hudson County (Jersey City, N.J.)
Santa Clara County (San Jose, Calif.)
Source: Realtor.com® Luxury Home Index with data as of March 2018. The realtor.com®luxury home index is based on a 12-month moving average of sales prices and measures price growth using January 2011 as the base.
Luxury Home Prices in Boston, Chicago, and New York Continue to Slow While buyers in New York, Boston, and Chicago may be driving growth in places like Florida, luxury prices within those markets themselves have stalled. In Boston's Suffolk County, Chicago's Cook County, and New York's Manhattan and Suffolk counties, for instance, over the past year luxury home prices decreased 2.7, 2.2, and 2.1 and 1.3 percent, respectively. In Middlesex County (Cambridge, Mass.) and Kings County (Brooklyn, N.Y.), prices decreased 1.4 and 2.4 percent, respectively, in just the past month alone.
In New York, in particular, realtor.com® search data shows demand for luxury homes in Manhattan and Brooklyn, where luxury prices have stalled at $4.6 and $2.2 million, respectively, also appears to be spilling rapidly into the lower-priced adjacent markets of Queens, N.Y. and Hudson County (Jersey City, N.J.). Luxury prices in those counties have grown at 15 and 12 percent in the past year, respectively, reaching $1.2 and $1.3 million.
Western Luxury Markets Continue to Grow In addition to the rising interest in Florida, Northern California, Colorado, and Washingtoncontinue to dominate the top 20 fastest growing luxury markets, with double-digit yearly growth in luxury prices.
Three California Bay Area markets -- San Mateo County (Redwood City), Marin County (San Rafael), and Santa Clara County (San Jose) -- remain among the top five most expensive luxury markets in the country, with entry points between $2.7 and 3.5 million. Most notably, these three markets are also among top 10 fastest-growing markets, with luxury prices continuing to accelerate and now rising at 12-13 percent year-over-year.
Primary and secondary luxury markets in Colorado continue to attract buyers and grow faster than the rest of the country, with entry-level luxury prices in Douglas County (Castle Rock, Colo.); Jefferson County (Golden, Colo.); Denver County and Boulder County all posting double-digit yearly growth.
Similarly, the Seattle area continues to see strong demand for luxury homes, with entry-level luxury prices in Seattle and Snohomish, Wash., growing at 12 to 13 percent year-over-year. Luxury homes in these Northwest markets remain relatively affordable for West Coast standards, making them an attractive option for upscale buyers in Southern states.