2026 Report Reveals Insights on Effects of US$6 Trillion in Inherited Wealth, Surge in Foreign Buyer Activity in the U.S., and Increased Threshold for Luxury Homes
DESTIN, Fla. – Scenic Sotheby’s International Realty has released its 2026 Luxury Outlook® report, analyzing the evolving state of global luxury real estate markets and the economic policies and factors that influence them most. The latest edition offers insights into the trends and developments shaping the sector. After outperforming traditional real estate in both sales and value in 2025, the luxury market is expected to continue its upward trajectory in 2026. Key findings include the US$6 trillion inherited in 2025, a transfer of generational wealth that is becoming a major demand driver for luxury real estate, a 44% surge in foreign buyer activity in the U.S., and the threshold for a luxury home in the U.S. is rising, with national expectations starting at around $1.3 million; higher than in many other countries.
“The 2026 Luxury Outlook underscores what we are seeing firsthand across our markets — a luxury buyer who is more informed, more global, and increasingly motivated by long-term value, lifestyle alignment, and strategic timing,” said Wes Madden, co-owner and chief operating officer of Scenic Sotheby’s International Realty. “As generational wealth continues to transfer and international interest accelerates, expert guidance and local market intelligence are more critical than ever in helping clients navigate opportunities at the highest level.”
The 2026 Luxury Outlook report draws on insights from Sotheby’s International Realty agents worldwide who specialize in transactions in the US$10M+ price category. Their expertise is complemented by data from industry leaders, including JPMorgan Private Bank, PricewaterhouseCoopers, Cerulli Associates, Henley & Partners, UBS, and the National Association of Realtors (NAR).
Key takeaways in the report include:
- Luxury real estate continues to outperform the general housing market, driven by sustained wealth creation and less sensitivity to macroeconomic factors.
- Generational wealth transfers reached $6 trillion in 2025, 10% of global GDP, and will continue fuelling luxury demand.
- To respond to changing market conditions, both home buyers and sellers should consider “first mover advantage,” as acting decisively benefits them – early movers often secure better deals or faster sales.
- Inventory levels of new construction homes have returned to pre-pandemic norms, creating a healthier, more balanced market. U.S. supply of homes priced at $1M is at its highest since 2020.
- Crypto is increasing influencing luxury purchases, especially in markets like Dubai, New York and California. Regulatory changes may allow crypto assets to count toward mortgage qualification.
- 60% of affiliated agents have reported that lifestyle factors and integration of wellness amenities, ski/golf communities are more important than ever in influencing buyer decisions.
- There is significant cross-border demand, the foreign buyer activity surged 44% in the U.S. with Florida, California, Texas and New York as leading destinations.
- 81% of affiliated agents cite security as a top concern; features like gated access, CCTV, backup power, and even panic rooms have become increasingly common.
- Growing demand for homes that accommodate multiple generations, driven by legacy planning and lifestyle.
- Major tournaments (e.g., 2026 FIFA World Cup, 2028 LA Olympics) can boost property values near host cities, but long-term gains can depend on urban planning.
- The appeal for branded residences continues to grow as high-service, low-maintenance living is expanding globally.
By The Numbers
$6T
Inherited globally in 2025 — nearly 10% of global GDP reshaping luxury real estate demand.
+44%
Increase in foreign buyer activity across the U.S., led by Florida, California, Texas, and New York.
$1.3M
New national baseline for luxury home pricing in the United States.
$10M+
Transaction tier analyzed through insights from Sotheby’s International Realty advisors worldwide.
60%
Of agents say lifestyle and wellness features now outweigh traditional buying motivators.
81%
Of agents report security as a top buyer priority, driving demand for gated access, backup power, and enhanced safety features.
2020–Now
Inventory of $1M+ homes has rebounded to its healthiest level since pre-pandemic norms.
