Boston luxury home market hits 3 million average value

Boston's luxury housing market has reached an average value of $3 million, positioning it eighth among U. S. metro areas for luxury property values. The typical luxury home nationwide commands around $1. 8 million, but Boston's figure is considerably higher, reflecting its competitive market.

Zillow's data reveals a 5. 1% year-over-year increase in luxury home values, contrasting with a broader housing market growth of only 1. 4%. Bridget Fortunate, an agent from Elevated Residential, noted that the $3 million milestone was unexpected and emphasized the challenges in the $1 to $2 million range due to low inventory. Demand in Boston remains strong, which Fortunate attributes to limited supply allowing sellers to command higher prices.

Midwest cities like Cincinnati and Columbus have shown notable luxury home value growth, while Sun Belt cities have experienced declines. Despite higher interest rates, Fortunate believes it’s a good time for buyers who can navigate the market. The narrowing gap between luxury and mid-market property prices indicates evolving market dynamics since 2020.