Real Estate

Boston luxury home market hits $3 million average value

The typical luxury home now commands an average price tag of around $1.8 million nationwide — but in Boston, that figure is far higher.

St. Regis Residences are luxury housing constructed in the Seaport. Erin Clark / The Boston Globe

August 15, 2025

2 minutes to read

Boston’s high-end housing market just reached a new milestone: the typical luxury home value in the city surpassed $3 million, according to new data from Zillow. That ranks Boston eighth among the country’s most competitive metro areas for luxury property values.

The typical luxury home, defined as the top 5% of home values in a given area, now commands an average price tag of around $1.8 million nationwide — but in Boston and other competitive metro areas, that figure is far higher.

San Jose tops the list in terms of ultra-high-end home values at $5.9 million, followed by Los Angeles ($5.1 million) and San Francisco ($4.8 million). Boston’s luxury home value is on par with other coastal cities like Seattle ($3.2 million) and New York ($3.9 million).

On the lower end, Buffalo’s luxury properties average just above $835,000.

Over the past year, luxury home values have increased 2.7% – nearly double the 1.4% growth in the broader housing market.

“Despite a slower market, home prices have continued to climb — a promising sign for sellers considering listing their properties,” Zillow Senior Economist Orphe Divounguy said in a release. “Luxury home values, in particular, have remained resilient, even as both buyers and sellers took a more cautious approach after the April stock market volatility.”

For Bridget Fortunate, an agent at Elevated Residential, a luxury real estate agency in Boston, the $3 million figure was “a little bit shocking,” she told Boston.com in an interview.

“I would say the biggest market is between that $1 to $2 million [range],” she said. “That’s where we’re really hurting right now, because we have super low inventory.”

Even with the shortage, Boston’s luxury home values rose 5.1% year-over-year, according to the Zillow report. Fortunate attributed the increase to steady demand coupled with pricing power.

“Our demand, I believe, is still firmly increasing. When you don’t have the inventory, the prices are going to increase, because people can,” she said.

Even with a low inventory, she believes it’s a great time for buyers in Boston’s luxury home market.

“Yes, rates are higher, but if you are in the position where you can buy right now, it’s a really great time to get a deal. And that’s where I’ve had a lot of luck with my personal buyers,” she said.

Midwest metro areas have been stealing the spotlight for the strongest luxury home value growth, including Cincinnati (7.3%), Columbus (6.8%), Chicago (6.3%), and Cleveland (6.1%) with Las Vegas also showing a 6.1% gain. In contrast, luxury prices declined in Sun Belt cities Austin (-2.1%), Tampa (-1.7%), and Miami (-0.5%).

While luxury homes still come at a premium, the gap between luxury home prices and mid-market properties has narrowed since 2020, from 5.5 times higher to about 5 times higher today.