High-end buyers have been unbothered in this housing market. Largely unaffected by fluctuating mortgage rates and sky-high prices, these buyers have had their pick of homes and faced the least amount of housing anguish over the last five years.
This affluent crowd is ready for another year of luxury even as the market challenges and affordability constraints of 2024 hang around. Our national Zonda Market Ranking (ZMR), which adjusts sales for supply and seasonality, revealed that the high-end market overperformed for the whole of 2024, which is why we’ve chosen to name some top markets to watch for high-end buyers this year.
The listed metros, stretching from the Northwest to the East Coast, serve up a wholesome mix of high-income job growth, healthy economies, and (mostly) enjoyable weather.
Zonda, over the last four years, has zoomed in on a variety of markets to watch, including those with relative growth potential amid the pandemic housing boom in 2021. In 2022, we looked at markets for entry-level buyers as home prices skyrocketed, and, in 2023, we found the most “interesting” markets rather than the “best.”
For 2024, we nailed down the top affordable markets that had the best combinations of affordability and resilient demand, and, this year, we look at the other end of the spectrum as wealthier buyers are among the strongest today.
Rolling into this fresh year, Zonda expects more supply, a modest improvement in sales, and a complicated mortgage backdrop, as the unbothered high-end buyers—armed with large down payments and asset leveragability—shape the market.
The strength in the high-end market can be attributed to a few main factors:
- Luxury buyers are the least challenged by interest rates. Buyers of high-end homes tend to have large amounts of cash to tap from investments or sales of their previously owned homes, which makes them less affected by higher or volatile mortgage rates.
- Wealth accumulation from a strong stock market and home price appreciation. The S&P 500 hit a record high in early December and closed 2024 on a remarkable note. The index increased 23% for the year after rising 24% in 2023, marking its first back-to-back annual gains of more than 20% since 1998. The benchmark index also ended 2024 up 82% over the last five years. Those who own stocks have seen a massive jump in their wealth.
In addition, high-end buyers who already own homes have benefited from strong home price appreciation during the pandemic and have a record level of home equity. American homeowners hold over $30 trillion in equity, according to Zonda calculations.
- A solid labor market with consistent wage growth. The U.S. economy continues to generate a healthy amount of job and income growth. While most labor market indicators have returned to pre-pandemic levels, wage growth has been the exception and remains sticky. Average hourly earnings posted solid year-over-year gains during the last several months of 2024, which will continue to support consumer spending. The wage growth is in conjunction with consistent job growth.
Wealth accumulation and a strong labor market have significantly boosted confidence for consumers in the top third of incomes compared with those in the middle and lower thirds, per the University of Michigan’s Index of Consumer Sentiment. In addition, there’s enthusiasm from the top third of incomes for the future, with stronger optimism about where things are going versus where they are now. This momentum, fueled by the potential for lower taxes and pro-growth business policies from the Trump administration, could strengthen high-end consumer confidence and expand their influence in 2025 and beyond.
To generate our list of top markets for high-end buyers in 2025, we included and weighted the following inputs:
- High-income job growth—current and from 2019. Job growth is a key driver of housing demand, and high-income job growth is even more important when we consider sales of high-end homes. Job creation in the high-wage professional and business services, financial activities, and information sectors have the strongest correlation to purchases of newly built homes.
- State income taxes. Some higher-income folks prioritize states with low or no income taxes when considering where they will buy a home. Retirees are particularly drawn to states with no state income tax as this means lower overall taxes on Social Security benefits, pensions, IRAs, or 401(k) distributions.
- Sales rates and our ZMR for high-end price tiers. These are our demand metrics, as they tell us where high-end new-home sales are the strongest and have grown the most since 2019.
- Home price appreciation since 2019. One measure of wealth accumulation is to look at markets where home prices have increased the most since before the pandemic. The national median sales price has increased a whopping 62.8% from 2019, generating a massive amount of equity for homeowners.
- Homeownership rates of Gen X and baby boomers by market. The likelihood of homeownership increases with age, and those who already own homes have benefited from rising home values. According to the most recent data from the U.S. Census, Gen X’s homeownership rate was 74% in 2023. Meanwhile, baby boomers, the second-largest living generation and the largest holders of assets and wealth, had the highest homeownership rate at 80%.
- Change in resale supply from 2019. Resale inventory is expected to continue loosening across the country in 2025. Some regions and markets, particularly those in the Sun Belt, are experiencing larger supply increases than others. As resale supply competes directly with new-home builders, markets with higher resale inventory relative to pre-pandemic levels scored lower in our ranking.
- Homeowners insurance. The spike in homeowners insurance costs in recent years has become a key concern for home buyers across all income levels. Markets with higher insurance costs were down-weighted in our list.
For our list, we evaluated Zonda-covered markets with populations of 750,000 or more. This comparatively low population cutoff allowed us to include markets outside the traditionally high-priced major coastal metros.
Metros in the Carolinas dominate our list with four of the top 10: Charlotte and Raleigh, North Carolina, and Columbia and Charleston, South Carolina. The Carolinas continue to benefit from the half-back phenomenon—where Northeasterners or Midwesterners who moved to Florida relocate to Georgia, the Carolinas, or Virginia. Halfbacks are becoming increasingly common with Florida’s rising insurance and housing costs as well as property tax bills.
Charlotte
Mild weather, four seasons, access to the Blue Ridge Mountains and the Carolina coastline, and employment opportunities place Charlotte as a migration magnet. It also sees migration from larger cities due to its standing as the second-largest banking center: 100,000-plus finance professionals work in the metro, supported by over 25 finance institutions with global or regional headquarters.
Stats at a glance:
- High-end ZMR change from 2019: 50% (13th)
- High-end new-home sales rate change from 2019: 70% (6th)
- Home price appreciation since 2019: 64% (11th)
- High-income job growth YOY: 1.6% (8th)
- High-income job growth change from 2019: 11.4% (14th)
Pros: Charlotte is affordable relative to major coastal cities; has diverse neighborhoods, including a bustling urban center and quiet suburbs; is home to Queens University of Charlotte and UNC Charlotte; and has great connectivity through its airport.
Cons: Rapid growth has contributed to traffic congestion and urban sprawl; it has limited public transportation options as well as hot and humid summers.
Raleigh
A key driver of Raleigh’s success is its thriving labor market. It benefits from employment in tech, particularly in the Research Triangle, along with health care, life sciences, and education. The high concentration of universities (Duke, UNC Chapel Hill, North Carolina State University, and more) attracts young folks to the area, while the robust job market encourages them to stay.
Stats at a glance:
- High-end ZMR change from 2019: 41% (15th)
- High-end new-home sales rate change from 2019: 84% (4th)
- Home price appreciation since 2019: 70% (5th)
- High-income job growth YOY: 0.9% (16th)
- High-income job growth change from 2019: 18.7% (6th)
Pros: Raleigh has a strong economy, proximity to the mountains and the ocean, culture, better affordability than other large markets, and relatively good weather.
Cons: Rapid growth has caused increased traffic congestion, infrastructure challenges, and crowded schools; it also has a lack of public transportation and has become more expensive relative to itself.
Charleston
Charleston was a more under-the-radar market before the pandemic but has grown in prominence over the past few years. The metro is significantly overperforming for both overall new-home sales and sales in the high-end segment, per our ZMR.
To many, Charleston offers the perfect blend of coastal living, charm, historical architecture, a vibrant culinary scene, and abundant activities. The market holds multigenerational appeal and ranked as our second in the nation for Baby Chasing, a term to describe grandparents moving to the same town as their millennial children to be near the grandbabies.
Stats at a glance:
- High-end ZMR change from 2019: 94% (4th)
- High-end new-home sales rate change from 2019: 60% (11th)
- Home price appreciation since 2019: 57% (22nd)
- High-income job growth YOY: 1.9% (5th)
- High-income job growth change from 2019: 23.7% (2nd)
Pros: Charleston has diversified neighborhoods, miles of coastline, waterfront parks, picturesque marshes, and a mild climate.
Cons: Higher-priced coastal areas face constraints due to limited land availability and development restrictions; it also has a less diversified economy than larger cities, is crowded during high tourism months, has a high risk of hurricanes and tropical storms, and is relatively small.
Columbia
With a lower cost of living than the national average and relative housing affordability, Columbia attracts young professionals, families, and retirees alike.
For luxury buyers, the market features high-end “pockets,” which are mostly found around Lexington and Irmo to the west of Columbia, surrounding Lake Murray. These areas offer desirable lakefront homes, with golf and country club options.
Columbia is generally an affordable housing market, with a median new-home price under $300,000, which means you can get a luxury home for a fraction of the cost compared with Raleigh, Atlanta, or Charleston.
Stats at a glance:
- High-end ZMR change from 2019: 8% (34th)
- High-end new-home sales rate change from 2019: 59% (12th)
- Home price appreciation since 2019: 50% (36th)
- High-income job growth YOY: 2.8% (1st)
- High-income job growth change from 2019: 13% (12th)
Pros: Columbia is home to the University of South Carolina, is centrally located with easy access to the mountains and coast, and has mild winters as well as plenty of activities for outdoor enthusiasts with Congaree National Park and access to the Congaree, Saluda, and Broad rivers.
Cons: It has limited public transportation, hot and humid summers, and some hurricane and tropical storm risk; it lacks some of the amenities and entertainment options found in larger cities; and it is relatively small in size (ranked 70th largest metro in the country).
Nashville
Nashville, Tennessee, has attracted plenty of new residents in recent years, ranking seventh in 2022 and 2023 for growth in domestic net migration among markets with populations of more than a million.
The metro has also seen a surge in corporate relocations, driven by its favorable tax environment, relatively low cost of living, and state business incentives.
Exemplifying the metro’s business appeal, Oracle announced plans to move its global headquarters to Nashville, just a few years after relocating from Silicon Valley to Austin, Texas. The tech giant has ambitions in the health care industry and wants to position itself at the center of Nashville’s thriving scene—the market is home to some 900 health care companies.
Stats at a glance:
- High-end ZMR change from 2019: 31% (20th)
- High-end new-home sales rate change from 2019: 60% (10th)
- Home price appreciation since 2019: 65% (9th)
- High-income job growth YOY: -1.4% (58th)
- High-income job growth change from 2019: 11.7% (13th)
Pros: Nashville has become a boomtown; it is rich in culture and entertainment amenities and is the capital of country music; and it has outdoor amenities, including Warner Parks, Radnor Lake, and the Great Smoky Mountains.
Cons: It is a tight land market with topography issues for new-home construction and is considerably less affordable relative to history; it also can experience hot, muggy summers and cold, wet winters.
Indianapolis
Indianapolis is a fast-growing market for new-home construction that ranks as one of our top markets for high-end buyers in 2025. Among our sample markets, the metro ranks third for year-over-year growth in high-income jobs, which is translating to strong sales growth at high-end prices. Impressively, Indianapolis holds the No. 1 position on our ZMR at the high-end tier and the No. 3 position for high-end growth since 2019.
Indianapolis wasn’t a huge population magnet pre-pandemic, but it became a net migration winner once people had more flexibility in where and how they worked. Many natives who left for employment opportunities in larger cities found that they could move back, work from home, and retain their higher salary.
Stats at a glance:
- High-end ZMR change from 2019: 121% (3rd)
- High-end new-home sales rate change from 2019: 30% (20th)
- Home price appreciation since 2019: 42% (52nd)
- High-income job growth YOY: 1.9% (3rd)
- High-income job growth change from 2019: 7.3% (26th)
Pros: Indianapolis has a healthy, diverse economy with large employers in advanced manufacturing, life sciences, information technology, and agribusiness; it also has low development costs and limited regulation as well as reasonable land availability.
Cons: Among our top markets, it has the lowest rate of home price appreciation from 2019, doesn’t get as much of the buzz as the Sun Belt markets, and experiences cold weather.
Seattle
After strong hiring during the pandemic, layoffs, rightsizing, and an overall industry slowdown over the past two years have caused Seattle’s tech employment to settle at pre-pandemic levels. The city, however, is emerging as a hub for artificial intelligence, which will support Seattle’s appeal to high-wage tech workers.
In Oxford Economics’ 2024 Global Cities Index, Seattle ranked sixth globally, following New York; London; San Jose, California; Tokyo; and Paris. Its thriving tech sector, anchored by giants like Amazon and Microsoft, propelled it to fourth place in the index’s economics category.
Stats at a glance:
- High-end ZMR change from 2019: 4% (37th)
- High-end new-home sales rate change from 2019: 62% (9th)
- Home price appreciation since 2019: 60% (17th)
- High-income job growth YOY: -0.3% (35th)
- High-income job growth change from 2019: 7.6% (25th)
Pros: Seattle has one of the highest GDP per capita levels in the world due to a diverse array of major employers; 68.5% of Seattle workers are white-collar compared with 62.3% nationwide; and it has gateway city/international appeal as well as outdoor lifestyle and activities.
Cons: It has slower than expected population growth, an aging population, a growing unhoused population, and less economic diversity than some other large markets.
Las Vegas
Nevada is another market that has benefited from shifting working conditions during and after the pandemic. Las Vegas, which was once predominantly reliant on the leisure and hospitality industry, has diversified its local economy, with high-income jobs growing by 7.9% since 2019. Additionally, the market has experienced consistent positive domestic net migration every year since 2012, including during the pandemic.
Interest from these relocators, along with investors and local buyers, have resulted in Las Vegas having one of the tightest resale supplies in the nation. Nevada’s absence of a state income tax appeals to high-income earners looking for a tax haven, while its increasingly diverse economy supports housing demand across all different price points and locations.
Stats at a glance:
- High-end ZMR change from 2019: 39% (16th)
- High-end new-home sales rate change from 2019: 37% (18th)
- Home price appreciation since 2019: 54% (26th)
- High-income job growth YOY: -1.9% (61st)
- High-income job growth change from 2019: 7.9% (24th)
Pros: Las Vegas is a tax haven. It has world-class entertainment, nightlife, and restaurants; mild winters; professional sports teams; an international airport; and proximity to outdoor recreation.
Cons: It experiences extreme summer heat. It also has a tight housing market; lack of green spaces; higher-than-average crime rates in some areas; and crowds and congestion around the Strip.
Boston
Boston boasts a diverse economy, anchored by high-wage industries like technology, finance, and professional and business services. Renowned as a hub for innovation and entrepreneurship, the city has consistently ranked as the nation’s top market for life sciences and life sciences talent, according to CBRE. The metro is also home to some of the world’s most prestigious institutions, including Harvard, MIT, and Boston University, which attract students and professionals from around the globe and contribute to a highly skilled workforce.
Stats at a glance:
- High-end ZMR change from 2019: 64% (10th)
- High-end new-home sales rate change from 2019: 87% (3rd)
- Home price appreciation since 2019: 51% (35th)
- High-income job growth YOY: -0.2% (34th)
- High-income job growth change from 2019: 3% (35th)
Pros: Boston is rich in history and culture as well as a big sports town; it also has an extensive and efficient public transportation system.
Cons: It is densely populated; experiences harsh winters; and has strict zoning laws and regulatory requirements, some of which are intended to preserve the city’s character.
