While the broader U.S. housing market remained sluggish in 2025, the ultraluxury housing market defied the trend with explosive growth. Sales of homes priced at $10 million or more surged across the nation’s top luxury markets, even as affordability vanished for average buyers.
According to a Compass report reviewed by The Wall Street Journal, the top 10 U.S. luxury markets recorded over 1,600 sales in the $10M+ range last year. That marks a 32% increase from 2024 and a nearly 24% jump in total dollar volume—reaching $28.6 billion.
Nowhere was the boom stronger than in Los Angeles. L.A. County alone saw 292 ultraluxury sales in 2025, a 54% year-over-year rise. Even more striking, the total value of those transactions hit $5.36 billion—a 61% surge from the previous year.
This divergence highlights a growing two-tier housing economy. On one side, middle- and low-income buyers face record-high prices, elevated mortgage rates, and scarce inventory. On the other, ultra-wealthy purchasers continue to drive demand for trophy estates, often paying in cash and insulated from financing constraints.
Experts say this resilience stems from several factors. First, the ultrarich have seen their net worth grow through stock gains, private equity, and global asset appreciation. Second, many are relocating or expanding property portfolios amid shifting tax and lifestyle preferences—especially in sunbelt and coastal cities.
Los Angeles benefits from its status as an entertainment, tech, and international capital. Beverly Hills, Bel Air, and Malibu remain magnets for billionaires seeking privacy, views, and prestige. Moreover, new developments with smart-home tech, wellness amenities, and architectural distinction keep fueling demand.
Meanwhile, other luxury hubs like Miami, New York, and Aspen also posted strong gains—but none matched L.A.’s velocity. The Compass data suggests the ultraluxury segment is not just recovering but accelerating.
Critically, this boom offers little relief to the wider market. While luxury sales thrive, overall home sales volumes remain near historic lows. As a result, the gap between the housing experiences of the wealthy and everyone else continues to widen.
In short, the ultraluxury housing market isn’t just surviving the downturn—it’s thriving. And in cities like Los Angeles, it’s rewriting the rules of real estate success, one $10 million sale at a time.
