Sotheby’s International Realty released its 2026 Mid-Year Luxury Outlook® report, revealing a fundamental force reshaping global luxury real estate: the rise of longevity-driven living. Wellness infrastructure and health-centered design are playing an important role in purchase decisions, as ultra-high-net-worth buyers increasingly seek long-term property investments that allow them to age in place. A trend that, combined with unprecedented wealth accumulation and a new generation of Millennial buyers, is transforming the global luxury real estate market.
“While broader housing markets continue to respond to mortgage rates, affordability constraints, and economic uncertainty, affluent buyers remain driven by wealth creation, lifestyle preferences, global mobility, and long-term legacy planning,” President and CEO of Realogics Sotheby’s International Realty (RSIR) Dean Jones stated. “Luxury real estate has continued to outperform the general market, buoyed by record levels of wealth creation, a historic transfer of approximately $6 trillion in inherited wealth, rising international buyer activity, and a growing preference for lifestyle-driven investments.”
The 2026 Mid-Year Luxury Outlook report draws on insights from Sotheby’s International Realty affiliated global real estate advisors worldwide who specialize in transactions in the $10M+ price category. Their expertise is complemented by data from industry leaders including Federal Reserve, UBS, the National Association of REALTORS®, the Global Wellness Institute, and more.
Through the global reputation and reach of SIR and the local expertise and trusted guidance of RSIR advisors, we continue to provide our buyers and sellers with the highest level of service through any market conditions.
As Brad Nelson, Chief Marketing Officer of SIR, shared, “In 2025, Sotheby’s International Realty achieved 9.3% sales volume growth in the U.S. over 2024, more than triple the performance of the overall housing market. In addition, the brand reached $182.4 billion in global sales volume, an increase of 16% year-over-year.”
Key findings from the 2026 Mid-Year Luxury Outlook report include:
- Longevity is the new luxury. The global longevity market is projected to grow from $5.3 trillion in 2023 to $8 trillion by 2030, according to UBS Global Wealth Management. Wellness real estate has more than doubled in size in five years and is projected to surpass $1.1 trillion by 2029. Nearly 38% of real estate professionals working in the $10 million-and-above segment report that aging in place has become a growing factor for homebuyers.
- Luxury real estate continues to outperform the general housing market. While the broader housing market has been sluggish, the upper end has continued to show signs of strength, boosted by the stock market, technology, and crypto.1
- Record wealth is fueling demand. The net worth of the top 1% of Americans reached $54 trillion by Q3 2025, according to the Federal Reserve, while the S&P 500 rose approximately 80% from early 2023 through 2025. Nearly 40% of the world’s millionaires reside in the United States, and researchers anticipate five million new millionaires globally by 2029.
- The luxury homebuyer pool is growing. More than half (55%) of real estate professionals surveyed who specialize in $10 million-and-above properties reported an increase in luxury homebuyers over the past 12 months, with average price increases of 5%.2
- Millennials continue to reshape the market. 66% of real estate professionals surveyed reported an increase in Millennial homebuyers. This number rose to 73% among those working in the US$5 million-and-above segment. The increase is driven by earned wealth and accelerating intergenerational wealth transfers.2
- Lifestyle is driving real estate decisions. 62% of real estate professionals surveyed cited lifestyle as an increasingly important factor for homebuyers, ranking above taxes (60%), economic stability (53%), and political stability (49%).2
- Global cities remain resilient. Markets such as New York City, San Francisco, Hong Kong, and Milan continue to see steady activity at the top end of the property market, supported by sustained interest in prime properties.
- Tax policy is influencing luxury home purchase decisions at every level. The expansion of State and Local Tax (SALT) deductions from $10,000 to $40,000 under the One Big Beautiful Bill Act is anticipated to increase purchases of high-end residences in states with high property tax rates.
Explore the complete 2026 Mid-Year Luxury Outlook report to gain deeper insight into the trends shaping luxury real estate worldwide. Reach out to an RSIR advisor to discuss the report’s findings and begin your real estate journey today.
References
- Five Wall Street Investors Explain How They’re Approaching the Coming Year, The Wall Street Journal, January 1, 2026
- Sotheby’s International Realty, 2026 Mid-Year Sotheby’s International Realty Agent Survey