While people have different definitions for luxury, the word typically elicits extravagance, grandeur, and exclusivity. And in the housing market, it usually prompts visions of a massive mansion dripping with amenities.
But the definition of today’s luxury housing is changing, according to Pamela Liebman, CEO of The Corcoran Group, the real estate firm founded by Shark Tank star Barbara Corcoran in 1973. In fact, many wealthy buyers are leaning into the trend of understated “quiet luxury” when purchasing a home.
“When it comes to home buying, quiet luxury doesn’t have to be the biggest estate on the block,” Liebman told Mansion Global. “It could be a place that makes you so happy and it may have all your favorite bells and whistles, which could be something like a beautiful porch where you sit and have tea or a cocktail at the end of the day versus being a major estate that everyone drives past and wants to know who lives there.”
“Quiet luxury is luxury that makes you happy,” she continued. “Luxury in your face might be spitting it out to the rest of the world.”
In fact, a recent report from vacation-home co-ownership platform Pacaso shows smaller homes are becoming more luxurious and are gaining popularity among high net-worth individuals. The average new-home size dropped from 2,314 square feet in Q4 2022 to 2,169 square feet in Q4 2024, U.S. Census Bureau data shows.
“Affluent buyers are prioritizing convenience and financial flexibility, seeking homes that require less maintenance without sacrificing those high-end finishes we all love,” according to Pacaso. Plus, they’re choosing smaller homes because they’re easier to purchase in cash instead of taking out a mortgage while rates are still high.
Where ‘quiet luxury’ buyers are looking
Quiet luxury is also about where you buy. While the major luxury housing markets include the Hamptons, New York City, Los Angeles, Miami, Palm Beach, and Dallas, there are several emerging markets now on the radar.
On the West Coast, Liebman noted Sonoma County, specifically Healdsburg, Calif., “is an interesting spot” where luxury home sales have surged 150% year-over-year and 20% of homes have received multiple offers.
According to Zillow, the average home price there is $1.1 million, about a 17% increase during the past five years. And as of late July, the average listing price was more than $1.5 million. Sonoma County has become a hot spot for buyers from urban areas like San Francisco and Los Angeles, according to Daniel Casabonne of Sotheby’s International Realty, because of its vineyard views and smaller-town vibe.
Park City, Utah, has also become a popular destination to buy a luxury home, particularly for people seeking a skiing destination, Liebman said—and it’s easier to get to than Aspen via a commercial flight.
“You know, not everybody has a private plane,” she said. Still, the average home price in Park City is a cool $1.5 million, according to Zillow. Namely, the Park City new-construction luxury condo market has been growing, and median sales prices rose 23% in Q2 to $1.85 million, data from Park City Investor shows.
On the East Coast, Lake Burton, Ga.; Asheville, N.C.; parts of South Carolina, and Florida’s panhandle have also become popular for luxury homebuyers, Liebman said. In Lake Burton, many 2024 listings exceeded $5 million, and Mayfair International Realty recently exclusively listed a $10 million private island there.
Meanwhile, the luxury market in Florida’s panhandle is continuing to grow and inventory levels are on the rise. Specifically, Inlet Beach, Santa Rosa Beach, and Destin all are emerging as luxury markets with new upscale beachfront properties boosting overall prices. The average home price in Inlet Beach is $1.7 million, according to Zillow.
“Legacy destinations remain as timeless as ever, [but] Florida’s panhandle is solidifying its status as a favorite for vacationers,” Pacaso CEO and cofounder Austin Allison wrote in the company’s list of the top 20 luxury vacation home markets of 2024.
