Thursday, June 11, 2026
Most luxury housing markets still hold pandemic gains
Five years after the pandemic housing boom transformed the luxury market, only two metro areas have surpassed their pandemic-era peaks, according to Realtor.com.
Five years after the COVID-19 pandemic reshaped the nation's housing market, luxury home prices have settled into markedly different trajectories across the United States, with some markets continuing to build on pandemic-era gains while others have surrendered them entirely, according to a new report from Realtor.com.
The report found luxury home markets nationwide have retained an average of 59% of the appreciation experienced during the pandemic housing boom. But that figure masks wide regional disparities.
Only two markets -- Minneapolis-St. Paul, Minn., and Boise, Idaho -- have surpassed their pandemic-era peaks and continued climbing, Realtor.com said. Meanwhile, five markets have fallen below their pre-pandemic luxury price levels, including the San Francisco Bay Area, which experienced the steepest reversal among markets analyzed.
"The pandemic didn't create the same luxury market everywhere, and the correction hasn't played out the same everywhere either," Realtor.com senior economist Anthony Smith said in a statement. "The ones still holding their gains have something the others don't: real reasons for buyers to be there that have nothing to do with low mortgage rates and remote work."
Nationally, the entry point for luxury housing -- defined as the top 10% of listings in a market -- reached $1.28 million in May, down 1.4% from a year earlier. Realtor.com said it marked the 26th consecutive month of annual declines in the luxury threshold, although the pace of price decreases has moderated compared with early 2025.
The share of homes listed for $1 million or more remained elevated at 13.8% of the market, well above the 7% to 9% range that prevailed before the pandemic.
Minneapolis-St. Paul led the nation in retaining pandemic-era gains, with luxury prices now sitting 33.2% above the market's previous peak. Boise ranked second, retaining 109% of its pandemic run-up after luxury prices surged more than 87% during the boom years.
Other markets that preserved much of their gains included Boston, Bend, Ore., Riverside-San Bernardino, Raleigh, N.C., Las Vegas and Wilmington, N.C.
At the other end of the spectrum, San Francisco's luxury market fell 142% below its pandemic run-up, erasing all gains and dropping beneath pre-pandemic levels. Realtor.com attributed the decline to layoffs in the technology sector, population outflows, and a smaller pool of buyers.
San Jose, Denver, urban Honolulu, and Kahului-Wailuku, Hawaii, also fell below their pre-pandemic baselines. The Washington, D.C., metropolitan area retained just 3.2% of its pandemic-era gains.
San Diego's luxury housing market ranked eighth among those giving back the largest share of pandemic gains. The report found the region retained 13.3% of its run-up, with the local luxury threshold standing at approximately $2.85 million in May, down from a pandemic peak of $3.9 million reached in July 2023.
Despite the market's broader cooling, Realtor.com said some high-cost regions continue to attract affluent buyers. In the Bay Area, liquidity events tied to artificial intelligence companies have helped sustain demand at the upper end of the market. The report found down payments on luxury homes in the region remain significantly above pre-pandemic norms.
The analysis was based on active listings of existing homes in May 2026 and defined luxury housing using market-specific price thresholds. Realtor.com categorized the top 10% of listings as entry-level luxury, the top 5% as high-end luxury and the top 1% as ultraluxury properties.
The report found luxury home markets nationwide have retained an average of 59% of the appreciation experienced during the pandemic housing boom. But that figure masks wide regional disparities.
Only two markets -- Minneapolis-St. Paul, Minn., and Boise, Idaho -- have surpassed their pandemic-era peaks and continued climbing, Realtor.com said. Meanwhile, five markets have fallen below their pre-pandemic luxury price levels, including the San Francisco Bay Area, which experienced the steepest reversal among markets analyzed.
"The pandemic didn't create the same luxury market everywhere, and the correction hasn't played out the same everywhere either," Realtor.com senior economist Anthony Smith said in a statement. "The ones still holding their gains have something the others don't: real reasons for buyers to be there that have nothing to do with low mortgage rates and remote work."
Nationally, the entry point for luxury housing -- defined as the top 10% of listings in a market -- reached $1.28 million in May, down 1.4% from a year earlier. Realtor.com said it marked the 26th consecutive month of annual declines in the luxury threshold, although the pace of price decreases has moderated compared with early 2025.
The share of homes listed for $1 million or more remained elevated at 13.8% of the market, well above the 7% to 9% range that prevailed before the pandemic.
Minneapolis-St. Paul led the nation in retaining pandemic-era gains, with luxury prices now sitting 33.2% above the market's previous peak. Boise ranked second, retaining 109% of its pandemic run-up after luxury prices surged more than 87% during the boom years.
Other markets that preserved much of their gains included Boston, Bend, Ore., Riverside-San Bernardino, Raleigh, N.C., Las Vegas and Wilmington, N.C.
At the other end of the spectrum, San Francisco's luxury market fell 142% below its pandemic run-up, erasing all gains and dropping beneath pre-pandemic levels. Realtor.com attributed the decline to layoffs in the technology sector, population outflows, and a smaller pool of buyers.
San Jose, Denver, urban Honolulu, and Kahului-Wailuku, Hawaii, also fell below their pre-pandemic baselines. The Washington, D.C., metropolitan area retained just 3.2% of its pandemic-era gains.
San Diego's luxury housing market ranked eighth among those giving back the largest share of pandemic gains. The report found the region retained 13.3% of its run-up, with the local luxury threshold standing at approximately $2.85 million in May, down from a pandemic peak of $3.9 million reached in July 2023.
Despite the market's broader cooling, Realtor.com said some high-cost regions continue to attract affluent buyers. In the Bay Area, liquidity events tied to artificial intelligence companies have helped sustain demand at the upper end of the market. The report found down payments on luxury homes in the region remain significantly above pre-pandemic norms.
The analysis was based on active listings of existing homes in May 2026 and defined luxury housing using market-specific price thresholds. Realtor.com categorized the top 10% of listings as entry-level luxury, the top 5% as high-end luxury and the top 1% as ultraluxury properties.
