America's luxury housing boom spreads to second-tier cities
America's luxury housing boom is expanding beyond Manhattan, Los Angeles, and other established wealth hubs as affluent buyers increasingly bypass traditional enclaves in favor of second-tier cities offering lower entry points, growing tech and finance industries, and outdoor lifestyles that coastal powerhouses cannot match at the same price point. A new Redfin report shows pending luxury home sales nationwide rose 5.2 percent year over year through May—the largest gain since late 2024—with San Francisco, Nashville, and San Diego leading the surge.
Key Takeaways
- Pending luxury home sales nationwide climbed 5.2 percent year over year through May, per Redfin data cited by Robb Report.
- San Francisco led with a nearly 46 percent jump in pending luxury sales, fueled largely by AI-driven wealth creation.
- Nashville and San Diego followed at 24.5 percent and 22.5 percent, outpacing Florida's high-end hubs.
- Second-tier magnets like Austin, Scottsdale, and West Palm Beach have drawn wealthy buyers for years, with Austin's millionaire population more than doubling over the past decade.
- Smaller markets including Salt Lake City, Tampa, and Naples are gaining momentum as new luxury contenders.
Why Are Wealthy Buyers Bypassing Traditional Luxury Hubs?
The shift has been building for years. In 2024, a USA Wealth Report from Henley & Partners found that second-tier cities such as Austin, Scottsdale, and West Palm Beach had become some of the nation's fastest-growing magnets for wealthy buyers. Austin's millionaire population more than doubled over the past decade, fueled by an influx of tech companies and highly compensated workers.
Redfin defines luxury homes as those estimated to rank in the top five percent of a metro area's price range. Affluent buyers are increasingly drawn to markets where they can secure more space and lifestyle amenities at lower entry points than coastal powerhouses—without sacrificing access to growing finance, tech, and cultural scenes.
Which Cities Are Leading America's Luxury Housing Boom?
San Francisco topped Redfin's list, with pending luxury sales soaring nearly 46 percent from a year ago, driven in large part by the city's AI-fueled wealth boom. Nashville notched second place with a 24.5 percent jump, followed by San Diego at 22.5 percent. Those three cities were the only major markets where luxury sales grew faster than in Florida's booming high-end hubs.
Smaller markets are also gaining momentum. The report identified places like Salt Lake City, Tampa, and Naples as ones to watch, citing growing tech and finance industries, outdoor lifestyles, and, in some cases, lower costs than both traditional luxury enclaves and the newest wealth hubs. Legacy markets aren't disappearing—but a growing roster of cities is competing for wealthy homeowners and winning.
What Do Mega-Listings Like Mike Love's Tahoe Estate Reveal?
The boom's ripple effects show up in headline-grabbing listings far from traditional coasts. Beach Boys cofounder Mike Love and his wife Jacquelyne have placed their longtime Incline Village, Nevada, estate on the market for $43 million. The nearly 19,000-square-foot compound on 2.5 acres features sweeping Lake Tahoe views, a recording studio, and an ice-skating rink—amenities befitting one of rock's most enduring acts.
Love has called the affluent northeastern Tahoe enclave home for more than four decades. Jeannette Harpole of Habitat Nevada, Keller Williams Realty, holds the listing. The sale underscores how established resort and mountain communities outside marquee metros continue attracting ultra-high-end inventory. For more on trophy properties like this, browse our Luxury Real Estate & Dream Homes coverage.
What Comes Next for Luxury Real Estate Outside the Coasts?
The takeaway from Redfin's latest data is clear: America's luxury housing landscape is expanding. Wealth is no longer concentrated exclusively in a handful of coastal addresses. From AI-driven San Francisco to music-city Nashville and sun-soaked San Diego, second-tier markets are posting gains that legacy hubs once monopolized.
As affluent buyers continue prioritizing value, space, and lifestyle over prestige zip codes alone, expect more cities to join the conversation. For the full market breakdown, see the original Robb Report analysis of Redfin's findings.