Despite challenges, real estate rises
Despite the plethora of challenges faced over the past few years, the American economy has continued to grow, which has been an essential driver of real estate value. The total value of household real estate was at the third-highest level ever recorded in the most recent Flow of Funds data, totaling $48.1 trillion, a gain of $3.2 trillion or 7% from the prior year. Homeowner equity in real estate was near record highs at $34.7 trillion, up more than $2.8 trillion (8.8%) year over year.
The high end has outperformed the median
Because higher-end homeowners have substantial equity and are less reliant on mortgage financing, these types of properties have outperformed. Data from the National Association of Realtors® suggests that the $1 million-plus category has been the fastest-growing (or least-declining) sales segment for 21 months straight, and sales in this segment now account for 7.6% of the market compared with 5% in February 2023, just before the streak of outperformance began.
And demand remains relatively steady
In listing data, we see similar signs of the growing importance of high-end homes and a relatively healthier interest from high-end-home buyers. In contrast with sales trends, listings priced above $1 million shrank as a share of for-sale properties in early 2025. They comprise an average of 12.8% of all for-sale properties year to date in 2025, slightly below the 13.6% share seen at this time in 2024.
