The luxury goods market is poised to witness steady growth this year, with multiple factors propelling the market towards a fruitful and profitable 2026.
While the overall market slumped in 2025, the luxury sector continued to perform well and is poised to do well again in 2026, according to Sotheby’s International Realty’s 2026 Luxury Outlook released Wednesday.
Significant shifts in generational wealth, a surge in foreign buying activity in the U.S. and rising luxury home price thresholds are all propelling the luxury home market toward a fruitful new year, the report said.
Bradley Nelson | Sotheby’s International Realty
“Luxury Outlook’s continued purpose is to help our clients and the broader market navigate rapidly changing conditions through data-driven, expert insights from our global network of real estate advisors,” said Bradley Nelson, chief marketing officer of Sotheby’s International Realty, in a press statement. “The latest edition continues to provide strategic intelligence and a global perspective that enables clients to make informed and confident decisions.
“Looking ahead to 2026, inventory levels are almost back to pre-pandemic norms,” he continued. “This new balance in the market indicates a healthier picture and offers a wider range of opportunities for buyers.”
The report was compiled with insights from Sotheby’s International Realty agents around the world and data from JPMorgan Private Bank, PricewaterhouseCoopers, Cerulli Associates, Henley & Partners, UBS, and the National Association of Realtors (NAR).
Philip White | Sotheby’s International Realty
“Building on our strong foundation for 2025, the luxury market is experiencing increased inventory, increased international homebuyer activity, and an increasing proportion of all-cash sales, especially in luxury,” Philip White, president and CEO of Sotheby’s International Realty, said in a statement. “We expect global sales to strengthen as luxury real estate buyers, the strongest segment of the market, are less geographically constrained. We are committed to providing the right guidance for each of our clients’ real estate portfolios.”
Below are some of the trends and future indicators that luxury agents may want to keep an eye on in 2026.
wealth transfer
Intergenerational wealth transfers in developed countries will reach an estimated $6 trillion in 2025, according to The Economist, and younger generations are prepared to invest more of their inherited wealth in luxury real estate in the coming years, a Sotheby’s International Realty report suggested.
According to a report by Cerulli Associates and CNBC (using data from the Federal Reserve Board), it is estimated that approximately $124 trillion will be transferred from the silent generation and baby boomers to younger generations by 2028, of which approximately $25 trillion will consist of real estate.
early bird
As the market continues to change, a Sotheby’s International Realty report suggested homebuyers and sellers would benefit most if they act now and secure what the company calls a “first-mover advantage” to get the best deal. Luxury buyers also benefit from operating in a more balanced market than in recent years, with the inventory of homes priced over $1 million reaching its highest level since 2020.
Cryptocurrency trends
The report found that cryptocurrencies play a major role in purchasing luxury homes, particularly in Dubai, New York, and California. Alternative assets could also become more widely used if federal regulations are changed to allow cryptocurrencies to count toward mortgage qualifications, as per the Federal Housing Finance Agency’s request to Fannie Mae and Freddie Mac in June 2025.
international movement
Despite global uncertainty in 2025, foreign buyers continued to invest in US real estate. International home transactions in the U.S. by foreign buyers increased 44% from April 2024 to March 2025, according to a NAR report cited in Sotheby’s International Realty’s 2026 Luxury Outlook.
With President Trump’s push for a golden visa for foreign nationals living in the U.S., that number could rise even further. According to NAR, Florida had the most transactions with foreign buyers, followed by California, Texas and New York.
“We expect to see more Chinese homebuyers in the U.S. as the economy expands and there are more billionaires and billionaires in the U.S. who want to invest their money here,” NAR chief economist Lawrence Yun said in a Sotheby’s International Realty report. “India’s economy is also growing, so more investors may come from India.”
Desired features
As always, luxury home buyers remain very concerned about security, with 81 percent of Sotheby’s International Realty agents saying security and privacy are their clients’ top concerns. As such, amenities such as gated properties, surveillance cameras and panic rooms will become increasingly common, notes the 2026 Luxury Outlook.
Luxury homebuyers also continue to prioritize lifestyle factors, seeking homes with established communities and wellness amenities such as golf and ski clubs. Branded residences continue to be popular for their name recognition, concierge services, and amenities.
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