Wealth growth, changing buyer demographics and an increased focus on health and wellness are reshaping the luxury housing market, according to Sotheby’s International Realty.

The company’s 2026 Mid-Year Luxury Outlook report found that wellness-focused features and long-term livability are becoming more prominent considerations among affluent buyers, particularly in the highest-priced segments of the market.

The report draws on feedback from Sotheby’s International Realty agents involved in transactions valued at $10 million or more, along with data from organizations like the Federal Reserve, UBS, the National Association of Realtors and the Global Wellness Institute.

Among the report’s findings, roughly 38% of surveyed real estate professionals working in the $10 million-and-above market said aging in place has become a growing factor in home purchase decisions.

The report also cited projections that the global longevity market could grow from $5.3 trillion in 2023 to $8 trillion by 2030, while wellness-related real estate is expected to exceed $1.1 trillion by 2029.

“As we celebrate 50 years of Sotheby’s International Realty, this report mirrors the strength of a brand built on insight, trust, and global perspective,” said Bradley Nelson, chief marketing officer of Sotheby’s International Realty.

“This edition of Luxury Outlook reveals a housing market that consumers are actively experiencing. What stands out this year is the emergence of longevity as a defining force in luxury real estate. Homebuyers aren’t just investing in a home; they’re investing in how they want to live and age.

“At the same time, wealth at the top end continues to expand, and homebuyers are younger and more open to seeking properties in new locations. The result is a luxury property market that moves faster, feels more competitive, and requires more informed decision-making. This report helps bring clarity for both affiliated agents and the clients they serve.”

Luxury stays ahead of broader market

The report also points to continued strength in the luxury housing sector despite slower activity in the broader housing market. Researchers attributed demand in part to gains in financial markets and wealth creation among high net worth households.

According to Federal Reserve data cited in the report, the net worth of the top 1% of Americans reached $54 trillion by the third quarter of 2025. Additionally, nearly 40% of the world’s millionaires live in the U.S., and researchers project the creation of 5 million additional millionaires globally by 2029.

More than half of surveyed professionals specializing in properties priced above $10 million reported an increase in luxury buyers during the past year, while average prices rose about 5%, according to the report.

Millennials continue to account for a growing share of luxury buyers. Sixty-six percent of respondents reported an increase in millennial clients, a share that rose to 73% among professionals working in the $5 million-and-above market.

Lifestyle valued above taxes, stability

Lifestyle considerations ranked as the most frequently cited factor that influences purchase decisions, with 62% of respondents identifying it as increasingly important.

Taxes, economic stability and political stability followed.

The report also highlighted continued activity in major international markets, including New York City, San Francisco, Hong Kong and Milan, where demand for high-end properties remains steady.

Tax policy may also influence future buying activity. The report noted that the increase in the federal deduction cap for state and local taxes from $10,000 to $40,000 could encourage purchases of luxury homes in states with higher property taxes.

“The global luxury real estate market continues to endure, even as the forces shaping it evolve,” said Philip White, president and CEO of Sotheby’s International Realty. “This resilience is most evident in leading global cities, which continue to attract strong interest from the world’s most sophisticated homebuyers. Longevity is increasingly driving that interest too. It’s no longer just where folks want to live, but how they want to live as they age.

“What we are seeing in the industry is not a short-term change, but a sustained shift in how global wealth is stored, transferred, and expressed through property. It underscores a simple reality: while motivations are changing, prime real estate can be one of the most trusted ways people preserve and express wealth.”

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication.