Luxury can mean different things to different people. One man’s trash is another man’s treasure, as they say. But while that’s certainly true, defining luxury in the housing market can be a bit more straightforward. For example, a recent analysis from the National Association of Realtors’ consumer website defines it by share of the most expensive homes. In other words, the top 10 percent of the most expensive homes in the nation could reasonably be considered luxury homes and, these days, $1 million won’t get you there. In fact, the entry-level luxury home in today’s market starts at $1.3 million. For comparison, the entry-level luxury home in 2016 was just $796,922. Danielle Hale, the website’s chief economist, says times have changed. “While a million-dollar home still represents an important benchmark, it’s not the luxury market that it once was nationwide,” Hale said. “With or without a seven-figure price tag, luxury is often about exclusivity and relative standing in a local market. In many areas, a high-end home can rise many multiples above the area’s typical home price.” (source)
