A balanced market, growing demand for indoor-outdoor spaces, affluent women leading decisions in the market and an increased need for multi-generational living are among the expected trends for luxury real estate in 2025.

This is according to the Coldwell Banker Global Luxury program, which recently released its 2025 Trend Report. It breaks down what experts expect to see from the nation's luxury real estate market this year, including things like spending preferences, emerging trends and homebuyer demographics.

The topics highlighted in the report are based on survey responses from Coldwell Banker's Luxury Property Specialists, as well as data compiled by the Institute for Luxury Home Marketing — ranging from Nov. 1, 2022, to Oct. 30, 2024 — for the top 10% of 120 markets across the country. Wealth-X and Barton Consulting also collaborated on the report.

Here are the biggest trends highlighted in the report that experts are forecasting in the 2025 luxury real estate market:

A growing and more balanced luxury real estate market

Prices of homes in the nation's luxury real estate market are generally expected to continue growing at a rate that outpaces that of the traditional real estate market in 2025.

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The annual price of single-family homes in the luxury real estate market grew by 7.6%, compared with 3% in the traditional real estate market, the report says. Similarly, the prices of luxury condos increased by 6.5% while the prices of traditional condos increased by 3%.

Joshua Baris, a sales associate with Coldwell Banker Realty's Global Luxury Division based in Fort Lee, said the difference in price increases in the luxury market and the traditional market in our area can be credited to North Jersey's proximity to New York City.

There is already a lot of demand for homes in North Jersey's traditional real estate market because of how close it is to the city, but there is even more so in the luxury market from buyers who have ties to some of the city's most affluent companies.

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"One thing creating the increase in prices, especially in the luxury marketplace, is proximity to New York City. That's always a huge plus," Baris said. "Being in close proximity to such a predominant location for some of the wealthiest companies in the world definitely helps."

Despite this rise in prices, Coldwell Banker's Luxury Property Specialists are anticipating that lower mortgage rates, higher housing inventory and overall improved market conditions will result in a more balanced market for both buyers and sellers.

The report states that after the luxury market's sales ratio percentage for single-family homes was 22.3% in 2023, representing a seller's market, it had moved to 19.4% in 2024, representing a balanced market. This is expected to continue into 2025, the report says.

Gen X dominating the marketm more demand for multi-generational living

Gen X — describing those 44 to 59 years old — are expected to steadily become more dominant owners of luxury homes in 2025.

The report says the number of Gen X individuals who own luxury homes has grown by 10% over the past five years, outpacing all other age groups. That includes baby boomers, who currently hold more than 50% of the market share.

"Many Gen Xers have already invested in real estate, but are set to be the first beneficiaries of the 'Silver Tsunami' (or the 'Great Wealth Transfer') as they stand to inherit significant wealth from their Baby Boomer or Silent Generation parents," the report reads. "This could greatly enhance their financial capacity to invest in high-end real estate, making them an even more influential force in luxury real estate in the years to follow."

With this spike in luxury homeownership among Gen Xers, the group is also responsible for leading the trend of a growing demand for multi-generational living in this market. Baris said this is because the generation is prioritizing homes with more space and less required maintenance to accommodate their adult children and their aging parents and for themselves to grow into as they age themselves.

"They're saying, 'We don't need such a big house, but let's go ahead and buy a newer home of this caliber or something that's more updated or even larger so we can bring our children and grandchildren in with us so that we can be taken care of as we get older,'" Baris said. "I'm seeing a lot of the dynamic of a multi-generational family where they're starting to bring the wealth from the empty nesters down to the Gen Xers."

Affluent women, or "She-Elites," emerging as luxury real estate leaders

Referred to as "She-Elites" in the report, affluent women are expected to continue to emerge as luxury real estate leaders in 2025.

While men are said to dominate luxury homeownership in older age groups — 59% of men ages 35 to 64 — women under 35 years old make up 54% of luxury property owners, the report said. It also said women with a net worth of $5 million or more own about 15.2% of the nation's luxury real estate.

Baris said that although he thinks women have always played a role in homeownership and real estate decisions, he believes their role has grown as more women have become the family breadwinner and taken over more elite work roles.

In addition to this, the report credits this trend as likely being a cause of higher singlehood rates among younger generations compared with older generations. That has resulted in higher homeownership rates among single women, especially in luxury real estate.

“We are seeing an extraordinary evolution in home design that reflects the changing dynamic of luxury real estate," said Jade Mills, president of Jade Mills Estates and the international ambassador for Coldwell Banker Global Luxury. "Women, especially, are powerful decision-makers that are making critical choices about where and how they live."

Other luxury housing trends for 2025

Other trends expected for the 2025 luxury housing market, as outline in Coldwell Banker's 2025 Trend Report, including merging the indoors with the outdoors; an increase in personalized spaces; and seeking primary or secondary homes outside traditional business-friendly luxury destinations like New York, London and Paris.

"The luxury real estate market has proven its resilience, even amidst broader market fluctuations, and we are confident that 2025 will see continued consumer optimism," said Michael Altneu, vice president for Coldwell Banker Global Luxury. "For high-net-worth individuals, real estate remains a constant necessity, and their desire for exceptional properties with unique designs and premium amenities is stronger than ever. With increased optimism and a shift in priorities, we anticipate a more dynamic year ahead."

Maddie McGay is the real estate reporter for NorthJersey.com and The Record, covering all things worth celebrating about living in North Jersey. Find her on Instagram @maddiemcgay, on X @maddiemcgayy, and sign up for her North Jersey Living newsletter. Do you have a tip, trend or terrific house she should know about? Email her at [email protected].