The luxury housing market is showing a different kind of resilience than the broader housing sector, according to insights from The Trend Report 2026. While rising mortgage rates and affordability pressures have slowed activity across much of the market, the top tier continues to move under a distinct set of dynamics driven by high-net-worth buyers, wealth migration and long-term investment strategies. Michael Altneu, vice president of global luxury at Coldwell Banker, leads strategy and insights for the company’s luxury division and helps shape its annual luxury market report. In this conversation, he explains why luxury real estate is increasingly moving on a different cycle, how wealth migration and generational wealth transfers are reshaping demand, and why personalization and long-term wealth strategy are becoming central to luxury buying decisions.
HousingWire: “Resilience” is the headline of this report. What does resilience look like on the ground right now in luxury, and what are agents misreading when they assume luxury will move like the broader market?
Michael Altneu: The word resilience really came from the data. When we isolated the top 10% of the housing market, luxury growth in 2025 almost doubled the pace of the traditional market. That was a defining moment because it showed luxury pulling away from the broader housing cycle more than we’ve seen historically.
One reason is that ultra-high-net-worth and very-high-net-worth buyers operate differently. They are still price-conscious, but they’re less sensitive to interest rates and have more flexibility in how they structure purchases or move capital. Another factor is how real estate fits into wealth strategy. For many high-net-worth individuals, luxury real estate is a cornerstone of their portfolio rather than a speculative purchase. That said, luxury transactions are not easy. These deals often involve far more complexity than traditional transactions. Family offices, wealth managers, attorneys and international considerations can all be involved. Pricing and marketing still matter, and when properties are positioned correctly, they trade appropriately.
Resilience also varies by market. Some areas have extremely limited inventory where homes sell far above asking, while others require more negotiation and strategic pricing. The assumption that luxury operates independently from the broader economy is a misconception, but the dynamics are different.
HW: The report suggests luxury real estate is shifting from a speculative asset to a cornerstone of identity and long-term wealth preservation. What signals are you seeing that buyers are thinking more strategically?
MA: A big part of that shift comes from lifestyle and personalization. After the pandemic, homes became much more central to how people live and work. Luxury buyers want properties that reflect their personal lifestyle and can support long-term family use. We’re also seeing a generational mindset. Many purchases are intended to become legacy assets that can be passed down. That changes how buyers evaluate properties—they’re thinking about decades, not just the next market cycle.
Inventory constraints have also pushed buyers to become more strategic. In some markets, turnkey homes simply don’t exist, so buyers are willing to renovate or even build in order to create exactly what they want.
For agents, the advisory role becomes more important. Some buyers are looking for investment properties or secondary homes, while others are making generational purchases. Understanding those goals is critical to guiding them effectively.
HW: Wealth migration and the concept of “resilient wealth havens” are reshaping the luxury map. What framework are buyers using to choose where to invest?
MA: We looked at several metrics to identify resilient markets—growth in luxury sales, price changes, total transactions and new inventory. Markets that showed consistent balance across those indicators stood out. But buyers are also evaluating a range of personal factors, including tax structures, lifestyle preferences, climate considerations, security and mobility. Flexibility and space have become especially important. Consumer behavior data also supports that shift. Buyers are increasingly searching for larger homes with more space and additional amenities.
For agents, preparation means understanding migration patterns and the demographics entering their markets. Luxury buyers often think globally, and many already own multiple properties. The ability to advise clients across markets is becoming increasingly valuable.
HW: The report highlights a major wealth transfer underway, with Gen X first in line and millennials inheriting the larger share over time. What’s the most overlooked implication for luxury real estate?
MA: The biggest gap is understanding the difference between data and real-time market knowledge. Data shows what sold and for how much, but it doesn’t explain why. In the luxury market, those details matter. Understanding why one property sold and another didn’t often comes down to information that only comes from being active in the market and speaking with participants directly.
Another overlooked factor is the number of stakeholders involved in high-value transactions. As price points rise, deals often involve family offices, advisors, attorneys and multiple family members. Agents who want to position themselves early with heirs need to maintain relationships beyond the transaction. Being a trusted resource and continuing the conversation after a deal closes is what builds long-term trust.
HW: Your team suggests “living large” may be replacing the quiet-luxury aesthetic. What does that look like in 2026?
MA: The data shows a clear shift toward larger homes with more bedrooms, bathrooms and overall square footage. But “living large” is also about the opportunity to create something unique. In some cases, buyers are paying premiums for properties that aren’t even fully built yet because the location and potential allow them to design something highly personalized.
Quiet luxury focused on simplicity and restraint. What we’re starting to see now is more expression—larger spaces, more amenities and properties designed around lifestyle experiences. Of course, every market is different. In areas with extremely tight inventory, buyers may simply pay a premium for whatever becomes available.
HW: When does a renovation-ready luxury property become a smart strategy rather than a compromise?
MA: It becomes the right strategy when the opportunity doesn’t exist or when personalization is the goal. At the highest end of the market, buyers often have very specific non-negotiables—certain streets, locations or lifestyle features. If those properties don’t exist, building or renovating becomes the only way to create them. These projects require patience and resources, but they allow buyers to start with a blank canvas and create exactly what they want.
From an advisory perspective, agents need to understand the client’s timeline and long-term objectives. These projects can take years, but the result is often a highly personalized asset that becomes both a home and a lasting part of a family’s legacy.
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