The national threshold for luxury—defined as the top 10% of home prices—now sits at approximately $1.28 million, up from roughly $1 million before the pandemic. However, this national average masks a fragmented reality. In markets like Huntsville, Alabama, and Lincoln, Nebraska, a million dollars buys a premium, 4,000-square-foot home. In contrast, that same budget in Los Angeles or Manhattan covers only a fraction of the market, proving that luxury is a local percentile rather than a static price point.

Realtor.com® categorizes these disparate markets into seven distinct levels. At the base, regional hubs feature luxury entry points starting below $1 million. As the scale climbs toward Level 7, the market shifts into elite territory, such as Fisher Island, Florida, or Aspen, Colorado, where the 90th percentile of listings begins at nearly $25 million. This segmentation highlights how land scarcity, local economic drivers, and geographic constraints dictate the cost of living at the top tier. As Anthony Smith, Senior Economist at Realtor.com®, noted, the million-dollar benchmark was never a universal standard, and current data illustrates a landscape where the entry point to high-end living stretches across vastly different financial realities.