Ultra-High-End US Homes Break Away: $10M+ Sales Hit $38.6B in 2025

Ultra-luxury real estate USA is moving to its own beat

If you're watching the real estate USA market, the ultra-luxury corner is running hot while most buyers sit out. According to Compass, transactions for homes priced at $10 million and above vaulted to 2,261 deals totaling $38.63 billion in 2025 — a pattern that looks less like routine housing demand and more like capital allocation by newly liquid fortunes.

The contrast is striking: for the average buyer, housing stayed sluggish in 2025; for the ultra-wealthy, the rules of the road changed. In this report we unpack where the money flowed, why it's flowing, what high-net-worth buyers are buying, and what this means for investors and prospective buyers who want exposure to trophy properties.

The headline numbers: what Compass found

Compass's dataset makes one thing plain: the top tier of the market has its own drivers. Key figures from the report:

• 2,261 transactions priced at $10 million or more in 2025
• Aggregate sales volume of $38.63 billion for those transactions
• Manhattan topped the list with over $7.5 billion in ultra-luxury sales, an almost 30% year-over-year increase
• Greater Los Angeles saw transactions rise more than 50%, with sales volume up 61%
• Emerging ultra-luxury activity in markets such as Houston and Scottsdale: Houston's $10M+ deals rose 900% since 2019; Scottsdale recorded 13 such sales in 2025 and has 75+ ultra-luxury homes under construction

These are not small moves. They signal a reallocation of capital into residential property that functions as both lifestyle and store of wealth.

Where the growth concentrated: cities and micro-markets

Ultra-luxury demand is not only clustering where it always has been — New York and Los Angeles — it is spreading to places that previously logged few or no nine-figure homes.

• New York (Manhattan): >$7.5 billion in $10M+ sales, nearly 30% YoY growth. The market weathered questions about the city's long-term appeal and still drew domestic and international buyers.

• Greater Los Angeles: Transactions rose 50%+; volume up 61% despite local mansion taxes and last January's wildfires creating uncertainty.

• South Florida (Palm Beach and Miami): Continued migration of capital and family offices sustained strong ultra-luxury demand.

• Sun Belt expansion: San Diego, Dallas, Houston, Scottsdale and others are recording year-over-year increases. Houston moved from one $10M+ sale in 2019 to double-digit deals in 2025; Scottsdale had 0 such deals before 2020 and 13 in 2025.

Why the spread matters: luxury buyers are choosing more than prestige — they are choosing tax regimes, privacy, space, climate preferences and jurisdictions that fit family office strategies. That makes this market geographically fluid.

Why the $10M-plus market diverged from the broader housing market

We see three structural drivers separating the ultra-luxury segment from mainstream housing:

• Liquidity events and equity gains: The Compass report connects activity to historic stock market gains and large liquidity events. When founders, investors or corporate insiders realize gains, some of that capital moves into hard assets, including trophy homes.

• Low financing dependence: Many buyers at this price point are not mortgage-dependent. That removes interest-rate sensitivity as the primary constraint; buyers are more influenced by where they want to place capital and live.

• Wealth creation geography: New wealth hubs tied to technology, finance and private equity are changing where buyers look. That explains the growth in nontraditional ultra-luxury markets.

These drivers mean $10M-plus real estate behaves more like a high-net-worth asset class than a conventional housing sector.

What ultra-luxury buyers are buying (and why)

From the report and market signals, buyer preferences are clear. Purchase decisions center on utility as a residence and a capital vehicle.

Top buyer priorities:

• Privacy and acreage — large lots and estate configurations that give separation from neighbors
• Space and amenities — multiple suites, staff quarters, wellness areas and dedicated leisure facilities
• Tax advantages — search for jurisdictions with favorable estate and income tax rules
• Security — high-end surveillance, gated compounds, and hardened perimeters
• Wellness features — integrated HVAC, air filtration, fitness and spa provisions

These preferences steer buyers toward properties that can perform as both long-term homes and stable repositories for capital.

Investment logic: is a $10M+ home a buy or a parking place for wealth?

We have to be frank: ultra-luxury homes frequently function as both lifestyle assets and balance-sheet strategies.

From an investment viewpoint, consider these points:

• Liquidity and holding period: Trophy homes are illiquid relative to stocks. Sales can take months or years and pricing is more subjective. Expect extended holding periods.

• Carrying costs: Taxes, insurance, maintenance and staff raise ongoing costs materially; that affects net returns.

• Market depth: While $10M+ markets expanded, they remain small relative to mainstream housing, so price discovery is noisier.

• Diversification benefit: For family offices and individuals with concentrated equity positions, luxury real estate offers diversification away from public markets.

• Geo-arbitrage: Buyers use location choice to optimize tax exposure and lifestyle; that can create pockets of oversupply if multiple high-end developments complete simultaneously.

In short, these properties are often used to park capital after major liquidity events. They are seldom purchased with the expectation of quick flips.

Risks and headwinds for ultra-luxury real estate investors

This segment is booming but not risk-free. Buyers and advisors should weigh these downsides:

• Concentration risk: Buyers who convert large portions of a concentrated equity position into real estate trade one concentration for another unless they diversify holdings.

• Local politics and taxes: Regions can impose new taxes on high-value property or adjust rates; Los Angeles' mansion tax is an example of a jurisdiction-level cost that did not stem demand in 2025 but raises costs.

• Environmental exposure: Natural events — wildfires in California — create insurance and underwriting pressure and can affect buyer sentiment.

• Market fickleness: Ultra-luxury markets can see rapid sentiment shifts; a high-profile legal issue or global market shock can affect high-end demand.

• Illiquidity of upgrades: High-end custom improvements do not always raise resale value proportionally; buyers must manage renovation budgets with care.

Recognizing these risks is the first step to making a measured acquisition.

Practical strategies for buyers and investors

If you're considering buying or investing in $10M-plus real estate in the USA, here are practical steps based on market behavior in 2025:

• Treat the purchase as capital allocation. Establish what portion of your net worth you want in property versus other asset classes.

• Use specialized advisors. At this price point, estate attorneys, tax advisors, security consultants and high-end brokers matter as much as architects.

• Focus on liquidity planning.