T
he luxury real estate market is expected to experience significant trends in 2025, according to the Coldwell Banker Global Luxury program's 2025 Trend Report. The report highlights a growing and more balanced market, driven by affluent women leading decisions and an increased need for multi-generational living.

    A balanced market will prevail in 2025, with prices of luxury homes continuing to outpace those in the traditional real estate market. Single-family home prices are expected to grow by 7.6%, while condo prices will increase by 6.5%. This growth is attributed to North Jersey's proximity to New York City, a major hub for affluent companies.

    Gen Xers are set to become more dominant owners of luxury homes in 2025, with their numbers growing by 10% over the past five years. This demographic shift is driven by the "Silver Tsunami," where Gen Xers will inherit significant wealth from their Baby Boomer or Silent Generation parents, enabling them to invest in high-end real estate.

    As a result of this trend, there will be a growing demand for multi-generational living spaces that accommodate adult children and aging parents. Affluent women, referred to as "She-Elites," are also emerging as luxury real estate leaders, making up 54% of luxury property owners under the age of 35.

    Other trends expected in the 2025 luxury housing market include merging indoor and outdoor spaces, an increase in personalized spaces, and a shift towards seeking primary or secondary homes outside traditional business-friendly destinations like New York, London, and Paris.