Brookline and Newton account for 1 in 4 Massachusetts luxury homes that sold between $3 million and $4 million. iStock illustration
The luxury real estate market in Massachusetts has shown remarkable resilience and strength as we begin 2025, even as the broader national market faces challenges.
Our state has bucked the national trend of declining unit sales, with a slight improvement in the number of luxury homes sold. This can be attributed to Massachusetts’ consistently desirable environment, which includes excellent job opportunities, top-tier educational institutions and a rich historical backdrop. These factors continue to outweigh the allure of warmer climates and emerging markets.
In 2024, sales of homes up to $4 million remained robust in core markets such as Boston, Cambridge and the Wellesley/Weston area. However, we have observed some inventory accumulation for properties priced above $5 million. This indicates a healthy demand for luxury homes, particularly in the more accessible price ranges.
A closer look at the data reveals that 469 single-family properties were sold for over $3 million in Massachusetts in 2024, excluding Cape Cod, the Islands and the Berkshires. Notably, Brookline and Newton together accounted for 25.7 percent of these sales, while Wellesley and Weston combined made up 17.2 percent.
This concentration of high-value transactions in a few key areas underscores the appeal of these towns, which offer proximity to Boston’s job market and amenities.
The condominium market also showed significant activity, with 178 condos sold for over $3 million in the past year. Boston dominated this segment, with 156 sales, followed by Wellesley, Brookline, Cambridge, Weston and Swampscott. This trend highlights the strong demand for luxury living spaces in urban and suburban settings alike.
Highest-End Concentrated in Traditional Markets
When examining sales over $4 million, we see a notable drop-off, with only 189 transactions compared to the 469 sales in the $3 million to $4 million range.
Interestingly, 62.9 percent of these higher-end sales occurred in Boston, Brookline, Cambridge, Newton, Wellesley and Weston. This concentration further emphasizes the desirability of these locations for affluent buyers, with close proximity to the work opportunities and amenities of downtown Boston being a key selling point.
The luxury market’s resilience is also evident in the sales of single-family homes priced over $5 million. These transactions typically fall into two categories: waterfront properties and homes within an easy commute of Boston. This segmentation reflects the diverse preferences of luxury buyers, who seek both scenic beauty and convenience.
The 2025 Coldwell Banker Global Luxury Trend Report provides additional insights into the national luxury market, which continues to outperform the broader housing market. Single-family home prices in the luxury segment are growing at twice the rate of the overall market. This growth is driven by renewed confidence among luxury buyers, a greater selection of desirable properties and increased purchasing power.
The report also highlights a positive outlook for 2025, with over 85 percent of Coldwell Banker Global Luxury Property Specialists expressing optimism for buyers and 74 percent for sellers. Additionally, nearly half of the specialists reported an increase in first-time luxury homebuyers, signaling continued enthusiasm for luxury real estate.
One of the key drivers of this positive outlook is the increasing inventory, which is creating more opportunities for buyers and potentially unleashing pent-up demand. This trend is particularly relevant in Massachusetts, where the availability of high-quality properties continues to attract affluent buyers.
‘She-Elites’ Become Major Force
The report also identifies several emerging trends in the luxury market. Affluent women, referred to as the “She-Elites,” are becoming a dominant force, driving demand and influencing purchasing decisions.
Women with a net worth of $5 million or more now own a significant portion of luxury real estate in the U.S. and worldwide. This demographic shift is reshaping the market, with women taking the lead in both buying and selling luxury properties.
Pauline Bennett
Another notable trend is the rise of Gen X buyers, who are fueling demand for multi-generational living spaces. Gen X luxury homeownership has increased by 10 percent over the past five years, more than any other age group.
These buyers prioritize location and turn-key properties, seeking homes that offer access to experiences and scenic views. Many are also investing in second homes, reflecting their focus on diversifying investments while enhancing their lifestyles.
Luxury buyers are increasingly seeking homes designed to accommodate multigenerational living and evolving family needs. Flexible layouts, such as first-floor in-law suites and open floor plans, are highly sought after. This versatility ensures that luxury homes remain practical investments that can adapt to various life stages.
Indoor-outdoor living remains a top priority for luxury buyers, with over 60 percent of specialists ranking it as a key feature. This demand for seamless indoor-outdoor spaces reflects a growing desire for properties that offer unique experiences and long-term value.
In conclusion, the luxury real estate market in Massachusetts is thriving, driven by strong demand, desirable locations, and evolving buyer preferences. As we look ahead to 2025, the positive outlook and emerging trends highlighted in the Coldwell Banker Global Luxury Trend Report suggest that the market will continue to grow and adapt to the needs of affluent buyers.
For real estate professionals, staying attuned to these trends and understanding the unique dynamics of the luxury market will be essential for success throughout 2025.
Pauline Bennett is the Northeast regional president for Coldwell Banker Realty.
