Nantucket Tops List of Luxury Housing Markets with Median Price Over $4 Million

Nantucket, Massachusetts, a small island with approximately 14,000 year-round residents, has been identified as having the most expensive luxury housing market in the U.S., with entry-level prices starting at $1 million. A new report by Realtor.com indicates that nearly all active listings on Nantucket are priced at $1 million or higher, boasting a median listing price of $4.08 million. The island averages 138 million-dollar listings annually.

Vineyard Haven, located on the neighboring Martha's Vineyard, ranks second, with 90% of its active listings priced above $1 million and a median listing price of $2.4 million. Jackson, Wyoming, follows with the third-highest median price at $1.75 million.

Realtor.com's analysis identified 13 U.S. housing markets where at least half of active listings exceed $1 million, specifically focusing on 'pure luxury' markets rather than those with generally high regional housing costs. Anthony Smith, a senior economist at Realtor.com, explained that these markets are often characterized by scarcity.

Smith cited Nantucket and Vineyard Haven as prime examples, being island locations with limited land and strict building and preservation codes, which drive up prices for available properties. This scarcity principle also applies to non-coastal areas like Jackson, where a significant portion of land is designated for conservation, with only 3% being privately owned in Jackson Hole.

While five of the identified luxury hubs are in California, others are geographically diverse, including Kapaa, Hawaii, and Hailey, Idaho. Petoskey, Michigan, is noted as a notable inclusion, with 53% of its active listings over $1 million. Smith highlighted that Petoskey offers desirable features for affluent buyers, such as waterfront views on Little Traverse Bay and ski access, with a median listing price of $1.1 million, making it one of the more affordable options on the list. The ultra-luxury segment in Petoskey begins just under $8 million, while in Rifle, Colorado, it starts at nearly $59.2 million.

Despite high-income consumer spending in other sectors like travel, the luxury housing market is experiencing softness, mirroring trends in the overall housing market. Nationally, the luxury threshold (the 90th percentile of home prices) was $1.25 million in March, a 2.9% decrease year-over-year. The overall median home price also saw a 2.2% annual decline. However, prices across the housing spectrum are showing signs of firming up as spring approaches, with the luxury threshold increasing by 3.7% and the overall market rising by 3% from February.