Years of rising home prices have erased a once-reliable benchmark in the U.S. housing market: In most major cities, a $1 million budget no longer buys a typical luxury home.
Among the nation’s 49 largest metropolitan areas, only five still have luxury home listings with a typical price of $1 million or less, down from eight metros just one year earlier.
“The fact that only five major metros still offer a typical luxury home for under $1 million shows just how much the high-end market has appreciated in recent years,” Redfin senior economist Yingqi Xu said.
Xu added that buyers hoping to enter the luxury market now have “very few places left” where a seven-figure budget is not required.
According to Redfin, Detroit ranks as the most affordable major U.S. metro for luxury homes, with a median price of $719,252. That is 47.7 percent below the national typical luxury-home price, which stood at an estimated $1,374,470 as of July 2026.
The remaining metros where typical luxury homes are still priced at $1 million or less are Cleveland, Ohio; Pittsburgh, Pennsylvania; Cincinnati, Ohio; and San Antonio, Texas.
Detroit’s relative affordability comes alongside a well-known cultural identity, from its thriving arts scene and Motown legacy to Detroit-style pizza and a deep base of manufacturing jobs.
“The Detroit area has a lot of beautiful, high-end homes that are affordable here, but would cost millions of dollars if they were in a major coastal metro area,” said Redfin principal agent Anne Loehr.
Detroit is the leading US metro area with the cheapest luxury housing market – most homes are listed for less than $1 million
Buddy’s Pizza is a popular restaurant that’s been serving ‘Detroit-style’ pizza since 1946
Flagging demand is one factor helping to keep prices low. In the second quarter, prices fell 1 percent year over year to around $100,000, while total home sales were down 15.8 percent in June year over year. E
Homes were also taking longer to sell, averaging 48 days on the market compared with 44 days a year earlier.
Andrew Te, CEO of real estate platform FastExpert, told Our News Outlet that price comparisons don’t tell the whole story about the Detroit housing market.
‘There are inexpensive luxury homes for sure, but that doesn’t automatically make them a bargain when compared to other factors, like the challenged resale market,’ he told us.
For local realtor Michael Perna, Detroit’s Luxury market is a tale of two cities.
Perna said there were absolutely stunning homes available in Detroit’s luxury market that ‘look very affordable’ on paper, but other unexpected costs from living in the area fall on the buyer.
That includes property taxes. According to Turbo Tax, Detroit has one of the highest tax rates in the country.
Even though luxury homes in Detroit are generally less expensive than other parts of the country, the tax burden leaves some potential buyers wary
Ohio Realtor Katie Madio said she receives inquiries from out-of-state buyers ‘on a weekly basis’
Detroit’s property taxes are among the highest in the state, approaching 3 percent.
‘A one million dollar home in Detroit can commonly come with a $20,000 to $30,000 per year tax price tag,’ Perna said. ‘That same home with a much higher sales price in the suburbs the taxes would be half.’
Two Ohio metros also landed in the most affordable ‘luxury’ housing market: Cleveland and Cincinnati.
The medium sale price for a ‘luxury’ home in the Ohio hotspots both grew year over year but comfortably hover below the $1 million mark.
In Cleveland, houses cost around $833,228, while in Cincinnati they’re about $952,523.
Ohio-based realtor Katie Madio said that the metro’s luxury market is so attractive because of Cleveland’s excellent quality of life.
‘Buyers can find beautiful architecture, larger lots, privacy, historic properties, newer construction and highly desirable communities without necessarily sacrificing access to the amenities they enjoyed in larger or more expensive metropolitan areas,’ Madio told Our News Outlet.
Cleveland, Ohio is another US city with an ‘affordable’ luxury housing with homes costing under $1 million
Just last week, she heard from buyers in California, Tennessee and Rhode Island looking to relocate to the area, all with budgets above $1 million.
Mitch Coluzzi, co-founder of real estate firm SoldFast, told Our News Outlet that Cleveland is also in a state with more buyers than sellers, which often creates bidding wars for ‘attractive properties.’
‘I see that every now and then in Cleveland Heights, a neighborhood that comes up a lot in discussions about the real estate prospects here,’ he added.
Pittsburgh is another major metro with luxury homes available for under a million. The current median luxury home sale price is around $904,202.
The Pennsylvania city has shed its rust belt image and restructured its economy around healthcare, finance, technology and manufacturing.
San Antonio rounds out the list, with the median cost for luxury homes around $968,344. The Texas city is most famous as home of the Alamo and great barbeque, although it’s also prone to flooding and other climate-related risks that make homeowners insurance cost higher than the national average.
Across the country, affordable luxury homes are rare. Fast-rising home prices pushed average luxury homes in both Indianapolis and St Louis beyond the $1 million mark.
Over the past year, high-end prices jumped 9 percent in Indianapolis and 10.9 percent in St Louis, putting the median luxury home price at about $1.01 million and $1.03 million, respectively.
Miami is one of the most expensive luxury real estate markets in the US, along with San Francisco and Anaheim
According to local realtors, the demand for Miami is still there because people ‘build their lives and businesses’ around the metro
The country’s most expensive luxury markets can see median sale prices push well past $5 million, especially in California hubs like San Francisco and Anaheim.
The median luxury sale price in Miami currently is $4,855,331.
But for some, the lifestyle that comes with coastal cities is worth the high price point.
‘What we’re seeing isn’t people questioning whether they should move to Miami,’ Realtor Miltiadis Kastanis told Our News Outlet.
‘It’s buyers being more thoughtful about where they buy and understanding the full cost of ownership.’
‘The demand is still there because Miami has become a city people choose not just for a vacation home, but to build their lives and businesses.’
But it’s not just an issue for coastal cities. Redfin chief economist Daryl Fairweather told Our News Outlet that nationwide, the luxury market is ‘slowly getting more exclusive.’
‘Luxury prices are up about 3 percent year-over-year, she said, ‘with the typical luxury home selling for around $1.1 million nationally.’
‘The number of metro areas where a luxury home sells for under $1 million has shrunk from mid-2019 to today – meaning fewer markets offer that sub-$1 million entry point into the top tier,’ she added.
