Santa Barbara remains untouchable, with entry-level luxury homes approaching $9 million and demand that still outpaces Florida, New York, and Texas.
Even as Detroit takes the top spot in the Fall 2025 luxury housing rankings, there’s no touching Santa Barbara when it comes to pure price power. The coastal enclave remains the most expensive housing market in America, with top-tier homes starting at nearly $9 million—well above anything you’ll find in Florida, New York, or even Texas. Yet Detroit’s rise tells a deeper story: affordability, local demand, and economic reinvention are creating a new definition of luxury that’s less about zip code and more about value.
A New Leader in Luxury
The Detroit–Warren–Dearborn metro area has surged to No. 1 in Realtor’s Fall 2025 Luxury Housing Market Ranking, overtaking St. Louis. Detroit’s momentum stems from a unique combination of affordability, economic diversification, and cultural resurgence. For decades, the city’s luxury market lagged behind due to its industrial legacy—but today, that same manufacturing DNA is fueling a real estate renaissance rooted in adaptive reuse, new capital investment, and a wave of lifestyle-focused development.
Affordable Luxury With Real Demand
Detroit’s strength lies in its accessibility. The 90th percentile price for listings is $721,625, far below the national luxury threshold of $1.24 million. Even at the ultra-luxury level, Detroit’s 99th percentile listings average $2.84 million, roughly half the national benchmark of $5.41 million.
That gap is attracting buyers looking for real value—and they’re moving quickly. Luxury listings in Detroit now average just 57 days on market, outperforming the 78-day national average. In an environment where time kills deals, velocity like that speaks volumes.
High-End ZIP Codes, Lower Cost of Entry
Affordability doesn’t mean a lack of exclusivity. The Detroit metro still boasts elite enclaves like Birmingham (48009), where the median listing price sits at $1.47 million, and other high-end ZIP codes like 48301 and 48306, each topping the $1 million mark. The takeaway: Detroit is offering both status and value, giving buyers a legitimate alternative to the coastal norm.
New Entrants: San Diego and Hilton Head
Two fresh markets entered the top 10 this fall:
San Diego–Carlsbad, CA (No. 7), where prices are still elevated—$2.88M at the 90th percentile—but falling slightly year-over-year, creating opportunity in a lifestyle-driven market that rarely softens. Hilton Head Island–Bluffton–Beaufort, SC (No. 8), where small-business vitality and consistent pricing around $1.8 million have created a steady, resilient luxury ecosystem.
These two metros replaced Prescott, AZ, and Providence–Warwick, RI-MA, which both fell out of the top 10.
Santa Barbara Still Reigns
Located on the Gaviota Coast overlooking the ocean, El Rancho Tajiguas is a sustainable property comprising two villas, both LEED certified. Villa Della Costa, at 10,300 square feet, has five bedrooms, heated floors, swimming pool, pool cabana, movie theater, wine cellar, and guest house. The 12,000-square-foot Villa Del Mare also has five bedrooms, swimming pool, movie theater, wine cellar, and guest house. El Rancho’s 3,500 acres of grounds include active cattle rangeland, fruit orchards, and swaths of untouched landscape.
Price: $110 million
Beds/Baths: The ranch includes Villa Della Costa, which has 5 bedrooms and 11 bathrooms, and Villa Del Mare, which has 5 bedrooms and 10 bathrooms.
Square Footage: Villa Della Costa is 10,300 and Villa Del Mare is 12,000. The property is on 3,500 acres of land.
While Detroit leads in momentum, Santa Maria–Santa Barbara, CA remains the undisputed luxury benchmark. Entry-level luxury here starts at $8.95 million, and neighborhoods like Montecito (93108) continue to attract the global elite. Even as the metro slipped slightly in the rankings, its lifestyle, amenities, and natural beauty keep it in a league of its own.
A Broader Luxury Map
Beyond the top 10, metros like Atlanta, Chicago, Boulder, and Coeur d’Alene are gaining steam. The luxury map is expanding inland, reflecting a shift toward value-driven markets where lifestyle and community matter as much as square footage. It’s a sign that America’s definition of luxury is evolving—away from the coasts and toward cities that offer quality, accessibility, and authenticity.
Why It Matters
Detroit’s ascent is more than a headline—it’s a signal. The market is rewarding metros that combine livability, economic diversity, and cultural momentum with relative affordability. As affordability pressures persist in coastal markets, the smart money is following opportunity wherever it lives, and right now, that includes the Midwest.
As a developer and investor, I see this shift firsthand. The next decade of growth won’t be driven by trophy addresses—it’ll be built on regeneration, adaptive reuse, and attainable luxury that bridges lifestyle and long-term value. Detroit may not yet rival Santa Barbara’s sky-high pricing, but in terms of vision, accessibility, and momentum, it’s setting a standard every market should be watching.
Daniel Kaufman Real Estate 
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