In a notable milestone for the Texas housing market, a record number of luxury homes priced at $1 million or more were sold statewide between November 2024 and October 2025, according to newly released data from Texas Realtors. The report, published in January 2026, reveals that over 14,400 high-end properties changed hands during the 12-month period, marking a 12 percent increase compared to the previous year and totaling approximately $24.5 billion in overall sales volume. The surge highlights the continued strength of the premium segment of the residential real estate market, even as broader housing conditions reflect challenges related to affordability, interest rates, and inventory.
Luxury homes accounted for just over 4 percent of all home sales in Texas during the reporting period, yet contributed more than 17 percent of the state’s total residential sales value. This disproportion underscores the strategic importance of the luxury market for developers, real estate professionals, and investors, who increasingly view high-end properties as both stable assets and growth opportunities amid a complex market landscape.
The Dallas–Fort Worth metroplex led the state in luxury sales activity, representing roughly 38 percent of all million-dollar transactions. More than 5,400 homes in DFW crossed the million-dollar threshold, driven by continued demand from corporate executives, relocating professionals, and wealthy investors attracted by the region’s expanding economic base and lifestyle amenities. Houston followed with about 27 percent of the state’s luxury sales, boosted by strong buyer interest in upscale suburban neighborhoods, gated communities, and new-build estates within city limits. Austin accounted for approximately 19 percent of the statewide total, reaffirming its position as a magnet for tech executives and high-net-worth transplants drawn to the city’s blend of cultural appeal and investment potential.
San Antonio and smaller regional markets combined for the remaining 16 percent, reflecting a broader geographic spread of luxury home demand across the state. Even in historically lower-cost regions, demand for premium properties is rising, fueled in part by hybrid work trends, changing lifestyle priorities, and the growing availability of custom-built homes in scenic or amenity-rich areas.
The strength of the luxury segment contrasts with more uneven trends in the mid-range and entry-level housing market, where rising mortgage rates and limited supply continue to weigh on affordability. While many buyers in the broader market have been sidelined or forced to adjust expectations, the luxury segment has shown resilience, with many transactions conducted in cash or involving buyers with substantial equity. These dynamics make the upper tier of the market less vulnerable to rate fluctuations and economic headwinds.
Real estate professionals note that the premium homebuyer profile in Texas is increasingly diverse. While traditional domestic buyers remain active, recent years have also seen a rise in out-of-state buyers and international investors looking to capitalize on Texas’s pro-growth economic policies, absence of state income tax, and relatively favorable cost of living compared to other luxury markets such as New York, California, and Florida.
The report also indicated that the average time on market for luxury homes has lengthened slightly, signaling a move toward a more balanced environment after the frenzied pace of sales seen during the post-pandemic boom. However, sale-to-list price ratios remain high, and competition for well-located or uniquely designed properties continues to push prices upward in several metro areas.
Developers are responding by expanding luxury inventory, particularly in areas like North Dallas, West Austin, and The Woodlands near Houston, where demand continues to outpace supply. High-end amenities, eco-conscious construction, smart home features, and access to walkable retail and dining districts are now considered standard in many of these new luxury offerings. Meanwhile, brokers are refining marketing strategies to target affluent buyers through digital platforms, exclusive viewings, and curated lifestyle branding.
As 2026 progresses, the luxury home market in Texas is expected to remain a focal point of the real estate industry. Analysts suggest that while the broader housing market may experience slowdowns or cyclical adjustments, the premium segment is likely to maintain upward momentum, particularly in urban-adjacent areas with strong school districts, infrastructure, and lifestyle amenities.
The record-breaking sales performance also reflects a shift in how real estate is being viewed in the broader economic picture. For many buyers, high-end residential properties are not just places to live—they are strategic investments that combine lifestyle value with long-term financial upside. The continued strength of this market segment will likely influence land use planning, zoning decisions, and housing policy discussions throughout the year.
In a housing environment defined by rising costs and evolving buyer behavior, Texas’s luxury real estate market has carved out a space of relative stability and growth. Its record-setting performance over the past year reinforces the state’s position as a major destination for wealth migration and upscale development, offering key lessons for stakeholders across the national housing landscape.
