Million-Dollar Home Sales Are Growing—and Affluent Buyers Are Paying in Cash

The market for million-dollar homes is expanding across the United States, but growth isn’t limited to traditional luxury hubs. The metros of Colorado Springs, CO, Durham-Chapel Hill, NC, and Seattle are also seeing significant increases in seven-figure sales, driven by distinct factors.

In Seattle, tech wealth and limited housing are driving the trend, whereas the appeal of Colorado Springs as a military hub and an influx of high-income residents are fueling its growth. Meanwhile, Durham-Chapel Hill’s tech and life sciences industries are attracting investment and boosting demand.

Unsurprisingly, California’s coast continues to draw a steady stream of affluent buyers, many of whom are paying for their homes in cash. Cities such as San Luis Obispo and Los Angeles exemplify this trend, with a high proportion of sales exceeding the million-dollar threshold.

The expansion of the $1 million-plus housing market is largely being driven by rising property values, which continue to push more homes into the luxury category.

“In some markets, particularly in high-priced California metros, $1 million isn’t necessarily a luxury price—it’s just the norm for a typical home,” says Hannah Jones, senior economic research analyst at Realtor.com®.

Nationally, there have been increases in both the number and share of such sales in more than half of the 200 largest metros in the year ending November 2024, according to the National Association of Realtors®.

And, over the past year, nearly 300,000 home sales surpassed the $1 million mark, up from 275,000 the previous year, according to Realtor.com data.

Many high-end buyers either purchase homes in cash, avoiding borrowing costs entirely, or use financing strategies that help minimize the impact of higher mortgage rates.

Experts point to a combination of rising interest rates and limited inventory as key drivers of this trend. With 30-year fixed mortgage rates hovering between 6% and 7%, many potential buyers are being priced out of homeownership.

“Million-dollar homebuyers are often on their second or third home transaction, with a significant percentage of cash down payment, allowing for greater budgetary flexibility,” says Jay K. Gupta, broker associate at Equity Colorado Real Estate.

Coastal markets lead the way

California’s coastal cities remain at the forefront of the seven-figure home boom. San Luis Obispo recorded the largest surge, with 38.6% of all home sales surpassing $1 million—a 6.5 percentage-point increase from the previous year. The Los Angeles metro area followed closely, with sales over $1 million climbing by 5.9 points, now comprising 47.7% of all transactions.

Other coastal cities, such as Seattle, also saw notable gains. The share of $1 million-plus home sales in Seattle rose by 5.5 percentage points, now representing 27% of the market.

Cash transactions remain a major factor in these markets. In Los Angeles, nearly half of purchases in this category are cash-based—a trend similarly observed in Seattle.

Luxury growth beyond California

While California leads the high-end real estate market, other metro areas across the country are also experiencing a sharp increase in sales of homes above the $1 million mark.

In Colorado Springs, 14.2% of homes sold in 2024 exceeded seven figures, reflecting a 6.3 percentage-point jump from the previous year.

“Colorado Springs is a highly livable city, consistently ranking on livability indexes. With abundant trails, open spaces, and a strong school system, it’s an attractive place to live,” says Benjamin Day, managing broker at LIV Sotheby’s International Realty in Colorado Springs.

In 2024, 12.6% of homes sold in Durham-Chapel Hill surpassed $1 million, marking a 5.5 percentage-point increase year over year.

The Triangle region, which includes Raleigh, Durham, and Chapel Hill, is a growing hub for industries such as technology, life sciences, advanced manufacturing, and clean technology. Major employers like Duke University, IBM, and Cisco Systems, alongside hundreds of biotech and research firms, are fueling innovation and job growth in the area.

“The Durham-Chapel Hill area is home to numerous colleges, universities, and medical facilities, which have driven significant migration and employment opportunities. North Carolina has historically been more affordable than many other markets, and it offers a mild climate,” says Cara Ameer, a real estate agent licensed in California and Florida with Coldwell Banker.

Meanwhile, Colorado Springs has positioned itself as a rising tech hub, ranking second among North America’s emerging technology markets. Companies such as Oracle and Hewlett Packard Enterprise have expanded their operations there, attracting high-income professionals. Over the past five years, tech wages in Colorado Springs have surged by 20%, further driving demand for luxury homes.

“The city is home to major industries, from aerospace and cybersecurity to a booming tech sector. With five military installations, a large defense industry, and even a five-diamond resort like The Broadmoor, Colorado Springs has a diverse economic foundation,” adds Day.

A resilient luxury market

The continued demand for luxury properties highlights the resilience of the high-end housing sector, even as affordability challenges persist for the broader market. Realtor.com data shows that the median national list price reached $400,500 in January 2025.

“Buyers in higher price tiers are generally better equipped to handle rising rates and tend to prioritize factors like location or home size,” adds Jones.

According to the Realtor.com 2025 Housing Forecast, existing-home sales are expected to grow by only 1.5% year over year, reaching an annual total of 4.07 million sales.

“The luxury market has been surging, and luxury buyers are largely insulated from high mortgage rates and down payment concerns. They move because they want to, and they often seek change, investment opportunities, or a new lifestyle,” says Ameer.

The growing presence of tech companies in cities like Colorado Springs is another factor expected to sustain demand for high-end properties. As these businesses continue expanding, they attract highly paid professionals willing to invest in luxury real estate—further pushing prices upward.

As home prices rise and economic factors shift, the million-dollar-plus housing market remains one of the most resilient segments of the real estate industry.

With affluent buyers continuing to drive demand, million-dollar home sales will likely remain a key indicator of market strength in 2025 and beyond, says Day.