The idea of a luxury is different for everyone. While some may view it as extravagant goods and high-end services, others see it as occasional splurges, unique experiences and good health.

But in real estate, luxury typically has just one definition: Elaborate homes that are oh so expensive. And what was considered expensive has drastically changed over the last 10 years.

Realtor.com's recent What Is Luxury report found that the threshold for what is considered a luxury home was $796,622 in 2016. And nationally, a $1 million home listing was just below the top 5% of homes during this top, and among the top 10% of homes before the pandemic.

Now in 2025, the threshold for a luxury home has grown by more than 60% to $1.3 million, marking the top 10% most expensive homes nationwide, accor

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