The U.S. housing market is splitting along wealth lines, with ultra-high-net-worth buyers increasingly prioritizing longevity and wellness in property decisions, while entry-level affordability reaches a new crisis point. Two reports published Monday illustrate the divergence.
Sotheby's International Realty released its 2026 Mid-Year Luxury Outlook, surveying agents who work exclusively in the $10 million-and-above segment globally. Nearly 38% of those professionals reported that health-centered design and wellness infrastructure are now growing factors in purchase decisions. The global longevity market, per UBS Global Wealth Management data cited in the report, is projected to expand from $5.3 trillion in 2023 to $8 trillion by 2030.
Wellness real estate has more than doubled in size over five years and is projected to surpass $1.1 trillion by 2029. Lifestyle ranked as the most important purchase driver among surveyed agents at 62%, outpacing taxes (60%), economic stability (53%), and political stability (49%). The wealth context is significant: Federal Reserve data shows the net worth of the top 1% of Americans reached $54 trillion by the third quarter of 2025, while the S&P 500 rose approximately 80% between early 2023 and 2025.
Millennial buyers are also reshaping the luxury market. Some 66% of agents reported an increase in that cohort at the $10 million-plus level, rising to 73% among those in the $5 million-and-above segment, driven by earned wealth and accelerating intergenerational transfers. Nearly 40% of the world's millionaires now reside in the U.S., with researchers projecting five million additional millionaires globally by 2029.
For advisors working with wealthy clients, these trends underscore the importance of integrating real estate into broader estate and longevity planning. As noted in a recent Bernstein survey, UHNW families are increasingly prioritizing estate planning amid geopolitical anxiety, and property decisions are becoming a key component of that strategy.
Meanwhile, a Zillow report also published Monday highlights the stark contrast at the entry level. A record 242 U.S. cities now have starter homes valued at $1 million or more, nearly triple the 80 cities that met that threshold in February 2020. California accounts for 105 of those cities. New York and New Jersey added 15 cities between them in the past year alone, with New York's total reaching 41 and New Jersey's climbing to 26 from just one before the pandemic.
Nationally, the typical starter home is valued at $198,649, up 1.7% from a year ago. However, that figure masks severe regional disparities. The New York City metro leads all metros with 63 cities where entry-level pricing crosses the million-dollar threshold. Zillow senior economist Kara Ng noted that the Northeast's housing shortage remains unresolved, while Sun Belt markets have seen price growth moderate due to new supply.
There are modest signs of improvement for buyers: the typical purchaser now reaches break-even relative to renting after roughly six years, down from more than eight years in late 2023. But 26 states now have at least one city with million-dollar starter homes, up from nine before 2020. The pandemic price reset has proven durable, and the affordability crisis continues to spread.
For advisors, the two reports together show a market operating on entirely separate tracks. At the top, record wealth accumulation and evolving priorities around longevity drive demand that shows little sign of softening. At the entry level, the legacy of the pandemic continues to push homeownership beyond reach in a growing number of communities. Advisors may also want to consider how the $84 trillion wealth transfer is influencing real estate decisions across generations.
