This year, Zonda’s list focuses on wealth and the high-end market
NEWPORT BEACH, Calif., Jan. 7, 2025 /PRNewswire/ — Zonda is calling for more supply, a modest improvement in sales, and a complicated mortgage market in 2025. Some of the housing market challenges from 2024, however, will persist, led by affordability constraints given high home prices and mortgage rates.
In 2025, Zonda chose to rank the top markets for high-end buyers.
“Why focus on the high-end? Simply put, high-end buyers are among the strongest today,” said Ali Wolf, chief economist at Zonda. “Our national Zonda Market Ranking shows the high-end market overperformed for the whole of 2024 and is poised to shape the 2025 housing market.”
The strength in the high-end market can be attributed to a few main factors:
- Luxury buyers are the least challenged by interest rates
- Wealth accumulation from a strong stock market and home price appreciation
- A solid labor market with consistent wage growth
In the last four years, Zonda’s top markets have reflected different market conditions:
Zonda’s resulting top 10 list of markets for high-end buyers is comprised of the following:
10. Los Angeles/Orange County, California
Despite experiencing net negative migration, Zonda’s annual Millennial survey shows that if money were no object, LA, OC, and SD were the top three preferred places to live.
- Pros: One of the best climates in the country; abundance of things to do; access to beaches and local mountains; rich in diversity
- Cons: High cost of living; natural disaster risk; wide income disparity; high taxes; pollution; congestion
9. Boston, Massachusetts
Renowned as a hub for innovation and entrepreneurship, the city has consistently ranked as the nation’s top market for life sciences and life sciences talent, according to CBRE.
- Pros: Rich in history and culture; a big sports town; an extensive and efficient public transportation system
- Cons: Densely populated; harsh winters; strict zoning laws and regulatory requirements, some of which are intended to preserve the city’s character
8. Las Vegas, Nevada
Once predominantly reliant on the leisure and hospitality industry, Las Vegas has diversified its local economy, with high-income jobs growing by 7.9% since 2019.
- Pros: Tax haven; world-class entertainment, nightlife, and restaurants; mild winters; sports teams; an international airport; proximity to outdoor recreation
- Cons: Extreme summer heat; tight housing market; lack of green spaces compared to other cities; higher-than-average crime rates in some areas; crowds and congestion
7. Charlotte, North Carolina
Mild weather, four seasons, access to the Blue Ridge Mountains and the Carolina coastline, and employment opportunities place Charlotte as a migration magnet.
- Pros: Affordable coastal city; diverse and historic neighborhoods, a bustling urban center, and quiet suburbs; great airport connectivity
- Cons: Rapid growth has contributed to traffic congestion and urban sprawl; limited public transportation options; hot and humid summer
6. Columbia, South Carolina
With a lower cost of living than the national average and relative housing affordability, Columbia attracts young professionals, families, and retirees alike.
- Pros: Centrally located with easy access to the mountains and coast; mild winters; plenty of activities for outdoor enthusiasts
- Cons: Hot and humid summers; limited public transport; less amenities and entertainment options; some hurricane and tropical storms; relatively small
5. Raleigh, North Carolina
A thriving labor market that benefits from employment in tech, particularly in the Research Triangle, along with healthcare, life sciences, and education.
- Pros: Strong economy; proximity to mountains and the ocean; culture; better affordability than other large markets; relatively good weather
- Cons: Rapid growth has caused increased traffic congestion, infrastructure challenges, and crowded schools; lack of public transportation; has become more expensive
4. Seattle, Washington
The city is emerging as a hub for artificial intelligence, the next frontier for big tech companies—which will support Seattle’s appeal to high-wage tech workers.
- Pros: Among highest GDP/capita in the world; more white-collar workers (68.5%) compared to nationwide (62.3%); gateway city/international appeal; outdoor lifestyle
- Cons: Slower than expected population growth and an aging population; growing unhoused population; less economic diversity than some other large markets
3. Indianapolis, Indiana
Indianapolis wasn’t a huge population magnet before the pandemic, but it became a net migration winner once people had more flexibility in where and how they worked.
- Pros: Healthy, diverse economy in advanced manufacturing, life sciences, IT, and agribusiness; low development costs and limited regulation; land availability
- Cons: Among our top 10 markets, has the lowest rate of home price appreciation from 2019; doesn’t get as much of the buzz as the Sunbelt markets; cold weather
2. Nashville, Tennessee
The metro has also seen a surge in corporate relocations, driven by its favorable tax environment, relatively low cost of living, and state business incentives.
- Pros: Has become a boomtown; rich in culture and entertainment amenities; capital of country music; great outdoor amenities
- Cons: Tight land market with topography issues for new home construction; much less affordable relative to history; hot, muggy summers and cold, wet winters
1. Charleston, South Carolina
Charleston has grown in prominence and preference over the past few years, significantly overperforming for both overall new home sales and sales in the high-end segment.
- Pros: Diversified neighborhoods; miles of coastline; waterfront parks and picturesque marshes; mild climate
- Cons: Limited land and strict development restrictions; less diversified economy than larger cities; seasonal tourism crowds; hurricanes and tropical storms; relatively small
The full report, including data and analysis, will be published in the February issue of Builder Magazine. Sign-up for updates.
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