Luxury Second-Home Market Rebounds as Ultra-Wealthy Double Down on Resort Markets

The luxury second-home market is staging a strong rebound in the first quarter of 2026, with closed sales volume in resort markets up 22% year over year through February, according to data from the Institute for Luxury Home Marketing. The recovery is concentrated at the very top of the market — properties priced above $5 million — where cash buyers dominate and mortgage rate movements have minimal impact on purchase decisions.

Aspen has been particularly active. The city recorded 14 sales above $10 million in January and February combined, compared to 8 during the same period last year. The most notable transaction was the $47.5 million sale of a ski-in/ski-out compound on Red Mountain, representing the second-highest residential sale in Pitkin County history. The buyer, represented by Joshua & Co., was a technology executive relocating their primary residence from San Francisco.

Palm Beach continues its post-pandemic elevation as America's premier luxury enclave. The island's median sale price reached $6.2 million in February, up 9% from a year earlier. Douglas Elliman agents report that demand from northeastern buyers remains robust, with New York-area families making up approximately 40% of buyers in recent transactions. The combination of Florida's tax advantages and Palm Beach's cultural amenities continues to draw high-net-worth households at a sustained pace.

Lake Tahoe has emerged as a beneficiary of renewed interest in mountain resort living. The North Shore market — particularly the Incline Village and Crystal Bay communities along the Nevada side of the lake — has seen a 31% increase in $3 million-plus sales. Nevada's absence of state income tax is a significant draw for buyers considering full-time residency in the area, and several luxury spec home projects that broke ground in 2024 are now delivering.

The rebound reflects the resilience of ultra-high-net-worth household balance sheets in an environment of strong equity markets and continued wealth accumulation at the top of the income distribution. The S&P 500's 18% gain in 2025 and continued strength in private equity distributions have put buyers who paused during the rate volatility of 2024 back into acquisition mode.

Luxury real estate brokerages are staffing up accordingly. Sotheby's International Realty and Christie's International Real Estate both reported record agent recruitment in the first quarter as established producers follow client demand into resort markets. The competition for experienced luxury agents in Aspen, Palm Beach, and Napa has pushed sign-on packages to levels that executives say rival those seen during the 2021 market peak.