Farewell my lovely. Why boomers are selling their luxe homes - Mansion realestate.com.au
Holiday market seeks new frontiers
The luxury vacation home market in the US remains one of the strongest and most resilient segments of residential real estate. While second homes represent only a small share of total housing activity, they carry an outsized influence on pricing trends, discretionary spending, and broader perceptions of wealth and lifestyle migration.
Over the past five years, demand for premier vacation properties has surged as affluent buyers place a greater premium on privacy, flexibility, and experiential living. Even in the face of elevated interest rates and economic uncertainty, this segment continues to perform, largely because many buyers are paying cash or are far less rate sensitive than the typical homeowner.
That demand, however, is not spread evenly across the country. The market has become increasingly stratified, with a clear hierarchy of destinations.
At the top are the established legacy markets that continue to command global attention: Palm Beach, The Hamptons, Miami, Aspen, Naples and Martha’s Vineyard.
These markets benefit from prestige, limited inventory, and deep pools of domestic and international wealth. Just below them is a rising second tier of luxury destinations where lifestyle appeal remains high but pricing is often more approachable. Park City, Scottsdale, Kiawah Island, North Fork of Long Island and Telluride are all benefiting as buyers expand their search for both lifestyle and value.
Not surprisingly, that pecking order is reflected in pricing. In The Hamptons, median home prices have climbed to roughly $US2.4m, while the super-luxury tier sits above $11m.
Aspen continues to post median pricing near $3.4m, and Palm Beach is approximately $2.7m. Yet median prices tell only part of the story. Trophy enclaves within these markets continue to reset records, particularly for oceanfront estates, ski-in/ski-out compounds, and prime in-town residences where supply remains exceptionally tight.
As values continue to rise in the premier legacy markets, many buyers are widening their search for better relative value. Those drawn to Aspen are having a closer look at Telluride, where the average price per square foot is nearly 40 per cent below Aspen’s.
In New York, some buyers frustrated by limited inventory and lofty pricing in The Hamptons are shifting toward the North Fork of Long Island, which offers a similar waterfront lifestyle with more attainable entry points. In Florida, buyers priced out of Palm Beach, Naples or prime Miami are increasingly exploring areas such as Pompano Beach and Vero Beach.
The broader takeaway is clear: demand for luxury vacation homes in America remains firmly intact, but buyers have become more strategic. Prime legacy markets should continue to lead due to scarcity and prestige, while emerging destinations stand to benefit from those seeking stronger relative value. In today’s market, the smartest money is not simply chasing the most famous zip code but identifying where the next wave of luxury demand is headed.
Dolly Lenz heads up New York-based Dolly Lenz Real Estate and has sold well over $US13bn worth of luxury US and international homes. Jenny Lenz is managing director of Dolly Lenz Real Estate.
dollylenz.com
Tom Offermann
Noosa remains one of Australia’s most sought-after destinations for buyers, particularly from the eastern states, who are not only looking to invest wisely but also to reward their success with a beautiful coastal escape they can enjoy throughout the year. Buyers are drawn to Noosa for its enviable year-round climate, where rainforest meets the sea and river systems, its superb beaches, and its relaxed yet refined lifestyle. Accessibility is another major attraction; a Melbourne family can leave mid-afternoon and be dining by the beach in time for sunset. These same qualities have underpinned exceptional capital growth, with some prime locations averaging more than 15 per cent per annum since the mid-1970s. The median house price in Noosa Heads, Noosa’s most central and tightly held suburb, is currently around $2.3m, with a median permanent rental return of approximately $1230 per week. At the prestige end of the market, however, homes can sell for prices in excess of $20m, while premium holiday rentals can achieve more than $30,000 per week during peak periods.
Sam Parsons
In Torquay and the Surf Coast, the balance has shifted from holiday-home ownership towards owner-occupiers over the past 12 months. Owner-occupiers and sea-change buyers are now dominating the market. Geelong and Melbourne families are driving the transition of Torquay from a holiday-home destination to a permanent residence location. Families are drawn to the relaxed coastal lifestyle. Several new primary and secondary schools have opened along the Surf Coast over the past five years, attracting these young families to settle in the area. A number of holiday homes are still held in the area but they tend to be long-term, generational homes that have been held in one family for 10 to 20 years. The land tax imposed on keeping a holiday home is a consideration for buyers. Investors are favouring long-term leases over short-term holiday rentals. Homes priced between $1m and $1.5m are most in demand this year. We recently sold a one-time holiday home in Torquay with a guide of $1.18m to $1.28m. Multiple offers were received over the campaign, mainly from owner occupiers, one of whom bought to settle here permanently.
Jim Hunter
What we’re seeing now in the NSW Hunter Valley isn’t a market slowing down, it’s one growing up. Buyers are becoming more considered, focusing on quality and long-term value rather than short-term plays. Projects such as Lovedale Farm highlight that shift. Spanning 240ha, it brings together residential living, resort-style amenities and a championship golf course into a genuinely curated village experience. It’s a strong reflection of the broader move towards lifestyle-led investment. The early response has backed that up; close to $100m in sales in our first 12 months on market shows there’s real demand for a premium, masterplanned offering like this. It also speaks to the resilience of the sector and the ongoing appeal of the Hunter Valley as Australia’s leading wine destination, all within an easy two-hour drive of Sydney. Looking ahead, the opportunity is about delivering more than just homes. It’s about creating a destination, something that brings together great design, natural beauty and high-end leisure, including our championship 18-hole course. We’re not just responding to demand, we’re helping shape what luxury wine country living looks like, right on Sydney’s doorstep.