Homebuyer Preferences Shift Across the Luxury Housing Market

The vacation and investment home market has evolved in recent years, driven primarily by the shifting lifestyles and priorities of luxury homebuyers, according to real estate advisory firm RCLCO's 2025 Vacation/Investment Home Survey, which captures the preferences of more than 1,000 U.S. households with net worths exceeding $1 million. The survey explores these buyers’ motivations for purchasing a home, ultimately offering insight for developers, designers, builders, and other luxury housing industry stakeholders.

The following trends emerged from the report:

1. More buyers are searching the luxury marketplace for investment properties

More than in the past, luxury buyers are purchasing homes in vacation hotspots in hopes of using them as income-generating assets rather than personal retreats. In 2025, 42% of respondents said that investment income was a key factor in their purchase, up from 33% in 2023.

2. Branding is everything for luxury buyers

Interest in branded residences—housing communities with ties to popular hotel, fashion, or entertainment brands—is on the rise. About 80% of survey respondents say luxury branding is important to them, compared with 75% two years earlier. Buyers are willing to pay more for the prestige, service, and reliability these affiliations deliver, often citing brand recognition, enhanced amenities, and investment stability as top reasons for choosing properties with luxury branding. Many respondents also say they would pay a 20% to 30% premium for these affiliations.

3. Buyers are searching for amenity-rich communities

Amenities remain an important part of the appeal for luxury vacation and investment homebuyers, shaping design and pricing strategies. Respondents consistently ranked dining, shopping, and access to outdoor activities—such as swimming, biking, walking trails, and other recreation—among their top priorities.

4. Even luxury buyers want lower price points

While some buyers express increased interest in branding and amenities, price continues to be a concern, even among the wealthiest buyers. Demand for homes below $1 million remains strong, with 60% of respondents seeking housing options under that threshold.