Surprising Metros Where Entry-Level Luxury Mansions Cost Well Under $1 Million

Beyond the hot beach and resort markets, a new wave of affordable luxury properties is emerging where a budget of less than $1 million can still secure a high-end property.

The national luxury margin, which represents the top 10% of the housing market, reached $1.2 million in February, up 1% from last month but down more than 3% from a year ago, according to the latest Realtor.com® luxury report.

However, in several affluent, highly integrated markets in the Sun Belt, the median price for luxury homes is between 12% and 37% below the national average.

Among those high-end “haven markets,” San Antonio, TX, led the way with a budget-friendly luxury threshold of just $750,510 in February, down nearly 4% year-over-year.

In San Antonio, the average “starter” luxury home costs just 2.3 times the metro median of $319,990, a much lower number than the national luxury-to-median multiple of 2.9.

This price gap ensures that San Antonio is currently one of the most affordable luxury markets in the US by 2026.

The Lone Star State’s top ‘refuge market’

Travis Amaroreal estate agent at Kuper Sotheby’s International Realty in San Antonio, said
The South-Central Texas metro area remains highly undervalued compared to other major metros in the region and across the country, offering buyers a significant discount compared to lower-priced markets such as Dallas and Austin, TX.

“We have houses here that sell for $2 million to $3 million, but if you were to pick that house up and put it on the same lot in Dallas, it would be a $9 million house,” Amaro told Realtor.com.

Even at the ultrahigh end, a property in one of San Antonio’s desirable “old money” neighborhoods that sells for $7 million would be worth $20 million in Houston or Austin.

“San Antonio has been discovered, but we haven’t reached the levels of other big cities, so it’s a big secret in the country,” Amaro said. “We have the same quality of housing that you would see in Houston or Dallas. We just don’t have as many of them.”

What’s keeping prices affordable in San Antonio, according to Real Estate Partners, is the lack of high-end corporate headquarters after telecommunications giant AT&T moved corporate operations to Dallas in 2008.

Despite the influx of senior vice presidents and executives with large transportation budgets, the price drop is still tightly tied to local wages.

“We just don’t have the level of venture capital spent in San Antonio,” Amaro said.

However, what San Antonio does have is a highway system that allows residents to get anywhere in the city within 30 minutes, even on the street, and the small town feel gives it a sense of community.

Although it is a city with 1.6 million people, I can go anywhere in the city and most of the time I meet someone I know,” said Amaro.

Meanwhile, Houston emerged as the second least expensive luxury market in February, with homes in the top 10% in the metro area starting at $794,170, up 2.4% from last year.

The booming Texas city also stood out for the speed of its high-end category, with the average property sitting on the market just 54 days, reflecting strong demand and an active buyer pool.

Elsewhere in the sprawling Sun Belt, Orlando, FL, came in third, with its median income reaching $893,671, just 2.2 times that of the local community, followed by Charlotte, NC, at $898,840.

“The supply of land and outdoor development in Sun Belt metros allows the luxury of a builder’s range to expand, and helps keep prices from varying more than the median,” said Realtor.com’s chief economist. Anthony Smith.

Affordable East Coast luxury

One entry in the Northeast, Philadelphia, made the top five, with the most expensive entry remaining steady annually at $899,465, below the entry point in global markets such as New York City, Miami, and Los Angeles.

“For buyers, that means it’s still possible to own a luxury home near Rittenhouse Square or other Center City neighborhoods at a price that’s often considered mid-market in most major cities,” Andy Oyireal estate agent at Berkshire Hathaway HomeServices Fox & Roach Realtors, tells Realtor.com. “Luxury properties exist in Philadelphia, mostly over three million dollars, but a broader group of buyers can play a significant role in the luxury segment.”

One of Philadelphia’s biggest selling points is that it is a neighborhood city that offers a wide variety of lifestyle choices.

“Buyers can choose between the energy of Rittenhouse Square, the historic charm of Society Hill, or the quiet residential area of ​​Fitler Square, while living in a walkable downtown area,” Oei said. “That combination of location, lifestyle, and affordability is what defines Philadelphia’s affordable luxury market.”

According to the agent, Philadelphia offers many of the advantages that buyers look for in big cities while still being very livable. Center City is very walkable, and residents can access parks, restaurants, theaters, museums, and professional offices within a few blocks.

The city is also anchored by major institutions such as Penn Medicine, Jefferson Health, the University of Pennsylvania, and Drexel University, which contribute to economic stability and overall quality of life.

In the City of Brotherly Love, entry-level luxury often takes the form of a well-designed condo priced between $1 million and $2 million in a desirable location.

“Buyers are always prioritizing homes that support comfortable urban living. Outdoor space, strong natural light, thoughtful floor plans, and proximity to neighborhood parks and restaurants are especially desirable,” Oei said. “Many buyers are looking for move-in ready homes so they can start enjoying the lifestyle immediately.”

Unsurprisingly, given its relatively affordable level of luxury, Philadelphia attracts a large number of buyers from high-priced cities along the Northeast Corridor, including New York City and Washington, DC.

“Buyers from those markets are often surprised at the value they get here,” notes the agent. “In many cases, selling a small apartment in Manhattan or Brooklyn allows a buyer to purchase a much larger and more luxurious residence in Center City.”

While Philadelphia may not be what first-market buyers think of when they think of luxury real estate, Oei says many quickly realized it offers something unusual: the lifestyle of a major urban center with a more accessible location in the luxury market.

Some notable budget markets

Another real estate market, Chicago, ranked sixth on the list of metros with the lowest entry levels, with the most expensive 10% of listings starting at $909,884.

The Sun Belt hubs of Jacksonville, FL, and Atlanta took seventh and eighth place, with entry-level luxury homes starting at $923,845 and $925,852, respectively.

Dallas ranked ninth, at $951,679, boasting the highest annual million-dollar listing price of 2,701 properties, while Minneapolis rounded out the list at $1.05 million.

“Even though it’s over $1 million, it represents 2.5 times the area median and sits below the national floor of $1.2 million,” Smith said.