The 2026 Luxury Outlook
Building on the strengths of 2025, the luxury real estate market is poised to continue outperforming the general market. As we enter the new year, the Sotheby’s International Realty® brand’s 2026 Luxury Outlook® report contains the market insights you need to help make property buying or selling decisions.
Compared to many legacy luxury markets, North Idaho continues to offer relative value while delivering exceptional natural amenities, attracting both primary and secondary homebuyers from the West Coast, Mountain States, and beyond.
This year’s Luxury Outlook report analyzes the evolving state of luxury real estate markets globally and the economic and policy factors that impact it the most. These include the rising importance of inherited wealth, the growing acceptance of cryptocurrency and the overall strength of the stock market, despite some volatility.
Rising inventory levels in the U.S. and abroad are also examined, revealing the locations where new opportunities for homebuyers can be found. The supply of luxury homes in the U.S. is at its highest level since 2020, and markets in Spain, Portugal and Thailand are seeing an increase as well. The growing popularity of multigenerational housing among wealthy families is also examined, as a means of building inherited wealth and forming long-lasting memories with loved ones.
Across the Idaho Panhandle, including Coeur d’Alene, Hayden Lake, and Sandpoint, buyers favor properties designed for extended family living, with guest houses, dual primary suites, and flexible layouts. Lakefront estates on Lake Coeur d’Alene are especially sought after, offering space for gathering alongside privacy through acreage, shoreline separation, or thoughtful design. These homes resonate with buyers focused on legacy ownership, shared experiences, and long-term wealth preservation.
Finally, this report looks at how wealthy homeowners prioritize privacy when searching for a new property, considering factors such as sight lines and up-to-date exterior and interior security as well as cybersecurity, and how architects are following their lead.
Introduction by Rob Orth, President, Tomlinson Sotheby’s International Realty