The Coldwell Banker Global Luxury® Mid-Year Report revealed a notable shift in 2025: the rise of the “smart luxury” buyer. Practical considerations are taking precedence over purely lifestyle-driven motives, with purchase decisions guided by discernment, strategy, and long-term value rather than indulgence alone. These buyers are highly selective, willing to wait on the sidelines until the right opportunity appears.
To explore how this trend is playing out across the country, I sat down with an all-star panel of Coldwell Banker-affiliated agents. Each is a leader in their market and among the most respected voices in luxury real estate: Carrie Wells in Aspen, Colorado; Nathan Zeder in Coral Gables, Florida; Danny Hertzberg in Miami Beach, Florida; Jade Mills in Beverly Hills, California; Billy McNair in Menlo Park, California. Our roundtable covered the realities of today’s luxury market—whether it was buyers dissecting every line item to the growing appeal of turnkey homes, or the rise of wellness as an essential amenity, not an extra. From trophy land to tax considerations and creative financing, their insights reveal how strategy and selectivity are reshaping the art of the high-end deal.
Are you seeing luxury buyers in your market becoming more value-conscious or strategic in how they approach purchases? If so, how is that showing up?Nathan: We’re seeing a more cautious, analytical buyer in our market. Right now, our biggest wave of new buyers is coming from London. These are ex-pats looking to move their primary residences to Miami after the U.K. changed its tax laws for non-domestic property owners. The tax advantages in Miami and Florida are a huge draw for them, and they view Miami as an important U.S. hub. We’ve seen many of them looking for properties in the $5 to $10 million range, but they’re looking in higher price points too. Singer Robbie Williams just closed on a $40 million property in Coral Gables, which was a record sale for the area. Still, even high-net-worth buyers are conservative and very focused on value.
Billy: Luxury buyers are scrutinizing deals more than ever. Just today, I spoke with a client on vacation in Switzerland about a $15 million transaction, and they were agonizing over whether to counter at $100,000 or $150,000 less—just 1% of the purchase price. In the past, they would have simply accepted and moved on to avoid interrupting their vacation. Now, every number gets analyzed.
That scrutiny extends to post-purchase improvements, too. What used to be a rough estimate—an extra $1 million here or there—has turned into detailed, line-by-line calculations: $25,000 for AV upgrades, $100,000 to remodel a single bathroom. The question they’re asking is, “If I put an additional $1-2 million into this property, will I be able to recoup it when I sell?” They’re watching comps closely and weighing every decision against potential resale value.
In Silicon Valley, there’s still a lot of optimism—especially with AI fueling what many see as the next “gold rush” and companies like Nvidia hitting record valuations. Many believe interest rates will drop and that an influx of wealth is coming to the area from the AI sector. For that reason, sellers are not particularly motivated right now. On the flip side, buyers are feeling they need to get ahead of it without overpaying.
Jade: The challenge is that buyers are looking for value, but sellers still want top dollar, so there’s a disconnect that we agents need to bridge.
We’re in a different situation in L.A. and Malibu because of the fires. Our market has been holding steady. We’ve had some big recent sales—$80 million and $49 million, the two highest in the area—but inventory in Malibu is high. We also just opened two large escrows—$25 million and $35 million. Some of my clients who were impacted by the fires have moved south to Newport Beach, Laguna, San Diego, and Manhattan Beach. There’s still a lot of uncertainty in the Palisades, where no one wants to be the first to move back and be surrounded by construction for years.
Danny: I would say across the board, luxury buyers are very value-driven right now. They want to feel like they’re getting a good deal. They are very opportunistic. They are not making offers until they find the right property, and they’re willing to wait...and wait. Some are getting creative during negotiations, too. We’ve seen some long-delayed closings so they can avoid carrying a mortgage on land until they can start building.
Carrie: I’d say yes, to a degree. Overall inventory in Aspen is up about 24%, although condo inventory is down. When buyers find something that really works for them, as long as they see the value, they’re willing to move forward. We have seen price reductions for the first time this year since the pandemic. In today’s market, you have to be priced right—buyers are sensitive to that. Some are holding off on decisions because they’re not sure how strong the market will be after the summer season. That said, even with more inventory and some price corrections, values here are still trending upward year over year.
A “smart” buyer understands the nuances of our local market. They know prices reflect both the desirability of our locations and the cost and difficulty of building here. There are very strict land-use regulations in Aspen and Pitkin County. For example, Pitkin County has reduced the maximum house size from 15,000 to 9,250 square feet, so if a home larger than 10,000 square feet comes on the market, it’s essentially irreplaceable. You cannot create that size of home anymore. Building new outdoor amenities like fire pits, heated pools, and snow-melt systems is also now limited by new energy code caps, which makes properties that already have these features even more sought-after and sell for a premium.
Are you seeing differences in how smart luxury plays out across different wealth tiers?
Danny: At the ultra-high end in Miami—about $30 million and up—the market is extremely strong. At the entry level of luxury, which starts at about $5 million, that market is more price-sensitive. It’s really two different worlds. Prices are still climbing at the very top, and there’s more demand than supply.
Nathan: The single-family market in Miami is significantly stronger than the condo market, especially when considering older buildings, where sales have been impacted by the aftermath of the Champlain Towers South collapse. While we recently sold a $3,500-per-square-foot condo in a newer trophy building, that’s the exception. Overall, condos are taking longer to sell and often at lower prices. Domestic buyers are gravitating toward single-family homes, while international buyers tend to prefer condos.
Carrie: The strongest activity by far is at the ultra-high-end, and for Aspen, that’s about $50 million and above. Aspen’s condo market is also a bit of an outlier compared to what you’re seeing in Miami. In Snowmass, we are under contract for a brand-new 2,300-square-foot condo at $16.3 million, which will set a record for the highest price per square foot across all product types when it closes next week. In Aspen Core, we have a $6.9 million condo under contract that is only 700 square feet inside, also closing in a week, making it one of the largest price per square foot sales ever. It all comes back to supply and demand. When something rare comes on the market here, buyers here are willing to pay for it.
Are buyers in your area expressing more concern about resale value, tax implications, insurance, or investment return when purchasing luxury real estate?
Billy: Yes. Resale value, investment return, and tax implications are all major considerations. Buyers are increasingly scrutinizing the future liquidity and ease of resale for properties. This was a secondary concern in the past, and now it’s a primary concern, especially if a seller is concerned about selling in a softer market than the market they’re buying in. They’re more willing to choose an inferior house in a better location if it promises better resale prospects.
Nathan: I hate to use the old real estate adage, “location, location, location,” but it still holds true. You can move a mile east/south/north almost anywhere in town and prices jump 25% to 40%—and these aren’t even waterfront properties. It’s all about proximity to the city. Buyers want to be near amenities like schools, doctors’ offices, shopping—and they don’t want to spend their time sitting in traffic.
Danny: Walkability is back in a big way—being able to walk the kids to school, to shops, to restaurants. Security is also a major focus, from gated communities to personal security consultants and advanced home systems.
Carrie: It varies a lot by buyer, but location is almost always a priority. I often tell buyers, “You can remodel a house, but you can’t change its location.” Some will compromise on location if the views are spectacular, while others want a specific neighborhood closer to the Core so they don’t have to deal with traffic. Others will say they want a certain location, and they want views and new product.
For many buyers in the Aspen market, they understand that construction costs here are extremely high—anywhere from $2,000 to $6,000 per square foot, depending on finishes. The reason why costs are so high is because labor is so scarce. Affordable housing is a real challenge in our valley, with some workers having three-hour commutes to work. Some nonprofits, which I am involved with, are even buying lower-end condos to help house full-time staff.
Billy: I’ve had a disproportionate number of Baby Boomer sellers who are moving from California to Southern states. Some of it is tax-driven, but it’s mostly politically driven. If taxes in California were your biggest concern, you probably left 20 years ago. Now it’s politics, wildfire risk, and lifestyle.
Danny: I had a client who just moved from California. Yes, taxes are part of that decision—but the local political climate was an even bigger driver. Safety is another powerful motivator for them.
What about insurance concerns?
Jade: Insurance costs have definitely become a bigger factor in the conversation.
Billy: In California, every single transaction now involves an insurance review. That wasn’t even a conversation in the past.
Carrie: The hot topic right now is insurance. Aspen is mapped in a wildfire area—even though we haven’t had any major events in Snowmass or Aspen in recent years. Some insurance companies won’t write new policies, and others will only offer limited coverage. We’re not seeing the same scale of issues as California or Florida, but it’s weighing on buyers’ minds. Now, one of the first questions they’ll ask the seller is, “Who insures this property?” That wasn’t happening even two years ago. Some buyers are even self-insuring to ensure they have replacement costs covered. I had one sale recently where the buyer’s previous policy was $30,000 a year. Quotes for the new property came in at $160,000. He wanted a rebate from the seller for that difference; the seller refused, and ultimately the buyer decided to absorb it because it was such a special property.
Danny: At very high price points, buyers are thinking about carry costs. That’s one reason turnkey homes are so appealing—they often come with significant insurance advantages compared to older properties. Buyers are asking whether they’d rather pay $250,000 a year in insurance or $25,000.
Have you noticed a shift in how buyers are financing high-end homes—such as increased use of cash, portfolio loans, or hesitancy tied to interest rates?
Jade: People are still financing if they really want to buy, but our last three deals have all been all-cash. I have a buyer from China who’s been waiting on financing, and with interest rates so high, it’s been difficult.
Billy: I have high-net-worth clients borrowing through margin loans or against their portfolios. In some cases, if a client’s company is seen as “the next big startup,” lenders will loan against that, too. People are finding ways to leverage assets because oftentimes they don’t want to liquidate stock to pay all cash.
Jade: We just sold something for $32 million. The buyer didn’t want to pay cash, so he got a loan through Wells Fargo. There are a lot of ways people are structuring deals right now.
Nathan: Almost everyone is leveraging at some level. Where rates have landed, the $5 million-and-under market feels the biggest impact, so borrowing has become more challenging for these buyers.
Danny: We’re seeing more seller financing than in the past, along with a lot of portfolio loans. Private banks are being aggressive and advising clients to hold onto their assets, offering competitive rates to make that possible. There are still plenty of cash buyers out there, but it’s a mix.
Carrie: In our market, almost all transactions are cash. Financing is rare.
What types of properties or features are attracting smart buyers right now?
Jade: Turnkey. They want done, done, done.
Nathan: Same, same, same.
Carrie: I think demand for new product and new construction will stay strong. Buyers in our market—who are sometimes purchasing their second, third or fourth property—are willing to pay a premium for something that’s done and move-in ready. Time is their most valuable commodity, and they don’t want to wait through a remodel or build process.
Billy: Some of the key features they want are ADUs or separate dwellings for secondary-use spaces—especially for multi-generational living. This is especially desirable among international buyers, who often like to use those spaces for staff accommodations or visiting family on extended stays. There’s also a strong push toward wellness amenities: cold plunges, saunas, resort-level gyms. It’s no longer enough to have a basic home gym—it needs to include a massage room and cold plunge. I think that’s partly a byproduct of COVID, when people invested in at-home wellness.
Danny: Cold plunges went from being an exciting add-on to an expected feature. We’re seeing infrared saunas, steam rooms, and whole-home water filtration also factor in big for people. Wellness is big—our clients want to work out at home, get massages at home, and don’t want to go to a big public gym.
Nathan: The whole wellness trend aligns with their general desire for new construction. If there are wellness features included, it’s a product that will sell quickly.
Danny: We’re also seeing buyers purchase adjacent properties—waterfront in front and back—to create compounds with outdoor padel courts, which are very popular among younger affluent buyers.
With inventory rising and higher interest rates squeezing luxury buyers in the lower wealth tiers, do you think there could be a growing appetite to take on renovation projects?
Jade: If it’s not turnkey, buyers want a huge discount—half price if they’re going to have to do the work. And sellers don’t want to do that.
Billy: Right now, affluent buyers aren’t feeling urgency. If the property isn’t already done, they’ll wait for the right one rather than take on renovations.
Nathan: Exactly. They can wait. It’s not a frothy market. In Miami, migration levels aren’t anywhere near the pandemic peak. I have some buyers who are currently living in rental properties, and they tell me that they prefer to keep renting to taking on a project.
Danny: At the ultra high end in Miami, there’s a huge market for “trophy land”— waterfront properties so rare they’ve never been on the market before or haven’t been on the market in generations. The turnkey properties on the market are not “turnkey enough” for these buyers. They want the ability to build exactly what they want in the location they want. Usually that means gated communities with wide open views.
Nathan: These are generational pieces of property. They have never come onto the market before, ad people are willing to pay the price. All of the big sales in the Miami area this year have been land.
Danny: Very few luxury buyers are interested in historic homes right now; in many cases, the land is worth more than the structures. It can take two to three years to build, and we can’t build fast enough to meet demand.
Thanks for speaking with me. You’ve all added great nuance to the "smart luxury" trend highlighted in the Mid-Year Report. We’ll be tracking it closely as the year unfolds.
MIchael Altneu is Vice President of Luxury for Coldwell Banker Real Estate LLC.
