Real Estate Roundup: August 18, 2025
Leonard Steinberg, Compass Agent
The global economy and luxury real estate market are evolving quickly—and with every shift comes opportunity. In August, several trends stood out across finance, housing, and lifestyle that matter for buyers, sellers, and investors alike.
Economic Ripples You Shouldn’t Ignore
The jobs market remains under pressure. July payroll growth came in at just 73,000—far below expectations. While this weakness could encourage the Fed to push interest rates lower, it highlights how policy uncertainty and turbulence weigh heavily on hiring and corporate investment.
At the same time, inflation is subtly reshaping wealth thresholds. Once upon a time, being “ultra-high net worth” meant $30 million. Today, with global wealth expansion and inflation, many firms see $100 million as the true benchmark. The same redefinition of value is happening across real estate.
Meanwhile, copper prices—after spiking on tariff fears—fell sharply in August. Since copper is a core building material for plumbing, wiring, and roofing, this dip could help temper rising construction costs, a small relief in an otherwise costly building environment.
And for context: to be in the top 1% of earners in the U.S., incomes now range from $416,000 in West Virginia to over $1 million in Connecticut. That’s the bar for the highest tier of financial power.
The Housing Market: Winners, Losers, and Big Shifts
Central London luxury real estate has seen a sharp correction—values are down over 22% in nominal terms and 45% in real terms since 2014. Brexit and changing tax policies have taken their toll.
Los Angeles luxury sales rose 7.6% year-over-year in Q2, with the median luxury sale hitting $13.75 million.
Greenwich, Connecticut, often called the “Palm Beach of the Northeast,” has already recorded more $10M+ sales in 2025 than in all of 2024, putting it on track for record-breaking ultra-luxury performance.
New Rochelle, New York, offers a case study in housing affordability done right. By encouraging new construction—streamlined zoning, tax incentives, and easier approvals—the city added over 4,500 apartments in a decade, keeping rent growth far below surrounding markets.
The Greatest Luxury of All: Time
While commodities rise and housing shifts, one truth in luxury marketing is louder than ever: high-net-worth buyers have more money than time.
Move-in-ready or decorator-ready homes command massive premiums because buyers don’t want to spend years renovating. Consider this: someone earning $5 million a year makes roughly $2,400 per hour. Two years of renovations at just three hours a week equates to nearly $750,000 in lost productive time—not to mention the stress.
That’s why recent, high-quality renovations and perfect staging are essential if sellers want top-dollar offers. For buyers seeking upside, unrenovated homes can still present opportunities—but the market premium is going to turnkey.
Lifestyle, Wellness, and Evolving Luxury
Pools and outdoor spaces are shifting. Gone are the days of baking in the sun all day. Buyers now seek shaded cabanas, pool houses, and wellness-oriented exteriors that mirror the health-conscious evolution of luxury living.
Short-term rentals are no longer just for small investors. Even ultra-wealthy owners are renting out Hampton estates and superyachts to offset ownership costs. Expect more co-ops, HOAs, and neighborhoods to adapt rules to this reality.
Longevity and wellness continue to shape luxury demand. From fasting practices to AI health tracking, affluent buyers are investing in homes—and lifestyles—that extend both healthspan and quality of life.
Confidence, Data, and Perception
One recurring theme in August was the danger of bad data. Whether it’s incomplete reporting on Manhattan luxury sales or misleading headlines about “surging rents” in New York (which actually reflect new commission structures rather than pure inflation), the narrative often doesn’t match the underlying truth.
This matters because confidence drives markets. In real estate, confidence in a neighborhood, an agent, or even a staged property can make or break multi-million-dollar decisions. Globally, confidence—or the lack thereof—is shaping not just home sales but also investment flows, politics, and consumer behavior.
Final Thoughts
Whether it’s navigating shifting definitions of wealth, capitalizing on turnkey demand, or seeing through misleading data, the common denominator is clear: luxury today is defined not only by money, but by time, confidence, and perspective.
As summer winds down, the opportunities are there for those who prepare thoughtfully and act decisively.
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Featuring
Leonard Steinberg
Compass Agent
