Here’s How Much Entry-Level Luxury Homes Cost in 10 Pricey Markets—Led By an Unexpected Mountain Town

Luxury real estate takes on different forms depending on the location, and in some markets—from remote corners of the West to coveted coastal enclaves—buying into the high-end housing scene comes with an eye-watering price tag.

Gone are the days when a $1 million price point automatically signaled a luxury home. 

In 2025, a typical entry-level luxury home would set a buyer back nearly $1.3 million, according to a new report on the U.S. luxury market from Realtor.com®.

It's important to note that this figure, which is three times higher than the national median list price of $430,000 recorded in September, represents the entry point for the top 10% of the nation's highest-priced listings.

A home that falls into the high-end luxury category—the top 5% of the U.S. housing market—now costs at least $2 million. 

And a property in the ultraluxury tier, meaning the top 1% of the market, carries a starting price of $5.4 million. For context, that's enough money to buy more than a dozen median-priced homes.

But the concept of luxury housing does not exist in a vacuum and varies greatly across markets.

As part of the study, economists identified 10 markets with the highest entry-level luxury prices. Simply put, buyers looking to purchase a home in the top 10% of those markets will need very deep pockets.

"In many cases, the high prices reflect high-cost markets, where even the median home for sale is more expensive," explains Realtor.com senior economist Anthony Smith. "But these areas also reflect markets with a wide-ranging real estate market, and many of them have more sizable price differences between the median home and the entry-level luxury home."

As part of the study, economists reviewed both metropolitan and micropolitan areas (with 10,000 to 50,000 inhabitants) that had at least 500 listings for million-dollar homes in July 2025.

Popular and famously expensive coastal markets like Key West, FL, and Los Angeles had predictably high entry-level luxury prices—but a couple of mostly unknown Western mountain towns emerged as unexpected leaders.

Western small-town luxury

Located 180 miles west of Denver, the town of Rifle (population of 10,600) distinguished itself as the market with the highest entry price in the top 10% of listings, at a staggering $16.475 million. 

"Rifle was a real standout in the findings," confirms Smith.

According to the economist, there is a good reason why the humble, rugged community best known for Rifle Falls State Park, which is home to Colorado's only triple waterfall, found itself at the top of the exclusive ranking.

Smith explains that the Office of Management and Budget's delineation of the Rifle micropolitan area spans both Garfield and Pitkin counties, and here lies the answer.

"Within Pitkin County is Aspen, CO, home to many listings well over $50 million," explains Smith. "These ultraluxury properties raise the starting point for what qualifies as an entry-level luxury home."

In fact, the median list price for the Rifle micropolitan area in August was $1.7 million—higher than the national luxury threshold of nearly $1.3 million.

Will Grimes, real estate agent at Aperture Global Real Estate, tells Realtor.com the town of Rifle itself offers some unique advantages not found in the more glamorous, billionaire-packed Aspen, from sprawling ranches to river frontage and equestrian properties.

"Unlike polished resort developments, Rifle offers a 'real Colorado' lifestyle: Western culture, hunting lodges, modern-rustic estates," says Grimes.

On top of that, Rifle is surrounded by panoramic mountain ranges and has direct access to outdoor recreation, including fishing and skiing, within driving distance.

"Rifle stands out as a Western Slope 'value luxury' market: authentic, spacious, and outdoors-driven," adds Grimes. "Proximity to Aspen gives it credibility with wealthy buyers, but its appeal is in acreage, lifestyle, and authenticity, not glitz."

Park City proximity

Following Rifle, Heber, UT, clinched the No. 2 spot on the list, with entry-level luxury homes there starting at $6.8 million. 

Smith says that while technically a micropolitan area with a population of 19,000 people, Heber recorded more million-dollar listings than the much larger Salt Lake City.

Like Rifle, Heber benefits from its proximity to the renowned ski areas of Park City, UT, and the Wasatch Mountains.

"Both areas attract affluent buyers seeking ski-in properties, expansive ranch land, or private retreats, homes often custom-built and priced well into the eight figures," notes Smith. "Buyers here aren’t just paying for square footage, but for exclusivity, land, and proximity to recreation."

From coast to coast

The micropolitan area encompassing Key West and Key Largo, FL, came in third, with the top 10% of the market’s priciest listings starting at $4.5 million. 

"While that's also high, the market has broader inventory and a deep base of vacation and retirement buyers," Smith says of Key West's entry-level luxury price tag. "Here, the luxury price point reflects the premium for oceanfront property and international appeal, but the segment is more evenly distributed."

Smith points out that the Florida Keys, once home to Ernest Hemingway, does not have many ultraluxury listings over $10 million that pull the threshold higher, as is the case in Rifle and Heber.

Los Angeles held the fourth-highest entry-level luxury price of $3,995,000, followed closely by Bridgeport, CT, at $3.95 million, rounding out the top five. 

Other high-priced markets fit for ultrawealthy homebuyers included Kahului, HI ($3,900,000); Santa Rosa, CA ($3,449,000); San Jose, CA ($3,495,000); Barnstable Town, MA ($3,495,000), and Naples, FL ($3,408,000).