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Home sales might be in a summer slump, but in Los Angeles, the luxury market is bucking the trend—and buyers are paying in cash.
“Roughly 1 in 4 buyers in L.A. County paid in cash this spring, the highest share in more than a decade,” says Hannah Jones, senior economic research analyst at Realtor.com®.
In L.A., the median home list price is $1.18 million, nearly 13 times the typical household income of $91,380, making affordability a struggle for many residents. But ultraluxury homes ($20 million and above) are switching hands among the rich.
Fueling some of those sales are celebrities and foreigners who aren’t afraid of paying the “mansion tax“.
“The sector of buyers are a different demographic,” says Carl Gambino, top-producing luxury Compass real estate agent who works with ultrawealthy clients in Los Angeles, New York, and Florida. “They are the wealthiest people in the world, and they’re not as affected by rates and economies.”
In June, Paris Hilton and her husband, Carter Reum, snapped up Mark Wahlberg’s former Beverly Hills estate for a jaw-dropping $63.1 million, making it one of the most expensive homes sold in L.A. that month.
Spanning more than 30,000 square feet and set on 6 manicured acres in the gated Beverly Park neighborhood, the property features everything from a private skate park to a five-hole golf course, wine cellar, home theater, and staff quarters. It also has 12 bedrooms and 20 full bathrooms.
The property was once listed in April 2022 for $87.5 million and sold in 2023 for $55 million—just ahead of L.A.’s new mansion tax, which tacks on a 4% fee to home sales over $5.15 million. Proceeds are earmarked for homelessness prevention and affordable housing.
Hilton and Reum’s home purchase is just one of dozens of examples that demonstrate the renewed strength of the luxury market in the area. In fact, the couple’s purchase wasn’t even the highest-priced sale.
That was 10905 Chalon Road, which was sold for $67.5 million on June 30, 2025, according to the latest data from Realtor.com.
Realtor.com data from January to May 2025 shows just how dominant cash is at the high end: 25.4% of the 6,618 homes that were sold in the $1 million to $5 million range were paid for in cash. That number jumped to 54.3% for the 287 homes sold in the $5 million to $10 million range—and an astonishing 56.7% of buyers paid in cash for the 104 homes with price tags over $10 million.
(Realtor.com)
(Realtor.com)
Who is buying?
Celebrities are an obvious clientele for high-end properties in star-studded L.A., but there has been an influx of foreign buyers, too, with international purchases making up nearly 15% of luxury sales this spring.
“This influx of foreign capital has helped sustain high-end price levels even amid broader economic uncertainty and housing affordability pressures,” says Jones. “Chinese and Canadian buyers, in particular, remain active in the L.A. market.”
The foreign money flowing into the market is only one segment of the market.
“There’s a variation of tech billionaires, hedge fund owners, finance people—it’s a variety,” says Gambino. “These buyers aren’t fazed by interest rates or economic jitters like typical homebuyers are.”
Nationally, foreign buyers bought $56 billion worth of U.S. homes from April 2024 through March 2025, according to the National Association of Realtors® 2025 International Transactions in U.S. Residential Real Estate report.
“However, it also intensifies competition at the top of the market and further disconnects luxury pricing from the affordability constraints faced by [lower-] and middle‑income buyers,” adds Jones.
Indeed, the luxury surge stands in sharp contrast with what many L.A. homebuyers are facing.
“We’re still in a major housing shortage out here, mixed with an affordability crisis,” Victor Currie, real estate agent with Douglas Elliman in Beverly Hills, tells Realtor.com. “A few months ago, buyers seemed to be adjusting to the idea that interest rates weren’t coming down anytime soon. But now, with shifting tariffs and political instability, a lot of people are back to waiting.”
Meanwhile, 1120 Wallace Ridge—a five-bedroom estate in Beverly Hills—was sold for $32.3 million in June, and 1414 Donhill Drive, a brand-new, 13,000-square-foot mansion in the same ZIP code, was sold for $32 million.
Another $32 million mansion at 750 Lausanne Road in Los Angeles, overlooking the Hotel Bel-Air, was sold in June. All this while inventory remains tight and affordability remains a concern for the average buyer.
“The strong demand for spec homes shows investors are looking for ready-to-go, low-hassle deals in today’s market,” adds Jones. “Instead of taking on construction risks, they’re opting to pay more for finished luxury homes they can rent out, resell, or enjoy right away.”
Realtor.com data shows that more than 40% of L.A.’s recent $10 million-plus sales were newly built or newly renovated homes.
Ultraluxury is the new era
What defines luxury real estate in Los Angeles is shifting dramatically.
“It used to be historically that luxury was $5 million-plus. I would say it’s climbing up to $10 million-plus, and then the ultraluxury begins at $20 million-plus,” says Gambino. L.A.’s geography plays a key role.
“There’s a huge amount of the wealthiest people in the world who want estates here. The topography and size of the land available means you can find massive, private compounds that are hard to come by in places like New York or Miami.”
While buyers might be facing limited options below $5 million, Gambino says, “There’s not a huge amount of inventory in the ultrahigh-end space, but there’s more here than other markets in the world.”
And he says buyers in the ultrahigh-end space are snapping up signature homes in Beverly Hills, Bel-Air, and Malibu—where some of the highest sales are recorded.
This drives home the key trend of cold, hard cash being plunked down for megamansions.
“It emphasizes the financial standing of today’s high-end buyers,” says Jones. “These are deep-pocketed individuals, often less sensitive to interest rates and more motivated by lifestyle, investment diversification, or long-term value.”
Gambino’s clientele reflects that.
“They’re collecting homes. In L.A., they might buy an architectural-style [estate], like a Frank Lloyd Wright. Whereas in New York, they might buy a penthouse,” he says.
“They really are collecting these properties and building a multicoastal portfolio.”