Brooklyn's Park Slope tops Redfin's annual ranking of the hottest luxury neighborhoods, with Highland Park, IL and Overland Park, KS close behind. Strong demand and tight inventory are driving competition despite elevated mortgage rates.
Source: Original report
Luxury Demand Defies a Soft Broader Market
While much of the U.S. housing market is shifting in favor of buyers in 2026, a select group of high-end neighborhoods is bucking that trend. A new Redfin analysis of listing activity and competition scores across the 100 most populous metro areas identifies the zip codes where luxury demand is most intense — and supply is failing to keep pace.
"Unfazed by high mortgage rates and an uncertain global economy, luxury homebuyers are having an outsized impact on the otherwise tepid spring 2026 housing market," said Asad Khan, Redfin Senior Economist. He noted that limited inventory in many desirable neighborhoods — combined with strong schools, amenities and commute access — is pushing buyers to compete even at elevated price points.
Redfin ranked zip codes by year-over-year growth in listing views and its proprietary Compete Score, filtering for neighborhoods priced at or above the 65th percentile for their parent metro. All data covers January through February 2026.
The Top 10 Hottest Luxury Neighborhoods of 2026
- Park Slope, Brooklyn, New York — Median sale price: $1,770,000 (+10.6% YoY)
- Highland Park, Illinois — Median sale price: $762,500 (+5.2% YoY)
- Overland Park, Kansas — Median sale price: $840,000 (+8.5% YoY)
- Belmar, New Jersey — Median sale price: $725,000 (+12.9% YoY)
- Coronado, California — Median sale price: $2,449,020 (+6.8% YoY)
- East Orlando, Florida — Median sale price: $477,000 (+37.8% YoY)
- Noe Valley, San Francisco, California — Median sale price: $2,250,000 (+18.3% YoY)
- Scottsdale, Arizona — Median sale price: $1,087,500 (+20.8% YoY)
- Mechanicsville, Virginia — Median sale price: $522,501 (+39.7% YoY)
- Libertyville, Illinois — Median sale price: $643,000 (+41.5% YoY)
No. 1: Park Slope, Brooklyn
Brooklyn's Park Slope earned the top spot driven by surging listing views — up 34.4% year over year — and rising prices that haven't deterred determined buyers. Redfin Principal Agent Jason Warner points to the neighborhood's acclaimed public schools, abundant green space adjacent to Prospect Park and its appeal to young families who might otherwise have looked to Manhattan.
"Park Slope, with all the amenities of Manhattan, plus the feel of a residential neighborhood, is increasingly becoming a preferred alternative" to Central Park-adjacent enclaves, Warner noted. He added that professionals with remote or hybrid work arrangements are increasingly prioritizing Brooklyn over Manhattan entirely.
No. 2: Highland Park, Illinois
Located roughly 25 miles north of downtown Chicago along the Lake Michigan shoreline, Highland Park combines walkable streets, century-old homes and highly regarded schools. Nearly 43% of homes sold above asking price in the January–February period — a strong indicator of buyer competition. Senior Market Manager John Malandrino describes it as a neighborhood that delivers urban conveniences within a suburban setting.
No. 3: Overland Park, Kansas
Overland Park registered the most dramatic surge in listing views among the top three, with median views per listing climbing 158.8% year over year. Redfin Premier Agent Jo Chavez attributes the demand to well-regarded schools and a relatively modern housing stock, much of it built within the past 25 years. A growing local job market and expanding retail have further cemented its status as one of the Midwest's most sought-after suburban markets.
AI Wealth Powers Noe Valley to No. 7
San Francisco's Noe Valley stands out for a specific demand driver: the rapid wealth accumulation among employees of Bay Area artificial intelligence companies. Redfin Principal Agent Ali Mafi noted that large compensation packages are funneling new wealth into the neighborhood, pushing prices up sharply. Nearly three-quarters of homes sold above list price, the highest share on the entire top-10 list. Days on market averaged just 14 — far below any other neighborhood ranked.
Florida, Virginia and the Midwest Round Out the List
East Orlando's master-planned communities, anchored by neighborhoods like Avalon Park and Waterford Lakes, earned the No. 6 spot with a remarkable 37.8% year-over-year price gain. Mechanicsville, Virginia — a spacious suburban area northeast of Richmond — posted an even steeper 39.7% price increase while offering relatively accessible luxury price points near $522,000. Libertyville, Illinois topped all ranked neighborhoods in price growth at 41.5% year over year, with agents noting that residents rarely leave, keeping available inventory unusually tight.
Methodology
Redfin's ranking covers U.S. zip codes within the 100 most populous metro areas, scored by year-over-year growth in listing views and the Redfin Compete Score — a 0-to-100 measure incorporating days on market, share of above-list-price sales and sale-to-list price ratios. Only zip codes in the 65th percentile or higher by median sale price for their parent metro were eligible. Zip codes needed at least 50 home sales between January 1 and February 28 and a Compete Score above 50 to qualify.
