How Mississippi’s Highest Earners Are Shaping the State’s Real Estate Market

Homebuyers earning over $500,000 a year represent a very small elite segment in Mississippi’s housing market. An annual income of roughly $383,000 puts a household in Mississippi’s top 1% of earners. Mississippi and West Virginia are the only states where the threshold for the top 1% is under $400,000, so a $500k income is well above the 99th percentile locally.

Overall, Mississippi’s housing market has been characterized by rising prices and tight supply in recent years, especially during the pandemic boom. The median home value statewide is around $170,000, about half the U.S. median, which means Mississippi’s affluent buyers can afford far above the typical home. By early 2025, the median sale price in Mississippi was about $233,000, up significantly from the late 2010s.

Homeownership is common in Mississippi – the state’s homeownership rate (~74–75%) is about 9–10 percentage points higher than the U.S. average – and virtually all households in the $500k+ bracket own homes (often multiple properties). In the 2018–2023 period, high-income buyers in Mississippi increasingly participated in the real estate upswing, buying larger primary homes and investing in second homes during the pandemic-driven housing boom.

Despite being a small group, these wealthy buyers have had outsized influence on certain niches: the luxury home market (top 5% of home values) and high-end vacation areas. Trends among Mississippi’s top earners generally mirror national luxury-market trends, with some local twists.

Home Prices

Mississippi’s highest earners wield considerable influence over the state’s real estate market dynamics, a fact underscored by the sharp spikes observed in recent median home price charts. Wealthy buyers, often equipped with disposable income and financial flexibility, tend to drive prices upward, especially during periods of economic strength, as seen vividly in the dramatic price increase of over 13% in 2022. Their capacity to purchase higher-end properties or invest in multiple homes can create upward pressure on prices statewide, indirectly raising costs even in mid-level markets.

The presence and activities of affluent buyers can also shape market expectations, fueling speculative investments that ripple across various price brackets. For instance, when high earners enter markets previously dominated by middle-class buyers, they often inadvertently drive up competition, pricing some prospective homeowners out entirely. However, when these wealthier individuals shift their attention elsewhere or scale back purchasing activity—as suggested by market corrections in 2023 and 2024—the resulting price adjustments provide temporary relief to more modest-income buyers.

Housing Movement Patterns Among the Affluent

Upsizing Primary Homes

Many high-income Mississippi households in their peak earning years have tended to upsize their primary homes in this period, capitalizing on their resources to purchase larger and more amenity-rich houses. National data shows that home buyers aged 45–59 (often Gen X high earners) had the highest incomes (median ~$130k nationally) and purchased the largest homes (around 2,000 sq. ft.).

In Mississippi, a $500k income far exceeds that national median, so these buyers often seek expansive properties – whether it’s a spacious suburban house in a gated community or an estate on several acres. Especially in the late 2010s, as the economy was strong and interest rates relatively low, affluent families upsized to gain more square footage, home offices, and luxury features.

For example, in the Jackson metro suburbs like Madison or Brandon, it became common to see high-end buyers trading up from a 2,500 sq. ft home to a 4,000+ sq. ft home on a larger lot. This aligns with the trend that middle-aged, high-earning buyers were purchasing some of the largest homes on the market.

Upsizing remained prevalent through about 2021, as even more wealth flowed from stock market gains and stimulus-driven liquidity, allowing top earners to afford dream homes with pools, home theaters, and extensive outdoor living areas.

Downsizing and Lifestyle Changes

At the same time, some of Mississippi’s high-income homeowners – particularly Baby Boomers nearing retirement – have chosen to downsize during 2018–2023. The decision to downsize is often motivated by life stage rather than finances for this group.

Older wealthy Mississippians whose children are grown might sell a large family home in the suburbs and move to a smaller luxury condo or a patio home with less maintenance. For instance, an empty-nester couple in the Gulf Coast area might sell a 5,000 sq. ft house and purchase a 3,000 sq. ft upscale home with modern conveniences, or relocate from a multi-story home to a one-level home for convenience.

However, downsizing among $500k+ earners in Mississippi often doesn’t mean sacrificing quality – they tend to trade into high-end smaller homes or condos with luxury finishes, sometimes in resort-like communities or college towns. Importantly, even those who downsized often reinvested in second homes or other real estate, rather than exiting the market.

Secondary and Vacation Homes

One of the hallmarks of 2020–2022 was a surge in second home purchases by affluent Americans, and Mississippi was part of this trend. With remote work and travel flexibility, many high earners sought vacation properties for recreation or as an investment. Vacation-home sales nationally jumped 16.4% in 2020 (far outpacing the 5.6% growth in total home sales).

In the first four months of 2021, vacation home purchases exploded – up 57% year-over-year – as remote workers grabbed lake houses, beach cottages, and mountain retreats. For Mississippi’s wealthy, popular choices for second homes included beachfront houses or condos on the Gulf Coast, cabins in rural recreational areas, and condos in college towns like Oxford (to enjoy football season and cultural events).

While Mississippi doesn’t boast mountain resorts, it has affordable waterfront and small-town destinations. Many $500k+ earners from Jackson or out-of-state bought weekend homes on the Mississippi Gulf Coast (e.g., Ocean Springs, Bay St. Louis) to enjoy boating and coastal life.

By 2022 and 2023, the vacation-home craze cooled off considerably – rising interest rates and return-to-office plans dampened demand. In Mississippi, some who had considered buying a second home put plans on hold once mortgage rates spiked above 6% in 2022. Still, compared to 2008–2017, the 2018–2023 period saw many more high-income households owning secondary homes, reflecting a shift in priorities (valuing experiences and remote-work flexibility) that was less feasible in the earlier decade.

Types of Properties Purchased

New Construction and Custom Homes

A significant portion of homes purchased by the $500k+ income group were newly built or custom-built homes, reflecting a preference for modern amenities and minimal renovation hassle. High-income buyers in Mississippi often have the means to commission custom construction or buy into upscale new developments.

For example, in Madison County (one of the wealthiest areas in the state), there was robust development of gated communities and golf course neighborhoods in the late 2010s. These buyers favored features like open floor plans, smart home technology, energy-efficient construction, and luxury finishes.

By 2020, turnkey luxury – fully move-in-ready homes with high-end appliances and resort-style features – became almost an expectation at the top end. Builders responded by offering homes with bonus rooms, home offices, and outdoor entertainment spaces to cater to affluent buyers’ tastes. The trend toward “bigger and newer” was tempered slightly by rising construction costs in 2021–2022, but many wealthy buyers were willing to pay a premium for brand-new homes that met their specifications.

Luxury Homes and Estates

When discussing this income bracket, we are essentially talking about Mississippi’s luxury real estate market. Luxury homes are often defined as the top 5% by value in a given area. In Mississippi, those can include homes in the high hundreds of thousands to multi-million dollar range.

These properties range from sprawling estates in the countryside to elegant mansions in exclusive suburbs. Some examples of what high earners bought in 2018–2023 include: waterfront mansions on the Gulf Coast, equestrian properties with substantial land, and executive homes in the Jackson metro with 5+ bedrooms and extensive landscaping.

The median luxury home price nationally hit $1.225 million in early 2024; Mississippi’s luxury prices are generally lower than the national median, but the gap has been narrowing. Realtors report that the number of home sales in Mississippi above $1 million grew during this period, especially in 2020–2021 when affluent out-of-state buyers entered the market.

High earners showed interest in historic luxury homes as well – for instance, antebellum homes in Natchez or stately historic houses in Jackson’s Eastover neighborhood. In a notable trend, several of Natchez’s famous antebellum mansions changed hands around 2021–2022, bought by wealthy individuals from outside Mississippi.

Condominiums and Urban Properties

While single-family homes dominate Mississippi’s high-end market, there’s a niche of affluent buyers purchasing luxury condos or townhouses, particularly in specific locales. The prime example is Oxford, home of the University of Mississippi, which has emerged as a hotspot for luxury condo development.

Wealthy alumni and professionals have been buying upscale condos in Oxford to use during football season or as retirement homes in a vibrant college town. In 2023, a St. Louis developer announced a $50 million plan to build 40 luxury condos in Oxford – “The Magnolia Collection” – targeting high-end buyers looking for a presence in the city.

Similarly, in downtown Jackson, there have been a few boutique condo projects (though on a much smaller scale) aimed at executives and legislators seeking a convenient pied-à-terre. Overall, condos are a less common purchase for Mississippi’s $500k earners (compared to, say, Florida), but the period did see growth in luxury multi-family properties as an option.

Vacation and Recreational Properties

Second-home buyers often went for particular types of properties: waterfront homes, lake cabins, and resort-area houses. On the Gulf Coast, high earners bought beachfront homes in communities like Pass Christian or Ocean Springs, or high-rise condo units with Gulf views in Biloxi.

Around inland lakes (such as Barnett Reservoir near Jackson, or Pickwick Lake on the Mississippi/Alabama/Tennessee border), affluent buyers picked up lakefront houses for weekend getaways. Another type of purchase was hunting land with lodges – some wealthy individuals with $500k+ incomes invested in rural land that comes with a home or lodge, using it for hunting and recreation.

Financing Methods: Cash vs Loans

All-Cash Purchases

A substantial share of homes bought by this income bracket were paid for in cash. Nationwide, affluent buyers are far more likely to pay cash – often to avoid the hassle of a mortgage or to gain an edge in competitive bidding. For example, at the start of 2024 a record 47% of luxury U.S. home sales were cash deals.

During the pandemic boom, second-home buyers in particular leaned toward cash: in early 2021, 53% of vacation home purchases were all-cash, compared to only about 22% cash sales in the overall market. We can infer a similar pattern in Mississippi: many of the high-end transactions (especially for second homes or investment properties) were cash buys.

Even when not paying 100% cash, almost all high-income buyers made large down payments. In Mississippi’s context, where home prices are lower than national averages, a $500k+ income household could relatively easily pay cash for a median-priced home.

For primary residences, some chose to finance due to low interest rates (in 2020–21, mortgages were ~3%), but for second homes or investment purchases, cash was very common. By 2022–2023, as mortgage rates rose above 6–7%, the incentive to pay cash grew even stronger for those who had the funds, to avoid high interest costs. In summary, cash has been king among high-end buyers, and Mississippi’s luxury market saw a much higher cash-buy rate than the overall market.

Conventional vs. Jumbo Loans

When $500k+ earners did finance their home purchases, they frequently needed jumbo loans. A jumbo loan is one that exceeds the conforming loan limit set by Fannie Mae/Freddie Mac (about $726,200 in 2023, and ~$548k in 2018, with yearly adjustments).

In Mississippi, because home prices are generally low, the proportion of total loans that are jumbo is smaller than in high-cost states. However, in absolute terms any purchase of a home valued around $800k, $1M, or more requires a jumbo mortgage if financed.

Mississippi’s high earners, if taking a loan for such properties, often worked with private banking or national lenders offering jumbo mortgage products. These loans typically require excellent credit, large down payments, and income sufficient to cover the big monthly payments – criteria which $500k+ earners handily meet.

During 2018–2021, interest rates on jumbo loans were attractive, sometimes even lower than conventional rates, which encouraged some wealthy buyers to finance instead of tying up capital. By contrast, in 2022–2023, jumbo rates climbed, leading a larger fraction of these buyers to just pay cash or put down very large down payments to minimize the loan.

Home Equity and Specialized Financing

Some high-income buyers who already owned a home leveraged their existing equity or assets. It wasn’t uncommon for a wealthy homeowner to use a HELOC (home equity line of credit) on their primary residence to help purchase a second home, or to do a cash-out refinance in the low-rate environment to free up cash for another purchase.

Others utilized family trusts or business funds if the property was partly for investment (for example, buying land through an LLC). These methods are harder to quantify but are part of the financial toolkit available to affluent buyers that most middle-class buyers wouldn’t use.

Regional Hotspots for Luxury Real Estate

Within Mississippi, the homebuying patterns of high-income households show clear regional concentrations. The state’s wealth and high-end real estate activity are not evenly distributed – they are clustered in a few key areas where $500k+ earners tend to live or invest:

Jackson Metro & Suburban Enclaves

The Jackson metropolitan area (Hinds, Madison, and Rankin counties) is a primary locus of high-income homeownership. While the city of Jackson itself has economic challenges, the suburban communities – particularly Madison County (Ridgeland, Madison, and the Annandale area) and parts of Rankin County (Flowood, Brandon) – are known for their affluent populations.

Madison County consistently ranks as one of the richest counties in Mississippi; for instance, the 39110 ZIP code (Madison) has a mean household income around $168k, the highest in the state. High earners here purchase executive homes in upscale subdivisions (like Reunion or Bridgewater in Madison) often priced from the high six figures into seven figures.

These neighborhoods feature golf courses, lakes, and private clubs that attract wealthy professionals (doctors, attorneys, business owners from the capital region). The Jackson area saw steady high-end sales from 2018–2023, with some slowdown in 2022 when crime and infrastructure issues in Jackson proper prompted a few affluent residents to relocate (either further into the suburbs or out of state).

Still, the Jackson suburbs remained a hotspot: large new homes in subdivisions near the Ross Barnett Reservoir and in Northwest Rankin continued to be built and bought by top earners. The presence of major medical centers, corporate headquarters, and government in the capital region feeds this market of high-income buyers.

Gulf Coast (Biloxi, Gulfport, Bay St. Louis)

The Mississippi Gulf Coast is another key area, particularly for second homes and retirees with high incomes. Affluent buyers from New Orleans, Mobile, or even Atlanta have historically bought vacation homes on Mississippi’s coast due to its relative affordability and charm.

From 2018–2023, coastal communities like Bay St. Louis, Pass Christian, and Ocean Springs saw an uptick in luxury real estate activity. These towns offer beachfront properties, marinas, and a laid-back lifestyle that appeals to wealthy buyers. In Biloxi and Gulfport, casino executives and businesspeople also form part of the high-income homeowner group, buying luxury condos and homes near the water.

The Gulf Coast market for luxury homes actually strengthened through 2019–2021, boosted by the vacation-home boom. Some coastal counties were effectively behaving like resort markets. However, by 2023, higher insurance costs (for wind and flood) and hurricane risks added to the carrying cost of these homes, which slightly tempered enthusiasm among even wealthy buyers.

College Towns (Oxford and Starkville)

Oxford, home of Ole Miss, punches above its weight in attracting wealthy buyers. It has become a cultural and intellectual hub with a strong appeal to alumni and retirees from across the South. Oxford’s Lafayette County has one of the highest concentrations of wealth per capita in Mississippi (fueled by university faculty, physicians at the medical facilities, and incoming retirees).

The trend of affluent individuals buying second homes or retirement homes in Oxford accelerated from 2018 to 2023. This is evidenced by projects like the Magnolia Collection condos and numerous downtown luxury townhomes geared toward those who want a walkable lifestyle near the Square.

Buyers include not just Mississippians, but people from Memphis, Nashville, and beyond. A $500k+ income household can comfortably afford a luxury condo in Oxford (where prices for upscale units might range from $400k to $1M). They often maintain another residence elsewhere, making Oxford either a part-time abode or future retirement plan.

Northern Suburbs (DeSoto County)

DeSoto County, just south of Memphis, has grown rapidly and gained a cohort of high-income residents (many working in Memphis but living in Mississippi). Areas like Olive Branch, Southaven, and Hernando have subdivisions with large homes owned by executives, pilots, and professionals who commute across state lines.

During 2018–2023, DeSoto continued to attract wealthier families thanks to good schools, new housing, and proximity to the Memphis metro’s high-paying jobs. High earners in DeSoto County typically buy modern brick mini-mansions on large lots (the kind of development that has been booming since the early 2000s in that area).

One difference in recent years is that even some Memphis-based professionals who could afford more expensive Tennessee real estate chose DeSoto for the lower taxes and new construction – effectively importing high earners into Mississippi. Thus, the northwest corner of Mississippi has become a notable affluent enclave in its own right.

Demographic Profile of High-Income Homebuyers

Age and Life Stage

High-income homebuyers in Mississippi during 2018–2023 have generally been in older age brackets – largely Gen X (40s and 50s) and Boomers (60s), with a smaller share of older Millennials in their late 30s who achieved exceptional incomes. This mirrors national trends where the typical repeat homebuyer’s age has risen into the 50s.

With an annual income of $500k or more, we are often looking at individuals who are well-established in their careers or possibly near retirement after a very lucrative career. First-time buyers are rare in this bracket (most first-time buyers are much younger and lower-income). Instead, these are move-up buyers or secondary home buyers.

Many are in a stage of life where they have families – or they may be empty nesters with grown children but still working full time (e.g., a 60-year-old hospital executive). Data indicates that 66% of buyers aged 45–59 were married couples, and this aligns with Mississippi’s high earners: they often are dual-income married couples, which boosts household income into that $500k+ range.

Professional Background

While specific Mississippi data on professions of $500k earners is not published, we can infer the common professions from the makeup of the state’s economy and typical high-income roles.

Medical professionals are a significant group – top surgeons, specialists, and successful physicians often earn in the mid-six-figures. Jackson, for instance, has major hospitals and medical centers (UMMC, St. Dominic, Baptist) that employ well-paid doctors and executives.

Corporate executives and business owners form another chunk: Mississippi has regional headquarters of companies (for example, Ingalls Shipbuilding on the coast has high-paid managers, Nissan’s plant in Canton has executives, etc.), and many small business owners (in sectors like manufacturing, agriculture, casinos, and real estate) can earn very high incomes.

Lawyers and lobbyists in Jackson who are partners at major firms or have successful practices might also reach this income tier, as can finance professionals (though Mississippi is not a finance hub, there are wealthy bankers and investors).

We should also mention inherited wealth and family businesses: some high-income households might not have a single salary of $500k, but rather investment income or business distributions that sum to that level. These families (perhaps multi-generational landowners or investors) definitely play a role, often buying legacy properties (like plantations or large farms) and high-end homes as part of their portfolio.

In short, the typical $500k+ homebuyer in Mississippi from 2018–2023 might be a married couple in their 40s or 50s, college-educated, working as a doctor, executive, or business owner. They likely have children (or recently became empty nesters), and they seek homes that provide either more space for family or opportunities for leisure (like a second home).

It’s worth noting that Mississippi’s top 5% of households have an average income around $255k, which highlights just how exceptional the $500k+ earners are. They stand out even among the state’s “rich,” often bringing out-of-state money or specialized income streams that set them apart from the merely affluent.

Comparing 2008–2017 vs. 2018–2023: Key Differences

Looking back at the previous decade (2008–2017) helps put recent trends in perspective. The 2008 housing crash and subsequent recession had a chilling effect on homebuying across the board, including the high end. Early in that period (2008–2011), even wealthy Mississippians were cautious – luxury home sales slowed and prices dipped.

One clear difference is the sheer scale of the luxury market’s growth post-2018. Data shows that 2021 was an explosive year for luxury home sales nationally, far above any year in the prior decade. In Mississippi, while our absolute numbers are small, the pattern holds: more high-end homes were sold in 2020–2021 than at any time in recent memory.

The COVID-19 pandemic paradoxically boosted high-end buying – wealthy households, largely insulated from job loss and benefiting from rising asset values, doubled down on real estate, whether upgrading their primary residence or acquiring second homes. This was not a factor in 2008–2017 (if anything, 2008’s crisis did the opposite).

In property types and preferences, 2008–2017 saw a lot of high-income buyers focused on classic status symbols: large suburban homes, maybe some country property. Vacation home purchases were more muted. By contrast, 2018–2023 saw the normalization of owning multiple homes for the affluent.

Another shift was in design and taste: The 2018–2023 buyer wanted turnkey, modern amenities. Around 2010, luxury buyers often had to undertake renovations (because new construction had stalled after 2008). By the later period, more new inventory was available, and buyers expected perfection.

In the financing climate, both periods had low rates, but the 2018–2021 ultra-low rates (some below 3%) were unprecedented. This encouraged even the rich to leverage cheap debt for bigger purchases. In contrast, after 2022, rates spiked – something not seen in the prior decade.

In market psychology, 2008–2017 saw a conservative mindset regarding housing – coming out of a crash, many prioritized restoring portfolios and were careful in real estate. In 2018–2023, the mindset became more aggressive or expansive: housing was seen as a strong asset, and there was a bit of a “you only live once” mentality during the pandemic that spurred luxury purchases of dream homes and vacation retreats.

In conclusion, the 2008–2017 period for Mississippi’s high-income homebuyers was about recovery and caution, with steady, modest growth in luxury buying toward the end. The 2018–2023 period was about expansion and transformation – a boom in high-end activity culminating in new peaks and then adjusting to new economic conditions.

References

• Mississippi – Profile data – Census Reporter
• Luxury-Home Sales Sink 38%, the Biggest Decline on Record – Redfin News
• The Typical U.S. Luxury Home Costs More Than Ever Before – Redfin News
• Vacation Home Sales Surges During Pandemic – National Association of REALTORS®
• What It Takes to Be in the Top 1% by State – 2023 Edition – Nasdaq (SmartAsset)
• St. Louis-based Savoy Properties plans $50M luxury condos Oxford, Mississippi – St. Louis Business Journal
• Welcome Home: Trio of historic homes welcome new owners – Natchez Democrat
• Mississippi Income Statistics – Income by ZipCode (Census ACS Data)
• What is the homeownership rate in Mississippi? – USAFacts
• Mississippi Housing Market: 2025 Home Prices & Trends – Zillow
• Average House Price by State in 2024 – The Motley Fool
• Home Buyers and Sellers Generational Trends – National Association of REALTORS®
• Vacation, Resort, and Second Homes – National Association of REALTORS®
• Luxury Gulf Coast Properties: What Today’s High-Income Buyers Want – Search The Gulf
• 2 Best Jumbo Loans in Mississippi (2025) – Biglaw Investor
• Are Cash Offers for Houses Legit or Scams? – FastExpert
• How Much You Need to Be in the Top 5% in Every State – Yahoo Finance
• Home Buyer Average Age Hits Record High at 56 – Builder Magazine