Low inventory is keeping competition high and
home values rising
- There are currently 550 U.S. cities where the typical home
value is $1 million or more, up from
491 a year ago.
- California easily boasts the
most million-dollar cities, followed by New York and New
Jersey.
- Florida, Texas and Delaware are the only states with a net loss
in million-dollar cities over the past year.
SEATTLE, April 2,
2024 /PRNewswire/ -- The U.S. has a record-high
550 "million-dollar" cities — cities where the typical home is
worth $1 million or more — a new
Zillow® analysis shows. That is 59 more million-dollar cities than
a year ago,1 reversing losses from when home values
were wobbling this time last year.
A tight housing market with few homes available has kept home
values rising, even while affordability challenges have hampered
buyers. The good news for buyers in the market this home-shopping
season is that new listings are on the rise as the effects of "rate
lock" — occurring when homeowners are financially incentivized to
keep their current home because of the low rate on their current
mortgage — are weakening, and the hope for lower mortgage rates
later this year may mean a second wave of buyer demand this
summer.
"Affordability is still a big challenge for buyers, but that
hasn't stopped prices from growing," said Anushna Prakash, an
economic research data scientist at Zillow. "Buyers this spring are
going to see more options to choose from, but they'll also see a
lot of other buyers wandering through the same open houses.
Competition will stay fierce, especially for the most attractive
and well-priced homes. If mortgage rates drop later this year, as
many expect, we may see a surge in million-dollar cities as even
more buyers jump in and drive prices higher."
While million-dollar cities were affected more than the typical
U.S. city when home values fell in late 2022, they have generally
tracked with the national market over the past year. The typical
U.S. home is worth 4.2% more than it was a year ago. In current
million-dollar cities, the median year-over-year home value growth
is 4.6%.
California is home to
210 million-dollar cities, more than
the next five states combined. New
Jersey has added the most million-dollar cities over the
past year, gaining 14.
Florida, Texas and Delaware are the only states to have a net
loss in million-dollar cities over the past year. Florida lost three
million-dollar cities — Siesta
Key, Santa Rosa Beach and
Sanibel — while adding one, the
Village of Palmetto Bay, near
Miami. Texas lost two million-dollar cities in the Austin area, Sunset
Valley and Volente, and added Bellaire, outside of Houston. The typical home in Delaware's Dewey
Beach fell below the million-dollar cutoff.
The New York City metro area,
which includes parts of New Jersey
and Pennsylvania, has the most
million-dollar cities with 106 — 24 more than a year ago.
San Francisco is next with 69,
followed by Los Angeles with 63.
Other than the New York City metro
area, Los Angeles gained the most
million-dollar cities over the past year, adding seven.
Boston added four during that
time, and San Diego, Chicago and San Luis
Obispo each added three.
Whether a buyer or renter is searching for a home in a
million-dollar city or somewhere with home values closer to
average, Zillow has tools that can help.
An affordability calculator can help a buyer better
understand what they can afford and set a budget. Buyers can then
use Zillow to search for homes filtered for a monthly cost they are
comfortable with, instead of only by list price. Buyers can also
find and connect with a knowledgeable real estate
professional and loan officer on Zillow to help guide
them through the home-buying process.
Million-Dollar
Cities by State
|
State
|
$1 Million Cities –
February 2024
|
$1 Million Cities –
February 2023
|
California
|
210
|
198
|
New York
|
66
|
54
|
New Jersey
|
49
|
35
|
Florida
|
32
|
34
|
Massachusetts
|
31
|
27
|
Colorado
|
21
|
21
|
Washington
|
18
|
16
|
Hawaii
|
17
|
16
|
Texas
|
14
|
15
|
Maryland
|
10
|
8
|
Virginia
|
7
|
5
|
South
Carolina
|
6
|
6
|
Connecticut
|
6
|
5
|
Minnesota,
Utah
|
6
|
4
|
Illinois
|
6
|
3
|
Missouri
|
5
|
5
|
Nevada, North Carolina,
Wyoming
|
4
|
4
|
Montana
|
4
|
3
|
Arizona
|
4
|
2
|
Idaho,
Tennessee
|
3
|
3
|
New
Hampshire
|
3
|
2
|
Ohio
|
2
|
2
|
Pennsylvania
|
2
|
0
|
Delaware
|
1
|
2
|
Georgia, Kansas, Maine,
Michigan, Rhode Island, Wisconsin
|
1
|
1
|
Metro Areas With the
Most Million-Dollar Cities
|
Metro
Area
|
$1 Million
Cities
– February 2024
|
$1 Million
Cities
– February 2023
|
New York, NY
|
106
|
82
|
San Francisco,
CA
|
69
|
69
|
Los Angeles,
CA
|
63
|
56
|
Boston, MA
|
23
|
19
|
San Jose, CA
|
18
|
18
|
Seattle, WA
|
17
|
15
|
Miami–Fort
Lauderdale, FL
|
17
|
16
|
Washington,
DC
|
14
|
12
|
San Diego,
CA
|
10
|
7
|
Santa
Maria–Santa Barbara, CA; Santa Rosa, CA
|
9
|
9
|
About Zillow Group:
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Zillow affiliate.
1 February 2023 Zillow Home Value Index (ZHVI)
figures are unavailable for 11 cities with ZHVI above $1 million for February
2024.
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SOURCE Zillow