There are now 550 million-dollar cities in the United States, up from 491 last year. Nearly half of them live in California, according to a new analysis from Zillow.
Attend Inman Connect in Las Vegas July 30-August 1! Seize the moment and take control of the next era of real estate. Through immersive experiences, innovative formats and an unparalleled lineup of speakers, this gathering becomes more than just a conference, it becomes a collaborative force shaping the future of our industry. Grab your tickets now!
The U.S. now has a new high of 550 “million dollar” cities, where typical homes are worth at least $1 million, one from Zillo show.
During the same period last year, when home prices fell due to rising mortgage rates and economic uncertainty, only $491 million fell in cities.
Today, tight inventory and competition for the most attractive homes on the market have pushed home values higher and higher.
However, this spring buying season has seen more and more new listings enter the market as homeowners emerge from “rate lock.” If mortgage rates continue to fall later this year, more buyers entering the market and increased demand could push prices higher.
As U.S. home prices fell in late 2022, million-dollar cities were hardest hit, but their home price gains last year were largely similar to other U.S. cities. Last year, the value of the average U.S. home grew by 4.2%, while the median home value in million-dollar cities grew at an annual rate of 4.6%.
California is home to nearly half of the nation’s million-dollar cities, with a total of 210 million dollar cities. Last year, the state added 12 million-dollar cities, second only to New Jersey, which added 14 million-dollar cities, bringing the state’s total to 66 million-dollar cities.
Last year, only three states saw net losses in million-dollar cities: Florida, Texas and Delaware. With the addition of Palmetto Bay Village (near Miami), Siesta Key, Santa Rosa Beach, and Sanibel disappear from the Florida million-dollar list. In Texas, typical home values fell below $1 million in Sunset Valley and Warrent, near Austin, while values rose above $1 million in Bel Air (a suburb of Houston). Dewey Beach, Delaware also fell off the Million Dollar Cities list.
By metropolitan area, New York City has the most million-dollar cities of any other metropolitan area. The metro area, which includes parts of New Jersey and Pennsylvania, is home to $106 million in cities, 24 more than last year. In second place is the San Francisco metropolitan area with $69 million in cities, followed by Los Angeles with $63 million in cities.
Million-dollar cities are concentrated in coastal states, and the 11 metropolitan areas with the most million-dollar cities are located in these states. Denver and Dallas, with $7 million and $8 million respectively, are the top metropolitan areas in non-coastal states.
The number of million-dollar cities in Los Angeles grew significantly last year, adding seven new cities. Boston added four new million-dollar cities, and San Diego, Chicago and San Luis Obispo added three each.
Get Inman’s Luxury Lenses Newsletter Delivered directly to your inbox. Every Friday is an in-depth look at the biggest news in high-end real estate. Click here to subscribe.
Email Lillian Dixon
