Surge in Million-Dollar Cities Signals Opportunities, Challenges for Advisors

The U.S. now has 550 "million-dollar" cities, where the median home value surpasses the million-dollar mark, a new Zillow analysis finds.

By Rethinking65

The United States now has 550 “million-dollar” cities, where the median home value surpasses the million-dollar mark, a new Zillow analysis finds.

The number of cities with median home values over $1 million rose by 59 compared with February 2023.

Anushna Prakash, an economic research data scientist at Zillow, acknowledges the persistent affordability challenges but notes that escalating prices have not dampened buyer enthusiasm. Prakash anticipates increased buyer activity in the upcoming season, fueled by both more listings and the potential for reduced mortgage rates, which could further drive up prices, particularly in affluent locales.

While prices in million-dollar cities dropped more than in other locations when home values fell in late 2022, they have largely mirrored the national market’s trajectory over the past year. The median home value across the U.S. has surged by 4.2% annually, with million-dollar cities boasting a slightly higher growth rate of 4.6%.

California emerges as the epicenter of million-dollar cities, boasting 210 such locales, eclipsing the combined total of the next five states. New Jersey also has witnessed a notable surge, adding 14 million-dollar cities in the past year, while Florida, Texas and Delaware have experienced a net decline.

The New York metro area saw the biggest jump in the number of million-dollar cities, rising to 106 from 82, the analysis found.

Financial advisors navigating this dynamic real estate landscape are presented with both opportunities and challenges. As affluent clients seek investment opportunities in burgeoning markets, advisors must leverage sophisticated strategies to maximize returns while mitigating risks associated with volatile housing markets.

Latest news

Charitable Contribution Tax Scheme Ends in 8-Year Prison Sentence

The scheme, "The Ultimate Tax Plan," purported to offer high-income clients a way to reduce their taxes through false charitable deductions.

Soaring Car Insurance Costs Hit New-Car Buyers

In one of the cruel twists of an inflation-weary U.S. economy, car prices are coming down — but insurance on them is going way up.

401(k) Balances Soared in 2023, Especially Among Younger Savers

Strong financial markets contributed to gains in 401(k) account balances in 2023, but plan participation declined, says T. Rowe Price study.

First Female SEC Commissioner Dies at 86

Roberta Karmel, nominated by President Jimmy Carter, enforced, practiced and taught securities law for 60 years before retiring in 2022.

‘No Landing’? Investors Seem to Think So

Morgan Stanley equity strategists say investors have been bracing for a "soft landing" for the economy, but now see a "no landing" scenario.

RIA Network Names Regional Director

Sanctuary Wealth, an advisor network with $30 billion in assets, appoints a former Wells Fargo and UBS executive as a West Coast director.