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.
