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Number of ‘million-dollar cities’ hits a new record in the US

The number of US cities where the typical home value exceeds $1 million has reached a record 550, according to new figures.

The data, from a recent Zillow analysis, revealed that’s an increase of 59 cities compared to 2023, highlighting a significant shift in the housing market dynamics.

Despite challenges in affordability, the housing market’s tightness—with few homes available—has sustained a rise in home values.

California leads with the highest number of “million-dollar cities,” far outpacing New York and New Jersey.

There are 210 million-dollar cities in California, which is up from 198 in 2023.

New York has 66 million-dollar cities, while New Jersey has 49.

On the flip side, Florida, Texas, and Delaware have seen a net decrease in such cities over the past year, with notable drops in specific areas.

Florida has two fewer million-dollar cities at 32, while Texas and Delaware have one less.

Anushna Prakash, an economic research data scientist at Zillow, expressed optimism for buyers despite the ongoing affordability issues.

“Affordability is still a big challenge for buyers, but that hasn’t stopped prices from growing,” she said.

“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 faced more volatility than the typical US city when home values dipped in late 2022, they’ve largely moved in tandem with the national market over the past year.

Currently, the typical US home value has risen by 4.2 per cent year-on-year, with a slightly higher increase of 4.6 per cent in million-dollar cities.

The distribution of these cities reveals interesting geographical trends.

California boasts 210 million-dollar cities, a figure that eclipses the combined total of the next five states.

New Jersey saw the most significant growth, adding 14 new cities to the list.

Metropolitan areas have also seen shifts, with the New York City metro area leading with 106 million-dollar cities, followed by San Francisco and Los Angeles.

These changes underscore the continuous evolution of the housing market, with Zillow providing tools such as an affordability calculator and search filters to aid buyers navigating such million-dollar landscapes.

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Kylie Dulhunty

Kylie Dulhunty is the Editor at Elite Agent.