These 10 U.S. Cities Have The Most $1M Homes

Benzinga
03-07

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

There was a time when $1 million homes were only found in the most expensive enclaves of America's major cities, but an increasing number of American cities are seeing a rapid rise in the number of homes worth over $1 million. A LendingTree report from November 2024 shows that 10.57% of owner-occupied houses in America's 50 major metropolitan areas were worth more than $1 million in 2023.

That's an increase of 2.86% over 2022's 7.71%. It's 1.32 million homes in raw numbers, which makes for an average of 26,400 in each of America's 50 biggest metro areas. However, the study, which Lending Tree compiled using U.S. Census Data, showed that the distribution of $1 million homes is far from even. Seven out of 10 of them are on America's Pacific or Atlantic Coasts.

Don't Miss:

  • Many don’t know there are tax benefits when buying a unit as an investment — Here’s how to invest in real estate by mirroring BlackRock's big move
  • CEO of Integris gathered a team of senior investment managers who have $34.22 billion in combined owned and managed assets in the West Coast — here’s how to invest in their private credit fund that targets 12% annual interest rate.

The 10 American metropolitan areas with the highest percentage of owner-occupied homes valued over $1 million are:

  • San Jose, California – 71.57%
  • San Francisco – 56.57%
  • Los Angeles – 36.42%
  • San Diego – 34.83%
  • Seattle – 25.96%
  • Boston – 17.22%
  • New York – 16.17%
  • Washington, D.C.- 14.04%
  • Denver – 12.40%
  • Miami – 11.43%

 The top four cities on the list all being from California illustrates the gravity of the Golden State's housing affordability crisis. When averaged together, 44.02% of the owner-occupied homes in California's largest metro areas are worth more than $1 million.  Lending Tree's data also showed that Sacramento (9.44%) and Riverside (6.22%) are in the top 20. They used to be cities Californians flocked to because of low housing prices.

The irony is that California's once ample housing supply drew millions of Americans to its biggest metropolitan areas for much of the 20th century. To be certain, millions of people still move to California seeking high-salaried positions in tech and entertainment hubs like San Francisco and Los Angeles. Unfortunately, they are finding it exponentially more difficult to navigate California's housing landscape than their predecessors.

Trending: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100.

LendingTree, and many experts who observe America's housing market, agree that the surge in home values is largely due to a lack of availability. Many of the metropolitan areas on Lending Tree's top 10 list underwent rapid expansion throughout the 20th century. Today, the vacant land necessary to build new single-family home communities is in short supply and many local zoning laws prevent the construction of multi-family developments.

That scarcity puts a high price premium on the available housing supply and that also spills over into occupied homes. Every time a property in any neighborhood sells for a higher price, comparable homes in the area get a bump in value. On the reverse side of the equation, the people occupying homes worth over $1 million  have very little incentive to sell.

See Also: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.

After all, who wants to sell their house for $1 million and find themselves priced out of their neighborhood? The prospect of paying an APR near 7% isn't appealing either. So, the homeowners stay put while their property appreciates.  The equity they get during this process is also an effective hedge against inflation in many cases.  This is why homeowners are locked in the housing market while prospective buyers increasingly find themselves locked out.

 If there is any good news, it's that America still has plenty of metropolitan areas where median home values are well below $1 million LendingTree's study showed that Cleveland (1.09%), Buffalo, New York (1.16%), and Louisville, Kentucky (1.44%) are the top three metropolitan areas with the smallest concentration of owner-occupied homes with median values over $1 million.

Read Next:

  • If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?
  • Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. 

This article These 10 U.S. Cities Have The Most $1M Homes originally appeared on Benzinga.com

免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。

熱議股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10