A typical home is now worth more than $1 million in 550 U.S. cities, a figure that has grown 12% over the past year, Zillow reports.
Many of the country’s most expensive real estate markets are located in larger metropolitan areas. The New York City area alone has 106 cities with home values above $1 million, up from 82 a year ago. (This metro includes parts of New Jersey and Pennsylvania.)
According to new data from Zillow, which estimates the value of existing homes to create a home value index, 210 of the cities with homes worth more than $1 million are in California, up from 198 last year.
After New York City, the San Francisco and Los Angeles metropolitan areas are the cities with the most dollars, with 69 and 63 dollars, respectively. The tally was unchanged for San Francisco from a year ago, while the Los Angeles area gained seven.
Overall, the number of cities where the typical home is worth at least $1 million increased by 59 from a year ago, when the count was 491.
The typical value of a home in the United States increased 4.2% over the past year, from $335,200 to $349,200. While rising values mean that many homeowners have gained in equity, it also means that mortgages are unaffordable for many potential buyers, especially considering that current mortgage rates are still nearly 7%.
“The housing market is tight with few homes available and competition is still high for attractive homes,” Zillow said in a report. “This competitive pressure is pushing home values higher in the United States”
States with the most $1 million cities
Here is a list of the states that have the most cities where the typical home is worth $1 million or more:
- California: 210 cities (+12 in the last year)
- New York: 66 cities (+8)
- New Jersey: 49 cities (+14)
- Florida: 32 cities (-2)
- Massachusetts: 31 cities (+4)
- Colorado: 21 cities (unchanged)
- Washington: 18 cities (+2)
- Hawaii: 17 cities (+1)
- Texas: 14 cities (-1)
- Maryland: 10 cities (+2)
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