According to a new Zillow analysis, there are 45 more U.S. cities with a typical home value in the $1 million-plus range than there were a year ago—the largest increase in at least a decade. There are currently 312 million-dollar cities, an increase of 104 in the last five years—and nearly half of those crossed the million-dollar threshold in 2020 due to the market frenzy caused by the pandemic.
Geographically, 70 percent of these million-dollar homes are concentrated within nine coastal metro areas. Among them, 61 are in the San Francisco metro area, 51 are around New York City and 39 are in the Los Angeles area. The metro areas of San Jose (20 cities), Boston (11), Miami-Fort Lauderdale (11), Seattle (9) and Washington, D.C., (8) also have multiple cities where the typical home price exceeds $1 million.
“In 2020, home values soared nationwide because of incredible demand across all price tiers, which we expect to continue well into 2021,” says Zillow senior economist Chris Glynn. “Despite the label, there are homes available in these communities for less than $1 million, but buyers must be realistic about their wish list and act quickly in the current market, especially since homes are selling in a matter of days in many places. For sellers, it is possible to capitalize on the recent growth in these markets and relocate to far less-expensive markets—particularly with an increase in remote work offering flexibility in the job market.”
Where are the highest home values across the U.S.? At the top of the list is Atherton, Calif, near San Francisco, which has a typical home value of $6.6 million. Coming in second is Hunts Point, Wash., with a typical home value of around $6 million. These are followed by Sagaponack, N.Y., and Jupiter Island, Fla., which have typical home values of over $5 million.
“An increased demand in places like Potomac and other more expensive areas around the county is happening because of the pandemic-driven need for more indoor and outdoor space, home offices, pools, and more,” said Samer Kuraishi, a Best of Zillow Premier Agent and president of The ONE Street Company, a boutique real estate firm in Washington, D.C. “We’re seeing more buyers from afar using technology to tour homes and buy ‘sight unseen.’ The sellers who have a great media package, including a floor plan with dimensions, virtual staging and 3D imaging, have the edge in such a competitive market.”