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There are a record number of areas in the United States where the value of a “typical” home is $1 million or more.
In February, the country had 550 “million-dollar” cities, or areas where the “typical” home was worth $1 million or more, according to a new analysis by Zillow. This represents an increase of 59 cities from 2023, and exceeds the previous record of 522 such cities when home values peaked in 2022.
The increase in million-dollar cities is the result of the impact of mortgage caps, which have prevented homeowners with very low interest rates from listing their properties for sale, said Skyler Olsen, chief economist at Zillow. The dynamic keeps supply limited in some markets and pushes up selling prices for those few available properties.
Some places have lost their “Million Dollar City” status.
California has the largest number of million-dollar cities, with 210. That means 12 more cities than a year ago and more than the next five states in second place — New York, New Jersey, Florida, Massachusetts and Colorado — combined, Zillow said. is found.
Although there are more million-dollar cities this year, the record amount is tied to how the impact of the shutdown will impact the region's supply, according to Olsen.
“The seller is interest rate sensitive [as buyers]”, She said.
At the same time, some regions lost their “million dollar” status. In places where interest rates among many homeowners are already between 6% and 7%, the stabilization effect is not as strong.
Such places are seeing an increase in supply as the number of sellers wanting to put homes on the market increases, Olsen said.
“In those places where we've lost multi-million dollar cities, they're not isolated, and they have a lot of new construction which helps with that picture as well,” she said.
Florida lost $3 million cities — Siesta Key, Santa Rosa Beach and Sanibel — while Texas lost Sunset Valley and Volente, two areas near Austin.
The channel said it is difficult to say whether this is the trend. Florida and Texas remain home to high-ticket luxury markets, with cities valued at $32 and $14 million, respectively, in February, according to Zillow data.
Naples, Florida also boasts the most expensive home for sale in the United States, which went on the market in February for $295 million.
