Million-dollar homes are still the exception, not the norm, in most of the U.S.
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California, a state grappling with a homelessness crisis amid serious affordability challenges, is home to four of the five metro areas with the highest share of million-dollar homes. That only exacerbates a nationwide increase in home prices due to scant inventory.
Overall, U.S. home prices rose 3.2 percent in August, according to the S&P Case-Shiller index. According to data from the U.S. Census Bureau, the average sales price of new homes sold in September was $362,700. The median price was $299,400.
According to a recent analysis by LendingTree, only about 5.86 percent of owner-occupied homes across the nation’s largest metro areas are valued at $1 million or more. Here’s a look at the top five cities where the share of million-dollar homes is far higher, according to LendingTree.
San Jose, California
In San Jose, California, there are 208,745 homes valued at $1 million or more — out of 369,724 overall housing properties. That means more than 56 percent of units are worth at least $1 million.
In nearby San Francisco, more than 42 percent of houses are valued at $1 million or more. Of 933,904 overall housing units, nearly 395,860 have seven-figure values.
The median value of owner-occupied homes in the city is $910,300.
Los Angeles has more than 2 million overall housing units, and 19 percent — or 400,562 — are valued more than $1 million.
Compared with San Francisco, the median value of owner-occupied houses is lower, at $650,300.
San Diego had the fourth-highest share of million-dollar homes.
About 84,769 units of a total of 600,545 have seven-figure values, which amounts to more than 14 percent.
Farther north, Seattle had the fifth-highest ratio of million-dollar homes in the U.S. — about 11 percent.
The median value of owner-occupied housing units in the city is $487,400.
Rounding out the top 10 were:
- New York (6)
- Boston (7)
- Washington, D.C. (8)
- Miami (9)
- Denver (10)
On the other hand, the cities with the smallest share of million-dollar homes were Cincinnati, Buffalo, New York; Pittsburgh, Cleveland and Columbus, Ohio.
Only about 0.68 percent of homes in Cincinnati, Buffalo and Pittsburgh are worth $1 million or more.