U.S. Real Estate Market Sees Record-High Number of Million-Dollar Cities: Zillow Analysis
The U.S. real estate market is booming with a record-high 550 “million-dollar” cities, where the typical home is worth $1 million or more, according to a new analysis by Zillow. This marks an increase of 59 million-dollar cities from just a year ago, signaling a strong turnaround in the market.
Despite affordability challenges, home values continue to rise due to a tight property market with limited inventory. However, the good news for buyers this home-shopping season is that new listings are on the rise as the effects of “rate lock” weaken and the hope for lower mortgage rates later this year may spark a second wave of buyer demand.
Anushna Prakash, an economic research data scientist at Zillow, commented on the current market conditions and predicted a surge in million-dollar cities if mortgage rates decrease later this year. While affordability remains a challenge, buyers can expect more options to choose from, although competition will remain fierce for well-priced homes.
California leads the pack with 210 million-dollar cities, followed by New Jersey which added the most million-dollar cities over the past year. However, Florida, Texas, and Delaware experienced a net loss in million-dollar cities.
The New York City metro area boasts the most million-dollar cities with 106, followed by San Francisco and Los Angeles. Other cities such as Boston, San Diego, Chicago, and San Luis Obispo also saw an increase in million-dollar cities in the past year.
Zillow offers tools such as an affordability calculator to help buyers set a budget and search for homes within their price range. By connecting buyers with real estate professionals and loan officers, Zillow aims to make the home-buying process easier and more accessible.
As the most visited real estate website in the U.S., Zillow Group, Inc. is committed to reimagining real estate and making home ownership a reality for more people through digital solutions and dedicated partners. With a focus on providing a seamless buying, selling, financing, and renting experience, Zillow is reshaping the real estate industry to better serve buyers and sellers alike.
