Just over 8% of homes in the United States are worth $1 million or more. That figure is near June 2022’s all-time high of 8.6%, says a new report from Redfin.
The share of homes worth seven figures is on the upswing after dipping to a 12-month low of 7.3% in February. That’s because home prices are rising on a year-over-year basis after falling at the beginning of the year.
The median U.S. home-sale price rose 3% in July, the biggest increase since last November. Prices are rising faster for high-end homes, with the median sale price of U.S. luxury homes up 4.6% year over year to $1.2 million in the second quarter.
The share of homes worth seven figures has doubled since before the pandemic; just over 4% of homes were valued at $1 million or more in June 2019. The share has shot up because home prices skyrocketed in 2020 and 2021 as record-low mortgage rates and remote work drove Americans to buy homes.
Parts of New England are gaining million-dollar homes fastest. Just over one-quarter (25.8%) of homes in the Bridgeport, Conn. metro – which is made up of many popular New York City suburbs – are worth at least $1 million, up from 23.1% a year ago, the biggest increase of the metros in this analysis.
Share of seven-figure homes is falling in pricey West Coast metros, but they still make up substantial portion of homes. Expensive coastal metros are losing million-dollar homes fastest. The share dropped from 39.3% to 33% over the last year in Seattle, the biggest decline of the metros in this analysis.
Pricey parts of the country, especially along the West Coast, have seen outsized drops in their portion of million-dollar homes because those markets cooled more than others. First is San Francisco, where 81.2% of homes are worth at least $1 million, down from 84.2% a year earlier. It’s followed closely by San Jose, Calif. (79.6%, down from 82.9%).
Million-dollar homes are virtually nonexistent in some parts of Texas and the Rust Belt There are essentially no million-dollar homes in several inexpensive metros, including parts of Texas and upstate New York.
Image by jcomp on Freepik.