The U.S. recorded a new high of 550 “million-dollar” cities — where the typical home is worth $1 million or more — according to a data analysis by Zillow (NASDAQ:Z, ZG). This is 59 more from 2023.
Zillow noted the typical U.S. home is worth 4.2% more than it was a year ago, while in the million-dollar cities the median year-over-year home value growth is 4.6%.
California led the nation with 210 million-dollar cities, more than the next five states combined. New Jersey has added the most million-dollar cities over the past year, gaining 14, while three states – Florida, Texas and Delaware – were the only states to have a net loss in million-dollar cities over the past year. At a metro level, the New York City metro area – which encompasses parts of New Jersey and Pennsylvania – had the most million-dollar cities with 106, which is 24 more than a year ago.
“Affordability is still a big challenge for buyers, but that hasn’t stopped prices from growing,” said Anushna Prakash, an economic research data scientist at Zillow. “Buyers this spring are going to see more options to choose from, but they’ll also see a lot of other buyers wandering through the same open houses. Competition will stay fierce, especially for the most attractive and well-priced homes. If mortgage rates drop later this year, as many expect, we may see a surge in million-dollar cities as even more buyers jump in and drive prices higher.”
