A $1 million price tag on a U.S. home may no longer indicate a luxury property. Today, nearly one in 10 U.S. homes are worth at least $1 million, with tight supply driving prices up to record highs across the nation, according to a new Redfin report on home prices.
The share of homes worth at least $1 million now stands at a record 8.5%, a jump of more than 7% from a year ago. The proportion of million-dollar-plus homes has more than doubled since the pandemic, as prior to 2020 only about 4% of properties crossed that threshold, according to Redfin.
Surging home prices across the U.S. are behind the sharp increase in the number of $1 million properties, according to Redfin. In June, the median home sale price nationwide rose 4% to $442,525, compared to a year earlier.
Prices rose at an even faster clip for high-end homes. The median sale price of U.S. luxury homes rose 9% during the same period, to reach a record $1.18 million. This has helped push a large share of homes worth just under $1 million across that threshold, according to Redfin.
Even though high mortgage rates are putting pressure on demand, U.S. home prices have continued to rise due to the tight supply of homes on the market, according to Redfin. Because buyers have limited options, that’s giving homeowners more leverage in pricing.
Where are these million-dollar homes?
In some cities, it might be tough to find a home for less than $1 million.
California is home to the highest share of properties worth at least $1 million, the analysis found. It’s also gaining more $1 million homes faster than any other state.
Roughly 80% of the homes in both San Francisco and San Jose are worth $1 million and up, according to Redfin. And nearly 60% of all homes in Anaheim, California are worth at least $1 million, up from 51% one year ago.
Only one metro area saw a decline in it share of $1 million-plus homes. In Austin, Texas, the share slipped from 10.1% to 10%. Indianapolis and Houston saw no growth in their shares of million dollar homes.
The markets with the fewest $1 million homes include Detroit; Cleveland; Pittsburgh; and Kansas City, Missouri. In these metros, less than 1% of homes are worth seven figures, according to Redfin.
