- ORIGINAL NEWS
$1 million homes are now ‘typical’ in a record number of U.S. cities, analysis finds. Here’s where they are
- SUMMARY
In February, the United States witnessed a record-breaking 550 cities where the average home price soared past $1 million, a surge of 59 cities from the previous year.
This surge is attributed to a tight real estate market, where limited inventory and high demand have driven up home values.
Mortgage lock-in, a phenomenon where homeowners with extremely low mortgage rates hesitate to sell, has restricted supply, further fueling the price increase.
California leads the nation with 210 million-dollar cities, far surpassing the combined total of the five next-ranked states.
While some areas have gained the coveted million-dollar city status, others have lost it due to increased inventory.
In markets where many homeowners have mortgages with rates between 6% and 7%, the lock-in effect is less impactful, leading to more sellers listing their homes for sale.
However, the loss of million-dollar cities in certain areas may not indicate a significant trend, as high-cost luxury markets remain prevalent in Florida and Texas.
For instance, Naples, Florida, currently boasts the most expensive home for sale in the US, priced at an astounding $295 million.
Overall, this increase in million-dollar cities reflects an imbalanced real estate market, with high demand and low supply continuing to push home values to unprecedented levels.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“The U.S. had 550 “million-dollar” cities, or areas where the typical home is worth more than $1 million, in February, according to a new analysis by Zillow.”
“Naples, Florida, boasts the most expensive home for sale in the U.S., which hit the market in February for $295 million.”
Negative
“In those places where we’ve lost million-dollar cities … they’re not as locked in, and they have a lot more of that new construction that helps that picture, too, she said.”
“Florida lost three million-dollar cities — Siesta Key, Santa Rosa Beach and Sanibel — while Texas lost Sunset Valley and Volente, two areas near Austin.”