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Top Tier Cities: $1 Million Homes Become the New Norm

$1 million homes are now ‘typical’ in a record number of U.S. cities, analysis finds. Here’s where they are


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.


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