(NewsNation) — Home prices have skyrocketed in recent years, and today, nearly 1 in 10 U.S. homes are worth $1 million or more, a record high.
The share of $1 million homes now stands at 8.5%, up from 4% before the pandemic, according to a new Redfin report.
Nationally, just over 8 million U.S. homes were worth at least $1 million in June 2024, roughly a million more than the year prior and more than double the 3.4 million in June 2019.
The rise in $1 million properties is no surprise given the surge in home prices across the country, which remain high due to a supply shortage driving competition, Redfin said. Inventory has improved recently but is about 30% below pre-pandemic levels, partly because many homeowners are locked in at lower mortgage rates.
California leads the nation when it comes to cities where $1 million homes are the norm.
In San Francisco and San Jose, about 80% of homes are worth seven figures, followed by Anaheim (58.8%) and Oakland (48.1%). San Diego (42.6%) and Los Angeles (39.3%) also made the top six.
“Home prices, insurance and mortgage rates have shot up so much that many people are either priced out of the market or weary of committing to such a high monthly payment,” Julie Zubiate, a Redfin Premier agent in the Bay Area, said in a release.
For perspective: To afford a typical home in San Francisco or San Jose, households need to make roughly $380,000 a year, according to a separate Redfin analysis.
Meanwhile, three U.S. metros did not see their share of million-dollar homes rise from the year before, two of which were in Texas: Austin and Houston. That’s partly because of “rampant new construction” in the Lone Star State, which has put a lid on price growth, the report noted.
In multiple Midwestern cities, less than 1% of homes are worth over $1 million. Of the major U.S. metros, Detroit has the smallest share of million-dollar homes, 0.5%, followed by Cleveland (0.8%) and Kansas City, Missouri (0.9%).
Pittsburgh (0.9%), St. Louis (1.3%), Cincinnati (1.5%) and Columbus (1.5%) also had a relatively small share.
Major metros with the highest share of homes worth at least $1 million, according to Redfin:
San Francisco, CA: 80.6%
San Jose, CA: 80.1%
Anaheim, CA: 58.8%
Oakland, CA: 48.1%
San Diego, CA: 42.6%
Los Angeles, CA: 39.3%
Seattle, WA: 34.4%
New York, NY: 30.5%
Boston, MA: 23.8%
Nassau County, NY: 19.2%
Major metros with the lowest share of homes worth at least $1 million, according to Redfin:
Detroit, MI: 0.50%
Cleveland, OH: 0.80%
Kansas City, MO: 0.90%
Pittsburgh, PA: 0.90%
St. Louis, MO:
Cincinnati, OH: 1.50%
Columbus, OH: 1.50%
Warren, MI: 1.70%
Indianapolis, IN: 2.00%
Milwaukee, WI: 2.00%
Redfin’s analysis estimated home values using the Redfin Estimate, public records and MLS data.
