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Million Dollar Homes Are Taking Over These 25 Cities

In some cities, the number of luxury homes is skyrocketing.

 

By Gabrielle Olya

May 9, 2019

hikesterson / Getty Images/iStockphoto

 

It’s no surprise that many major cities and several expensive zip codes often have high home prices. But in some cities, the majority of the homes that are for sale are priced at over $1 million. And in many cities where most homes still cost less than seven figures, the percentage of homes listed for $1 million or more has increased over the past year.

Whether you’re on the hunt for luxury real estate or are looking to avoid high home prices, find out where more million dollar home are popping up as home prices keep skyrocketing in certain cities.

 

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25. Nashville, Tennessee

Percentage of homes worth more than $1 million: 2.2%

Although the median home value in Nashville is still relatively affordable at $259,922, the percentage of homes selling for more than $1 million has increased 0.3 percent year over year. However, most of the population likely can’t afford these homes. Only 5.2 percent of the area’s households earn more than $200,000.

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24. Phoenix, Arizona

Percentage of homes worth more than $1 million: 2.3%

The median home list price in Phoenix, $262,033, is slightly higher than in Nashville, but it’s still on the lower end compared to the other cities on this list.

It’s good that you can still find affordable homes in the area as only a sliver of the population can actually afford the million dollar homes in Phoenix: Just 5.6 percent of households earn more than $200,000.

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23. Fort Lauderdale, Florida

Percentage of homes worth more than $1 million: 2.4%

The number of million dollar listings in Fort Lauderdale rose by 0.3 percent from 2017 to 2018. The pricey homes in the area would be financially out of reach for those earning the median income in the city: $56,309. That’s one of the lowest median incomes compared to the median income in the other cities included on this list.

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22. Portland, Oregon

Percentage of homes worth more than $1 million: 2.5%

The inventory of homes worth more than $1 million rose just 0.1 percent from 2017 to 2018 in Portland, but the Pacific Northwest city still has one of the highest concentrations of luxury homes in the U.S. There are also many more affordable homes in the area with the median listing price at $302,129.

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21. Austin, Texas

Percentage of homes worth more than $1 million: 2.9%

The inventory of million dollar homes in Austin rose 0.4 percent in 2018. The median listing price in the city is significantly lower than a million, however, at $404,104.

If you’re looking for affordable homes in Austin head to Georgian Acres it’s one of the most affordable neighborhoods in the U.S., a separate GOBankingRates study found.

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20. Sacramento, California

Percentage of homes worth more than $1 million: 2.9%

Sacramento’s median home value is the lowest of any city on this list at $230,375. But the number of homes priced above $1 million is growing: The stock of million dollar homes rose 0.3 percent from 2017 to 2018.

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19. Cape Coral-Fort Myers, Florida

Percentage of homes worth more than $1 million: 3.3%

The Cape Coral-Fort Myers metro area has a high percentage of million dollar homes compared to other parts of the country, but its median income is among the lowest on this list, $53,928. Only 5.1 percent of households in the area earn more than $200,000.

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18. Denver, Colorado

Percentage of homes worth more than $1 million: 3.4%

The capital of Colorado has more than its share of million dollar homes. Over the course of a year, the number of listings increased by 0.4 percent. Fortunately, for prospective buyers, the median list price has remained relatively low compared to other cities on this list at $257,281.

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17. North Port-Sarasota-Bradenton, Florida

Percentage of homes worth more than $1 million: 3.8%

The North Port-Sarasota-Bradenton metro area is one of two locations included in this study that saw a dip in the inventory of million dollar homes. The percentage of the housing stock worth more than a $1 million dropped 0.3 percent from 2017 to 2018.

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16. Newark, New Jersey

Percentage of homes worth more than $1 million: 4.2%

At $251,230, Newark still has a relatively low median home value compared to other cities on this list. Its inventory of homes worth $1 million or more is dropping. It decreased 0.3 percent over the past year.

Million dollar homes are likely out of reach for most of the population: The median income in Newark is $35,167 which is the lowest of any city in this study. It also has the lowest percentage of households earning more than $200,000 a year: 2.1 percent.

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15. Charleston, South Carolina

Percentage of homes worth more than $1 million: 4.8%

The luxury real estate market is growing in Charleston. The percentage of housing stock worth more than $1 million increased 0.8 percent year over year in the southern city where the median list price is $398,704.

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14. Washington, D.C.

Percentage of homes worth more than $1 million: 4.9%

The nation’s capital offers a high volume of luxury real estate that continued to grow over the past year: The number of million dollar home listings climbed 0.4 percent in 2018. High priced homes are actually affordable to a relatively high percentage of the population with 16.7 percent of households earning more than $200,000.

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13. West Palm Beach, Florida

Percentage of homes worth more than $1 million: 5.1%

West Palm Beach has a high percentage of million dollar homes and also a high percentage of residents who can’t afford them. The median income in this Florida city is $51,871 which is the third lowest of the cities included on this list. Only 5 percent of households in the area earn more than $200,000.

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12. Miami, Florida

Percentage of homes worth more than $1 million: 5.9%

There’s no shortage of luxury real estate in Miami, but the inventory of homes worth more than $1 million dollars has stayed the same from 2017 to 2018.

It’s probably hard for most of Miami’s population to afford luxury homes given that the median income is $40,327 — the second lowest of the cities included in this study. Only 5.6 percent of the area’s households earn more than $200,000.

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11. Silver Spring-Frederick-Rockville, Maryland

Percentage of homes worth more than $1 million: 7.2%

This Maryland metro area is fairly well off. The median income here is $84,393 which is the fifth highest of the cities included in this study. Given that residents are high earners, it makes sense that there’s a high concentration of luxury real estate in the Silver Spring-Frederick-Rockville metro area.

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10. Cambridge-Newton-Framingham, Massachusetts

Percentage of homes worth more than $1 million: 9.4%

The Cambridge-Newton-Framingham metro area has the fourth highest median income on this list, $85,691, and 14.6 percent of households earn more than $200,000. With so many high earners, it’s not a surprise that there’s a high percentage of million dollar homes in this New England area.

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9. Boston, Massachusetts

Percentage of homes worth more than $1 million: 9.8%

Boston, which is home to the most expensive ZIP code in the state of Massachusetts, is another city on the list that experienced exceptional growth in luxury homes.

According to the data, million dollar home listings grew 1.2 percent in 2018. But the median listing price is less than half a million at $458,920

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8. New York

Percentage of homes worth more than $1 million: 10.3%

The Big Apple comprises five boroughs which is one reason it has one of the highest percentages of homes worth more than $1 million for sale in 2018. That figure rose 0.4 percent over the past year.

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7. Seattle

Percentage of homes worth more than $1 million: 13.3%

Luxury real estate in Seattle increased by 1.9 percent from a year earlier. But incomes here are also on the high end. The median income in the city is the third highest of all the places included in this study at $86,822, and 15.8 percent of households earn more than $200,000.

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6. San Diego, California

Percentage of homes worth more than $1 million: 13.8%

San Diego also has a high inventory of million dollar homes and it continued to rise in 2018. Homes for sale with a million dollar price tag increased 2 percent from last year.

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5. Los Angeles, California

Percentage of homes worth more than $1 million: 19.6%

The number of million dollar listings in Los Angeles increased 2.2 percent in 2018. That’s the fifth greatest rise of all the cities in this study. The average listing price is the fifth highest of the included cities at $613,718.

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4. Honolulu, Hawaii

Percentage of homes worth more than $1 million: 19.8%

Honolulu had a 3.7 percent increase in million dollar home inventory in 2018 — the fourth greatest increase of all the cities in this study. It also has the fourth highest median home value of all the cities in this study — $685,091.

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3. Oakland, California

Percentage of homes worth more than $1 million: 30.7%

The NorCal city experienced a 5.9 percent increase in home inventory worth over $1 million over the past year, the third largest increase of all the cities in this study.

Not only does Oakland have the third highest percentage of million dollar homes, it also has the third highest median list price at $766,684.

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2. San Jose, California

Percentage of homes worth more than $1 million: 70%

San Jose has a significant number of million dollar residences. Inventory increased 14.2 percent in 2018, the largest increase of any city on this list. It also has the second highest median home value at $1.29 million.

Although home values in San Jose are extremely high, the city also has the second highest median income at $104,675. Over a fifth of the area’s households earn more than $200,000.

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1. San Francisco, California

Percentage of homes worth more than $1 million: 81%

San Francisco is widely known for its expensive real estate, and it lives up to its reputation with the highest median home value on this list: $1.39 million.

The number of million dollar homes for sale certainly is also proof of its pricey real estate with 81 percent of its housing inventory priced at $1 million and up. The million dollar inventory increased 13.7 percent in 2018, the second greatest increase of any city on this list.

Fortunately, it’s also the city with the highest median income - $110,816. More than a quarter of households earn over $200,000. Despite that, it’s one of the cities where most of the population can’t afford a home.

 

California Dominates the Cities With the Most Million Dollar Homes

Five out of the top 10 cities with the most million dollar homes are in California, with the top three concentrated in the San Francisco Bay Area. This isn’t too much of a surprise considering the region has been notoriously expensive since long before the housing bubble and recovery.

Fueled by booming business, especially in the tech sector, San Francisco, San Jose and Oakland all have more than 30 percent of their home inventories worth $1 million or more.

California home values, specifically, have an additional factor that keeps home prices and values high: Proposition 13, which was passed in the 1970s and put a cap on property taxes.

By capping the amount homeowners pay in property tax, the impetus to build more homes and bring home values down, and thus property taxes, is not present. Instead, home building is very restricted further driving up demand and prices.

The West Coast and Northeast dominate the next segment of cities with million dollar homes. Honolulu, Los Angeles, San Diego, Seattle and New York all have more than 10 percent of all homes worth $1 million or more.

Again, Honolulu and Los Angeles have been pricey for some time, though increased population migration to places like San Diego, and especially Seattle, which is the No. 2 tech spot behind the San Francisco Bay Area, have led to a surge in demand, higher home prices and greater wealth.