The rebalancing of the housing market has been
felt the most in areas where affordability is stretched
- There are currently 464 U.S. cities where the typical home
value is $1 million or more. There
were 522 at the housing market's peak last July.
- There are 190 "million-dollar" cities in California alone.
- The New York, San Francisco and Los Angeles metro areas have the most
million-dollar cities, though they have also lost the most
million-dollar cities since the market peaked.
SEATTLE, March 13,
2023 /PRNewswire/ -- The U.S. has lost 58
"million-dollar" cities — cities where the typical home is worth
$1 million or more — since the
housing market peaked last July, a new Zillow® analysis shows. In
the six months after the peak, the typical home in million-dollar
cities lost an average of $114,500 in
value.
The housing market is singing a much different tune than in
recent years as it continues to rebalance toward normal. Last year
set a record for the most new million-dollar cities amid
supercharged housing demand. Both demand and supply hit the brakes
in the second half of 2022 after mortgage rates spiked. Buyers,
stretched thin in what they could afford, flocked to lower-priced
homes, a reversal from earlier in the pandemic. With fewer buyers
able to use the support of historically low interest rates to help
afford homes with a high price tag, expensive markets felt the
biggest impact of the slowdown.
"Unfortunately for buyers, mortgage rates have overwhelmed these
price cuts. But even though competition is picking up as we enter
home shopping season this spring, it's a much friendlier
environment to buy a home for those who can make the finances
work," said Anushna Prakash, economic data analyst at Zillow.
"Sellers may have missed the market's peak, but they can still get
a higher price for their homes than last year in most markets, and
certainly more than they would have before the pandemic. Getting
the pricing right and boosting a home's online curb appeal are keys
to success for this spring's sellers."
The typical U.S. home is worth 4.1% less than it was last July,
according to the Zillow Home Value Index. In current million-dollar
cities, the typical home has lost 6.3% of its value during that
time, on average.
Thirty-two states are home to at least one million-dollar city. There were 33 states
with one such city last summer, but Montana's lone million-dollar city has since
fallen off that list. Gallatin
Gateway, a small community in the Bozeman area, has seen its typical home value
fall to $987,824 — down about
$117,000 since peaking in June.
Coastal states continue to dominate the list. Of the 464 current
million-dollar cities, 387 are in a state on either U.S. coast.
California alone has 190 million-dollar cities, more than the next six
states combined. There are 37 cities with a typical home value of
more than $3 million, 36 of them in
coastal states and one in Hawaii.
California has also lost
20 million-dollar cities since July,
easily more than any other state. Texas and New
Jersey are next, losing five
million-dollar cities each. Florida has lost four, and Utah and Hawaii have each lost three.
At the metro level, the New York
City area has the most million-dollar cities, with 90.
San Francisco (67 million-dollar cites), Los Angeles (53) and San Jose (21) are next, with Boston (19) holding enough strength to round
out the top five, after tying with Seattle at this time last year.
Los Angeles has lost the most
million-dollar cities since July, with seven falling below that
mark. The New York City metro area
has lost six, San Francisco has
lost four, and Austin has lost
three during that time.
Million-Dollar
Cities by State
|
State
|
$1 Million Cities:
January 2023
|
$1 Million Cities:
July 2022
|
California
|
190
|
210
|
New York
|
64
|
66
|
New Jersey
|
32
|
37
|
Florida
|
28
|
32
|
Massachusetts
|
26
|
27
|
Colorado,
Washington
|
16
|
18
|
Hawaii
|
14
|
17
|
Texas
|
10
|
15
|
Maryland
|
7
|
7
|
South
Carolina
|
6
|
6
|
Connecticut,
Virginia
|
5
|
6
|
Utah
|
4
|
7
|
Minnesota,
Tennessee
|
4
|
5
|
Nevada,
Wyoming
|
4
|
4
|
Missouri, North
Carolina
|
3
|
5
|
Illinois
|
3
|
3
|
Arizona,
Idaho
|
2
|
3
|
New Hampshire, Ohio,
Wisconsin
|
2
|
2
|
Delaware, Georgia,
Kansas, Michigan,
Pennsylvania, Rhode Island
|
1
|
1
|
Montana
|
0
|
1
|
Metro Areas With the
Most Million-Dollar Cities
|
Metro
Area
|
$1 Million Cities:
January 2023
|
$1 Million Cities:
July 2022
|
New York, NY
|
90
|
96
|
San Francisco,
CA
|
67
|
71
|
Los Angeles,
CA
|
53
|
60
|
San Jose, CA
|
21
|
23
|
Boston, MA
|
19
|
20
|
Seattle, WA
|
15
|
17
|
Miami–Fort Lauderdale,
FL
|
15
|
16
|
Washington,
DC
|
11
|
12
|
Santa Maria–Santa
Barbara, CA
|
9
|
9
|
Santa Rosa,
CA
|
8
|
8
|
San Diego,
CA
|
7
|
8
|
Vineyard Haven,
MA
|
7
|
7
|
Dallas–Fort Worth,
TX
|
6
|
8
|
Denver, CO
|
6
|
7
|
Salinas, CA
|
6
|
6
|
About Zillow Group
Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate
to make it easier to unlock life's next chapter. As the most
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SOURCE Zillow