The stakes of homebuying keep rising – and the prospects for success keep dwindling – as more cities across the nation join the "million-dollar club." In cities that have joined this no longer quite so exclusive group, the typical home value is $1 million or more.
The sharp 12% spike in this club's membership – from 491 last year to 550 in 2024 – means that affordability will continue to be a challenge for many, according to a new analysis by Zillow. New listings are on the rise, offering buyers more choices. "But they'll also see a lot of other buyers wandering through the same open houses. Competition will stay fierce, especially for the most attractive and well-priced homes," said Zillow data scientist Anushna Prakash.
And if mortgage rates drop, more buyers will enter the fray, pushing prices still higher, she predicted. Already the typical American home is worth 4.2% more than a year ago. In million-dollar cities median home values shot up 4.6%.
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Perhaps unsurprisingly, the highest collection of million-dollar cities is located in California, which now hosts 210 compared to 198 in February 2023, with Los Angeles, San Diego, and San Luis Obispo all seeing gains.
The number in New York State rose from 54 to 66 – but in the New York City metro area, including parts of New Jersey and Pennsylvania, 24 more cities joined the list for a total of 106. Other states that added million-dollar cities were led by New Jersey (14), along with Massachusetts (4), Maryland (2), Virginia (2), Minnesota and Utah (2 each), Illinois (3), and Pennsylvania (2).
There were some losers, however. Florida, Texas and Delaware each lost club members.
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