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%.