Rising house prices in the U.S. are driving affordability issues, especially for first-time buyers. This surge is fueled by low inventory and high demand, pushing many out of the market. The increased financial burden strains household budgets, exacerbating wealth inequality and potentially slowing overall economic growth.
Read more: First-Time Homebuyer Guide
The pandemic further influenced housing dynamics, with many homeowners opting to stay in their current homes to benefit from low mortgage rates, thus intensifying competition and driving up prices.
In 2023, nearly one in 10 homes were worth at least $1 million, according to real-estate analysis firm Redfin.
Below is a map showing the 15 cities with the highest percentage of homes valued at $1 million or more.
Nearly 8.2 percent of homes in the U.S. were valued at $1 million or more in June 2023, a slight decrease from the 8.6 percent peak in June 2022.
Read more: How Much House Can You Afford?
California continues to dominate the list of cities with the highest share of million-dollar homes in the top 15.
San Francisco tops the list with 81% of its homes valued at $1 million or more, followed closely by San Jose at 80%. These cities are part of the broader San Francisco Bay Area, known for its high real estate values due to the tech industry’s presence and the number of high-paying jobs. Other California cities like Anaheim, Oakland, and Los Angeles also feature prominently on the list.
The top 15 cities by the percentage of million-dollar homes are:
- San Francisco, California – 81 percent
- San Jose, California – 80 percent
- Anaheim, California – 55 percent
- Oakland, California – 49 percent
- San Diego, California – 40 percent
- Los Angeles, California – 38 percent
- Honolulu, Hawaii – 38 percent
- Oxnard, California – 35 percent
- Salt Lake City, Utah – 33 percent
- Seattle, Washington – 33 percent
- New York, New York – 29 percent
- Bridgeport, Connecticut – 26 percent
- Boston, Massachusetts – 22 percent
- Nassau County, New York – 16 percent
- Miami, Florida – 14 percent
Honolulu is the first city outside California to make the list. Hawaii saw a spike in its population in 2020 amid the COVID-19 pandemic, and saw a year-on-year rise of 23.1 percent in housing demand between 2023 and May this year, according to Freddie Mac.
Hawaii is often considered the most expensive state to live in the U.S., driven by several factors, including expensive housing, high utility costs, and the need to import many goods and services from the mainland. Additionally, the state’s geographic isolation contributes to higher transportation costs for both goods and people.
The trend of $1 million houses is particularly pronounced in urban and suburban markets, where competitive bidding and rising construction costs inflate prices. Remote work flexibility has also spurred affluent buyers to invest in larger, more expensive properties.
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Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
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