Basic economics tells us that the scarcer something is, the more valuable it becomes — and housing is no exception.
As the nationwide housing shortage persists, demand continues to exceed supply, keeping home prices high for the foreseeable future. While homebuyers can take comfort in the fact that most cities still have mostly six-figure homes, the number of properties reaching or exceeding seven-figure values is steadily increasing.
To determine the US cities with the most million-dollar homes, the economic research team at LendingTree analyzed data from the Census Bureau’s 2023 American Community Survey on the share of owner-occupied homes valued at $1 million or more — with or without a mortgage — in the 50 largest metropolitan areas.
The research team found that US cities with the most million-dollar homes are predominantly in California; the top four are San Jose, San Francisco, Los Angeles, and San Diego. Other high-value markets include New York, Seattle, and Washington DC.
These cities attract residents with thriving job markets, vibrant entertainment scenes, and a high perceived quality of life. However, many struggle with limited housing inventory, which greatly contributes to higher home prices.
“Steep prices are often felt the most in large metros, where roadblocks such as overly strict zoning laws can make new construction difficult and exacerbate supply issues,” Jacob Channel, a senior economist at LendingTree, said.
In San Jose, ranked by LendingTree as the US city with the most million-dollar homes, single-family zoning laws and NIMBYism (Not In My Backyard) — where residents tend to oppose new development to preserve neighborhood character and property values — have long contributed to the city’s housing shortage.
“Without more homes being built, San Jose and other cities will likely see home prices keep rising,” Channel told Business Insider. While the average home price in the US is “unlikely to reach $1 million anytime soon,” million-dollar properties will “become more and more common across the nation,” he said.
He forecast that Salt Lake City may crack this list at some point and that Miami and Denver could move up the rankings.
“If things keep along their current course, we will see a heck of a lot more places where a million-dollar home is the norm,” Channel added.
Below are the 10 US cities with the most million-dollar housing units, as defined by the census as a house, an apartment, a mobile home, or other types of housing.
10. Miami9. Denver8. Washington7. New York6. Boston5. Seattle4. San Diego3. Los Angeles2. San Francisco1. San Jose
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