Said the Spritzler Report owner, "sure we went a little overboard with the place, but I use it as home office and have meetings in the drawing room. It's great for entertaining clients. Pictured in front is Hank, the Dir of Security for the property".
A record number of homes in America are now worth $1 million or more
Almost one-tenth of homes across the U.S. have a seven-figure price tag
By Rocio Fabbro, Quartz Media
UpdatedFriday 9:04AM
Housing prices across the U.S. have continued to rise, giving a record number of homes a seven-figure price tag,
Nearly one-in-ten, or 8.5%, of homes are now worth $1 million or more — the highest proportion of all time, according to Redfin data released Friday. That’s more than 8 million U.S. homes worth at least $1 million in June, up more than 10% from a year ago and more than double the share prior to the pandemic.
Housing affordability has become one of the biggest burdens shouldered by Americans in recent years, as home prices soar, mortgage rates are still more than double 2022 lows, and inventory remains sparse for prospective homebuyers.
“Home prices, insurance and mortgage rates have shot up so much that many people are either priced out of the market or weary of committing to such a high monthly payment,” said Julie Zubiate, a Redfin (RDFN) Premier agent in the Bay Area, where the majority of homes sell for at least $1 million.
The median sale price of a home in June rose 4% from a year ago to $442,451. Meanwhile, the national average 30-year fixed mortgage rate was 6.9%. Homebuyers are getting some relief from falling mortgage rates, which have seen steady drops over the past several weeks thanks to signs of a cooling economy.
The million-dollar home trend isn’t isolated to one state or even region. Across all 50 of the most populated metropolitan areas in the U.S., all but three saw the share of homes worth at least $1 million rise from a year ago, according to Redfin (RDFN). Austin, Indianapolis, and Houston were the only metros to see the share of million-dollar homes decline.
California, on the other hand, has the biggest share of $1 million homes: In both San Francisco and San Jose, about 80% of homes go for seven figures.
The seven-figure starter home
Even starter homes (the lowest third of home values in a region) are out of reach for many first-time homebuyers.
A typical “starter home” costs $1 million or more in a whopping 237 U.S. cities, according to a recent report by real estate site Zillow (ZG). That’s nearly triple the number of cities where that was the case in 2019.
Almost half of those cities are in California, where typical starter homes would put buyers out at least $1 million in 117 cities. The runner-up is New York, with 31 cities, followed by New Jersey with 21. Florida and Massachusetts each have 11 cities where a starter home has a seven-digit price tag.
The 13-figure housing markets
Across the U.S., there are now eight $1 trillion metropolitan areas, according to Redfin data released last week.
In the past 12 months, the total value of U.S homes rose $3.1 trillion to reach a record $49.6 trillion — and over the past decade that figure has more than doubled, surging nearly 120% from $22.7 trillion in June 2014.
Redfin economics research lead Chen Zhao expects the total value of the housing market to surpass $50 trillion within the next year, as a lack of inventory will continue to inflate prices.
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