In this article, we will be covering the 20 US cities with the most million-dollar homes. If you wish to skip our detailed analysis, you can move directly to the 5 US Cities with the Most Million-Dollar Homes.
Million-Dollar Homes in the US: An Overview
Since the beginning of the global pandemic, the million-dollar homes in America have doubled. As reported by Redfin, almost 1 in 10 US homes are currently worth at least $1 million. The limited housing inventory during the year also pushed the prices for many homes into the million-dollar category. You can take a look at the US cities with the fewest homes for sale to have a better idea of the inventory shortage.
Amidst high mortgage rates in 2023, homeowners continued to hold onto their homes since they had to pay a higher mortgage on a new home. There was intense competition among buyers for the limited for-sale inventory. This shortage made numerous listings valuable, moving properties above the million-dollar mark. High-end homes in decent condition and a fair price were an attraction for many. Some of the most overpriced housing markets in America have been previously covered.
Region-Wise Analysis
The growth of million-dollar homes was the highest in the East Coast metros including Boston, Bridgeport, and Newark. On the other hand, a drop in the million-dollar home share was witnessed in the West Coast metros in 2023. Some of these include Oakland, Oxnard, and Seattle. State-wise, California holds the highest share of homes worth $1 million or more. Californian metros including San Francisco, San Jose, and Anaheim had significant shares of million-dollar homes. Texas and upstate New York had an almost nonexistent inventory of million-dollar homes.
Housing Affordability in the Current Scenario
The rise in million-dollar home inventory continues to worsen the housing affordability crisis in the United States. While many simply could not afford expensive properties, monthly payments on million-dollar homes increased from 2022 to 2023. As of June 2023, the monthly mortgage payment on a $1 million home was $6,604.
However, for the first quarter of 2024, better affordability and easing interest rates have been forecasted to drive the real estate market growth in the United States. The spring season is expected to offer bright prospects by introducing a larger supply of cheaper houses to homebuyers.
For the week ending March 14, Realtor reported that the average rate for a 30-year fixed home loan dropped from 6.88% to 6.74%. The annual listing price growth also declined in the week ending March 9, thereby recording the first week of year-over-year price drops since July 2023. Affordable homes within the price bracket of $200,000 and $350,000 have also recorded a rise.
Diverse Housing Options for Buyers
Although an uptick in million-dollar homes has been witnessed, many homebuilders continue to address the concerns regarding affordability and availability of housing. These companies offer a diverse portfolio of homes in various price ranges. Some of the known home construction companies in the US include D.R. Horton, Inc. (NYSE:DHI), Taylor Morrison Home Corporation (NYSE:TMHC), and Meritage Homes Corporation (NYSE:MTH).
D.R. Horton, Inc. (NYSE:DHI) is a leading American homebuilder that has successfully closed more than 1,000,000 homes in its 45-year history. The company operates in 118 markets in 33 US states. With sales prices generally ranging from $200,000 to over $1,000,000, D.R. Horton, Inc. (NYSE:DHI) has a diverse home portfolio to offer and provides housing options in the low-maintenance, first-time homebuyer, luxury, apartment, and leased categories.
Taylor Morrison Home Corporation (NYSE:TMHC) serves as one of the largest homebuilding companies in America. The company caters to the homeownership needs of various types of homebuyers. Its brand Esplanade offers housing centered around the concept of resort-style living, enriched with amenities. Simultaneously, the brand Yardly from Taylor Morrison Home Corporation (NYSE:TMHC) enhances the traditional apartment living experience for interested buyers.
Meritage Homes Corporation (NYSE:MTH) is a major homebuilder in the United States that serves across Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee. The homebuilder provides affordable, energy-efficient, entry-level, and first-move-up homes, and has delivered 175,000 homes during its 38 years in business. Meritage Homes Corporation (NYSE:MTH) offers a new standard in health-conscious homebuilding and design which enables saving money every month based on energy efficiency.
You can also view the largest homebuilders in the US. Now that we have taken a look at the US housing market and trends in million-dollar homes, let’s move to the 20 US cities with the most million-dollar homes.
20 US Cities with the Most Million-Dollar Homes
Our Methodology:
In order to compile a list of the 20 US cities with the most million-dollar homes, we acquired data from the leading real-estate source, Redfin. The source gives metro-level data on million-dollar homes. We have used the metro-wise share of homes worth at least $1 million as our metric. The metric is available as of June 2023. Hence, we have ranked 20 US cities with the most million-dollar homes in ascending order of the share of million-dollar homes, as of 2023.
20 US Cities with the Most Million-Dollar Homes
20. Austin
Share of Homes Worth At Least $1 Million: 10.6%
Austin, the capital of the US state of Texas, recorded 10.6% of homes worth at least $1 million in 2023. Although the share declined from 2022, it is still one of the highest among other metros in the United States.
19. Denver
Share of Homes Worth At Least $1 Million: 11.0%
The city of Denver is situated in the western United States. As of 2023, 11.0% of the homes in Denver are worth $1 million or more. This share fell from 12.6% in 2022. Hence, Denver ranks among the US cities with the most million-dollar homes.
18. Washington, DC
Share of Homes Worth At Least $1 Million: 11.8%
In 2023, the share of homes that had a worth of at least $1 million was recorded at 11.8% in Washington, DC. The overall share of million-dollar homes decreased since 2022.
17. Charleston
Share of Homes Worth At Least $1 Million: 11.8%
Charleston is a populous city in South Carolina and ranks as one of the US cities with the most million-dollar homes. Homes worth at least $1 million in Charleston increased from 11.1% in 2022 to 11.8% in 2023.
16. North Port
Share of Homes Worth At Least $1 Million: 12.0%
Sarasota County in Florida hosts the US city of North Port. Although the share of homes worth at least $1 million decreased year-over-year, as recorded in July 2023, these homes had a share of 12.0%.
15. West Palm Beach
Share of Homes Worth At Least $1 Million: 13.5%
The Florida-based city of West Palm Beach is positioned to the west of the adjacent Palm Beach. In 2023, 13.5% of the homes in the city had a worth of at least $1 million. The million-dollar home share increased from 13.1% in 2022.
14. Frederick
Share of Homes Worth At Least $1 Million: 13.9%
Frederick is a city located in Maryland. It ranks among the US cities with the most million-dollar homes since it holds a share of 13.9% of homes worth $1 million or above, one of the highest among other US metros.
13. Miami
Share of Homes Worth At Least $1 Million: 14.3%
Miami is a coastal metropolis based in Florida. As of 2023, 14.3% of the city’s homes are worth at least $1 million. This share of million-dollar homes has increased in Miami’s housing market since 2022.
12. Boston
Share of Homes Worth At Least $1 Million: 21.5%
Boston is the capital of Massachusetts and holds a high share of million-dollar homes. 21.5% of the homes in the city were worth at least $1 million as recorded in July 2023. This share went up since the preceding year, 2022.
11. Bridgeport
Share of Homes Worth At Least $1 Million: 25.8%
Bridgeport is a populous city situated in the US state of Connecticut. As of 2023, the city’s share of homes which had a worth of at least $1 million were reported to be 25.8%. The million-dollar homes share was previously 23.1% in 2022.
10. New York
Share of Homes Worth At Least $1 Million: 28.6%
The popular New York City is situated at the southern tip of New York State. In 2023, NYC had one of the highest shares of million-dollar homes among other US metros. 28.6% of the homes in the city were reported to be worth $1 million or above.
9. Seattle
Share of Homes Worth At Least $1 Million: 33.0%
Seattle is a seaport city in the US state of Washington. The share of million-dollar homes in the city was 33.0% in 2023 which was high although the share declined year-over-year.
8. Oxnard
Share of Homes Worth At Least $1 Million: 34.5%
Oxnard is located in Ventura County, California. In 2023, 34.5% of the homes in the city had a worth of at least $1 million. Therefore, Oxnard ranks as one of the US cities with the most million-dollar homes.
7. Honolulu
Share of Homes Worth At Least $1 Million: 38.0%
Honolulu is the capital of Hawaii. Million-dollar homes share in the city dropped from 41.8% in 2022 to 38.0% in 2023. The city still holds one of the most-million dollar homes among other US cities.
6. Los Angeles
Share of Homes Worth At Least $1 Million: 38.1%
38.1% of the homes in Los Angeles were worth at least $1 million in 2023. This makes the city one of the 20 US cities with the most million-dollar homes.
Click to continue reading and see 5 US Cities with the Most Million-Dollar Homes.
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Disclosure: None. 20 US Cities with the Most Million-Dollar Homes is originally published on Insider Monkey.