More housing markets pass the $1 million mark; San Jose sees the biggest jump in million-dollar homes

Aly J. Yale
The Mortgage Reports contributor

The move toward million-dollar housing

Million-dollar homes are on the rise. According to new data, over 100 new neighborhoods joined the $1 million housing market this year, and in one city? Million-dollar houses now make up 81 percent of all housing in the area.

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Hitting the $1 million mark

According to a new analysis, more than 100 new communities saw median home values surpass $1 million this year. Currently, over 3 million homes are worth $1 million or more, accounting for 3.6 percent of all housing nationwide. That’s nearly double the share of million-dollar homes from six years ago.

San Jose, California saw the biggest bump in million-dollar homes over the last year, with a 14.3 percentage point increase since October 2017. A whopping 70 percent of homes in the area are at or over the $1 million mark

San Francisco experienced the second-biggest jump. A full 81 percent of houses in the area cost $1 million or more.

Other cities to see big jumps in million-dollar listings were Oakland, Orange County, Los Angeles, San Deigo and Ventura County, California; Honolulu; Seattle; and Long Island, New York.

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The rise of million-dollar homes

A total of 838 U.S. neighborhoods have a median home value of $1 million or more. Two-thirds of those communities are in California, where nearly 30 percent of all neighborhoods have a median value of at least $1 million.

“It’s clear the Golden State more than lives up to its moniker,” wrote Trulia Housing Economist Felipe Chacon. “And given that so many homes there are worth $1 million-or-more, it should come as little surprise that California is also home to the largest number of million-dollar neighborhoods – those enclaves where half of all homes are worth at least a cool million bucks.”

New York, Florida, Washington and Colorado fill out the top five in terms of million-dollar communities.

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Austin, Texas got its first million-dollar neighborhood this year, with Barton Creek’s median value creeping just above the $1 million mark in October. Indianapolis and Newport, Rhode Island also saw their first million-dollar communities in 2018.

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