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March 10, 2022
Higher home prices mean that more are valued above the $1 million mark. The number of homes that are $1 million or more has nearly doubled since before the pandemic began, according to a new study released by Redfin.
Nationwide, 8.2% of homes—or 6 million—were valued at $1 million or more in February—a record high, Redfin reports. That is up from 4.8% prior to the pandemic just two years ago.
Anaheim, Calif., has seen the largest jump in that home price bracket, with 55% of its housing stock now worth $1 million or more—up from 27% two years ago, according to the study. That also is the first time Anaheim has passed the 50% threshold in its market for such prices. Meanwhile, San Francisco continued to have the most overall properties worth at least $1 million.
“The surge in housing values has turned many homeowners into millionaires, but has pushed homeownership out of reach for a lot of other Americans,” says Taylor Marr, Redfin’s chief economist. “Incomes have increased, but not as fast as home prices, which means many people are stuck renting or have to move somewhere more affordable if they want to buy a home.”
Home prices have climbed rapidly due to high housing demand and a limited number of homes for sale. During the four weeks ending Feb. 27, the number of homes for sale fell 50% compared to two years earlier and is at an all-time low.
Where $1 Million–Plus Homes Are the Most Prevalent
Seven of the top 10 metros for $1 million-plus homes are located in California, according to Redfin’s analysis. The housing markets where you’ll find the most homes worth $1 million or more are:
San Francisco: 88.7% of homes were worth at least $1 million in February
San Jose, Calif.: 85.9%
Anaheim, Calif.: 55.3%
Oakland, Calif.: 55.1%
San Diego: 40.4%
Los Angeles: 38.5%
Honolulu: 37.1%
Seattle: 36.5%
New York: 32.1%
Oxnard, Calif.: 31.2%
Source: “A Record 8% of U.S. Homes Are Worth at Least $1 Million,” Redfin (March 9, 2022)