The number of cities where the typical home value is least $1 million in 2020 had its largest increase in at least a decade, according to an analysis by Zillow.
According to Zillow’s analysis, there now are 312 million-dollar cities in the U.S., up 104 from five years ago. Zillow said the typical value of a home in the U.S. is about $263,000.
“In 2020 home values soared nationwide because of incredible demand across all price tiers, which we expect to continue well into 2021,” Zillow Senior Economist Chris Glynn said in a release. “Despite the label, there are homes available in these communities for less than $1 million, but buyers must be realistic about their wish list and act quickly in the current market, especially since homes are selling in a matter of days in many places.
“For sellers, it is possible to capitalize on the recent growth in these markets and relocate to far less-expensive markets – particularly with an increase in remote work offering flexibility in the job market,” Glynn said.
Zillow said 70 percent of the million-dollar cities are in nine coastal metro areas. Sixty-one are in the San Francisco metro area, 51 are around New York City and 39 are in the Los Angeles area.
The metro areas of San Jose, Calif. (20 cities); Boston (11); Miami-Fort Lauderdale (11); Seattle (9); and Washington, D.C., (8) also have multiple cities where the typical home price exceeds $1 million.
Zillow said the highest typical home value in the country is in Atherton, Calif., near San Francisco (about $6.6 million.); followed by Hunts Point, Wash., near Seattle ($6 million); Sagaponack, N.Y. and Jupiter Island, Fla. (Port St. Lucie metro area), with typical values over $5 million.
Zillow said there are six additional cities with typical home values over $4 million, 21 more with values over $3 million, and another 38 with values over $2 million.
“An increased demand in places like Potomac and other more expensive areas around the county is happening because of the pandemic-driven need for more indoor and outdoor space, home offices, pools and more,” said Samer Kuraishi, president of The ONE Street Company, a boutique real estate firm in Washington, D.C. “We're seeing more buyers from afar using technology to tour homes and buy ‘sight unseen.’ The sellers who have a great media package, including a floor plan with dimensions, virtual staging and 3D imaging, have the edge in such a competitive market.”
Historically, Zillow said the list of million-dollar cities is dominated by areas that offer natural amenities like proximity to the ocean and mountains.