Rising house prices in the U.S. are driving affordability issues, especially for first-time buyers. This surge is fueled by low inventory and high demand, pushing many out of the market. The increased financial burden strains household budgets, exacerbating wealth inequality and potentially slowing overall economic growth.
Read more: First-Time Homebuyer Guide
The pandemic further influenced housing dynamics, with many homeowners opting to stay in their current homes to benefit from low mortgage rates, thus intensifying competition and driving up prices.
In 2023, nearly one in 10 homes were worth at least $1 million, according to real-estate analysis firm Redfin.
Below is a map showing the 15 cities with the highest percentage of homes valued at $1 million or more.
Nearly 8.2 percent of homes in the U.S. were valued at $1 million or more in June 2023, a slight decrease from the 8.6 percent peak in June 2022.
Read more: How Much House Can You Afford?
California continues to dominate the list of cities with the highest share of million-dollar homes in the top 15.
San Francisco tops the list with 81% of its homes valued at $1 million or more, followed closely by San Jose at 80%. These cities are part of the broader San Francisco Bay Area, known for its high real estate values due to the tech industry’s presence and the number of high-paying jobs. Other California cities like Anaheim, Oakland, and Los Angeles also feature prominently on the list.
The top 15 cities by the percentage…
