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Million Dollar ZIPs

map, home prices, for sale, America, U.S., United StatesIncreasing home prices aren’t a trend that just the middle and lower classes are experiencing—those in the million-dollar range are noticing, too. In fact, some of those that used to not have million-dollar price tags now do, according to research by Zillow.

Zillow examined the distribution of single-family home and condominium Zestimates across 29,991 different ZIP codes starting in 2007, considering areas with more than 10 percent of properties valued at 1 million or more to be a million-dollar area for the year. Compared to the national Zillow Home Value Index, which rests at $200,000, the average million-dollar ZIP had a Zillow Home Value Index of $900,584.

In 2007, there were 1,108 ZIP codes (3.77 percent of all examined) that were considered “million-dollar ZIPs". Though in 2014 that figure had decreased to 958 (3.26 percent), that number has now increased to 1,280 (4.35 percent) as of May of this year. .

Property values are a big factor in million-dollar ZIP codes, with many concentrated in coastal markets. According to Zillow, of the 346 ZIP codes that were considered million-dollar ZIPs, 114 (32.9 percent) are on the West Coast in Seattle, Washington; Portland, Oregon; San Francisco, California; San Jose, California; Los Angeles, California; and San Diego, California. On the East Coast, New York, New York; Boston, Massachusetts; Miami, Florida; and Washington, D.C. made up another 92 new million-dollar ZIPS (26.6 percent).

However, Zillow explained that this growth is furthering the divergence in affordability between costal and interior cities. “Tech hubs” are largely considered million-dollar ZIPs with San Francisco (74 percent) and San Jose (77 percent) leading the way leaving other coastal ZIP codes to catch up. Seattle, for an example of a tech hub, has almost doubled it’s million-dollar ZIP codes from 2007’s 19 ZIP codes to now 38, which is 24 percent of the areas total ZIP codes.

To see the full article and take a look at your specific metro, click here.

About Author: Brianna Gilpin

Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation's leading diversified media and information services companies. To contact Gilpin, email brianna.gilpin@thefivestar.com.

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