According to an analysis [1] by Trulia [2], there are currently more than 3 million homes worth more than $1 million in the U.S., or about 3.6 percent of all homes nationwide, which is more than double the share of million-dollar U.S. homes in 2012.
On account of widespread and robust home value growth, the typical U.S. home appreciated 7.6 percent over the past year, with many markets experiencing double-digit growth. The share of these homes is mainly concentrated in pricey coastal areas that have experienced rapid price appreciation.
Areas with sky-high home values like San Francisco Bay Area and other West Coast metros topped the list of places with the biggest jump in the share of $1 million homes from 2017-2018. Long Island, New York was the only metro not on Pacific coast to make it in Trulia’s top 10 of markets with the biggest increase in million dollar homes.
The analysis included more than 15,100 larger neighborhoods nationwide. Of which, 838 had a median home value of $1,000,000 or more, roughly two-thirds of which are in California. California leads the list with 29 percent of neighborhoods with a median home value of $1 million followed by New York, Florida, and Washington, demonstrating the immense value of housing in coastal states in general. Colorado occupied the fifth spot with 27 million dollar neighborhoods, most of which are in the Boulder area.
In the entire city of San Francisco, only 15 neighborhoods remain where the median home is worth less than $1 million. Beyond San Francisco, smaller Bay Area cities dominate the list of places with the highest share of $1 million neighborhoods, the analysis found.