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Market Study: Towns With the Most $1 Million-Plus Homes

[1]Home prices may seem as if they’re declining in some parts of the country, but they've also dramatically risen over the past two and a half years since the onset of the pandemic. Resulting from this rapid growth, homes valued at $1 million or more have become more common throughout much of the U.S. [2]

LendingTree recently analyzed the nation’s metropolitan areas where houses valued at $1 million or more are most prevalent, [3] inquiring how common $1 million-plus homes are in the nation’s 50 most expensive micropolitan areas, —referred to as “towns”— with populations between 10,000 and 50,000.

On average, million-dollar homes are more common in the nation’s most expensive towns rather than in its largest metros.

Key findings:

Towns with the highest share of million-dollar homes:

1. Vineyard Haven, Massachusetts

2. Jackson, Wyoming

3. Edwards, Colorado

Towns with the lowest share of million-dollar homes:

1. Fernley, Nevada

2 (tie). Cedar City, Utah

2 (tie). Pullman, Washington

Why are $1 million-plus homes so common in some towns?

On the surface, it may seem counterintuitive to think of towns as places where million-dollar homes frequently pop up. Towns are often thought of as cheaper than their more urban counterparts.

In some instances, this holds true. Certainly, a town like Sheridan, Wyo. (15th in our study), is considerably less expensive for homebuyers than a place like New York City. That said, other towns, like Jackson, Wyo., are among the most costly places to buy a home in the U.S.

The reasons why some towns can be so expensive are complex, but expensive towns in many cases tend to be popular vacation spots for wealthy individuals who don’t necessarily earn their money locally and can afford to spend top dollar on real estate. This is why, despite their high prices, large shares of the homes in some of the nation’s most expensive towns sit vacant [4] for most of the year.

On top of that, rural areas often see a lack of housing development because construction is seen as too costly and not profitable enough for builders. This lack of construction can put upward pressure on home prices, which means that people have to compete for a limited number of houses. This can be true even in towns that aren’t popular vacation destinations.

To read the full report, including more charts, methodology and tips on homebuying, click here [2].