US Homes Top $1 Million Value in Record Numbers

The number of homes worth at least $1 million are at record highs, with nearly one in ten US homes at the million dollar mark, according to Redfin data compiled from public records and MLS data as of June 2024.

Roughly about 8 million homes as of June 2024 were valued at $1 million. Last year this time, about 7 million were, and this time in 2019 before the pandemic, there were only about 3.5 million.

The median sale price rose for all homes at all prices, across the board. The median for US homes nationwide was up four percent year over year in June, and up nine percent for luxury homes, according to the data.

The share of homes worth at least $1 million rose year over year in all but three US states. The outliers were Austin, where it fell by ten percent, and Indianapolis and Houston, where it remained the same.

California is leading the pack, gaining more million-dollar homes faster than any other state. Anaheim, San Diego and Los Angeles are winning the race with million-dollar-homes up anywhere from 40 percent to 60 percent. A whopping 80 percent of homes in San Francisco and San Jose are worth more than seven figures.

Low inventory is the culprit behind the rising prices.

Inventory is still about 30 percent below pre-pandemic levels because current homeowners are handcuffed by their existing low-interest mortgages.

Many buyers, especially first-time homebuyers and many of them Millennials, may not be able to afford to purchase in a climate with high mortgage rates and increased homeowners’ insurance rates.

Recent drops in mortgage rates is encouraging some prospective buyers by improving their purchasing power, Redfin said.

— Christina Previte