Homes Worth $1 Million or More Are Now the Standard in 550 Cities

The typical home is now worth over $1 million in 550 U.S. cities — a figure that’s grown 12% in the last year, Zillow reports.

Many of the country’s most expensive real estate markets are in the largest metro areas. The New York City area alone has 106 cities with home values above $1 million, up from 82 a year ago. (This metro includes parts of New Jersey and Pennsylvania.)

According to the new data from Zillow, which estimates what existing homes are worth to create an index of home values, 210 of the cities with $1 million-plus homes are in California, up from 198 last year.

After New York City, the San Francisco and Los Angeles metro areas have the next most $1 million cities, with 69 and 63, respectively. The count is unchanged for San Francisco compared to a year ago, while the Los Angeles area gained seven.

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Overall, the number of cities where the typical home is worth at least $1 million increased by 59 from a year ago, when the count was 491.

The typical home value in the U.S. is up 4.2% in the past year, rising from $335,200 to $349,200. While the increase in values means that many homeowners have gained home equity, it also means that mortgages are unaffordable for many potential buyers — especially considering that current mortgage rates are still nearly 7%.

"The housing market is tight with few homes available, and competition is still high for attractive homes," Zillow said in a report. "That competitive pressure is pushing home values higher across the U.S."

States with the most $1 million cities

Here's a list of the states that have the most cities where the typical home is worth $1 million or more:

• California: 210 cities (+12 in the last year)
• New York: 66 cities (+8)
• New Jersey: 49 cities (+14)
• Florida: 32 cities (-2)
• Massachusetts: 31 cities (+4)
• Colorado: 21 cities (unchanged)
• Washington: 18 cities (+2)
• Hawaii: 17 cities (+1)
• Texas: 14 cities (-1)
• Maryland: 10 cities (+2)

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