Welcome to Extreme Investor Network, where we provide unique insights and expert advice on all things personal finance. Today, we are diving into the latest trends in the real estate market, specifically the rise of “million-dollar cities” across the United States.
According to a recent analysis by Zillow, there are currently 550 “million-dollar” cities in the U.S. These are areas where the typical home is valued at $1 million or more. This marks a significant increase from previous years, with 59 more cities reaching this milestone compared to 2023.
The surge in million-dollar cities can be attributed to the mortgage lock-in effect. This phenomenon has deterred homeowners with extremely low interest rates from listing their properties for sale, leading to limited supply in certain markets and driving up sale prices for available properties.
California leads the pack with the most million-dollar cities, boasting 210 in total. This is 12 more than the previous year and more than the next five states combined. However, despite the increase in million-dollar cities, some areas have actually lost this coveted status.
In regions where homeowners already had higher interest rates, the lock-in effect is not as strong, leading to an increase in supply as more sellers are willing to list their homes for sale. Florida and Texas, two states with high-cost luxury markets, saw a decrease in million-dollar cities, but it remains to be seen if this is a long-term trend.
Overall, the real estate market continues to be a fascinating landscape to watch, with fluctuations in million-dollar cities and unique trends emerging across the country. Stay tuned to Extreme Investor Network for more insider tips and expert analysis on personal finance topics like this and more.
