According to a recent report from Zillow, there are 550 cities in America with a median home price of $1 million. But none of these cities made Zillow’s list of the top 10 hottest housing markets for 2024. This difference speaks to the extent to which the American housing market is multitracked.
In one orbit are Americans who can afford to buy a home in a $1 million zip code, or who are locked into that zip code with a low-interest mortgage. The other trajectory involves Americans who were barely priced out of the housing market before the pandemic but now find themselves further adrift by high interest rates and low availability of affordable housing. ing. The United States is becoming a nation of winners and losers when it comes to real estate ownership.
Cities with average home prices over $1 million are not new. The reality is that most American home buyers didn’t expect to live in places like Malibu, California or Darien, Connecticut. They also didn’t expect the purchase to come with a seven-figure price tag in a relatively middle- to upper-middle-class enclave that epitomizes the American dream.
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Topping the list is California, with 210 cities where home values ​​are $1 million. Most of these cities are in the metropolitan areas around Los Angeles and San Francisco, but also include the San Diego and San Jose metropolitan areas. On the East Coast, the New York and Boston metropolitan areas make up the bulk of the million-dollar market, with Washington DC and Miami, Florida also making an appearance.
The irony is that many of the cities on the Million Dollar List and their surrounding metropolitan areas are the same cities that Americans once moved to to succeed. These are becoming the cities that Americans move to, but only if they are already successful. A $1 million home price is twice the median home price in the United States.
trend
Americans are responding by moving to cities with lower costs of living and more affordable housing. America’s Sunbelt region, which stretches from Florida to Arizona and north to the Carolinas, is experiencing unprecedented population growth. Even colder markets like Cleveland, Ohio and Buffalo, New York are becoming destinations for Americans seeking affordable housing opportunities, according to Zillow’s 2024 list of the top 10 hottest real estate markets in America. It has become.
It’s also worth noting that most of the cities on Zillow’s list of the top 10 most popular housing markets have median home prices near or below the national average. Compare this to the fact that none of the $550 million cities made the top 10 list, and it’s hard to ignore the reality that America’s housing market is almost completely polarized.
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This article These two data points illustrate the reality that there are two housing markets in America originally appeared on Benzinga.com.
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