Across the United States, more than 800 neighborhoods have a median home value that exceeds $1 million, according to a report by Trulia. This new data means that the number of US homes costing $1 million or more has doubled since 2012.
While the million dollar home trend is more common in coastal cities, the phenomenon has been creeping inland. Since 2018, more than 100 neighborhoods bridged the million-dollar landmark. And cities like Indianapolis, Austin, and Newport gained their first million dollar neighborhoods.
In the Austin suburb of Barton Creek, the median home value crossed the $1 million mark four years ago. According to Cheryl Young, senior economist at Trulia, Barton Creek is a gated neighborhood of luxury real estate. There is also a nearby nature reserve.
Of course, that means Austin joins the ranks of San Jose and San Francisco. Those two cities have long been home to streets lined with million dollar homes. In the metro San Francisco area, 81% of homes cost at least $1 million dollars, according to Trulia’s report.
That impressive percentage is number two on Trulia’s ranking of 100 US metro areas with million dollar homes. San Jose topped the list with a 14% year-over-year increase in million dollar homes.
While more million dollar neighborhoods than ever have been popping up across the country, they largely remain an anomaly. Trulia found that “only” 4% of all homes in the United States are worth $1 million.
A city like San Francisco has such a high percentage because of the high number of wealthy tech professionals. But it’s also because of its much smaller size and population than other expensive cities. This combination of factors impacts other cities on Trulia’s list as well, such as Seattle which holds the ninth spot in percentage of homes that are worth at least $1 million, despite it being only the 18th largest city in the country.
The increasing number of million dollar homes is pointing towards a higher cost of living in metro areas across the country, as the price of available real estate dictates the rest of a city’s economy. For instance, in places like San Francisco and New York City, the income required to live comfortably today easily breaks six figures.
For many average Americans who make salaries well under those figures, such as a security guard who makes an average of nearly $40,000 a year, this puts a “comfortable” life in a major city out of their financial reach and may force them to relocate to more affordable locales.
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