The great American economic divide continues apace. A new report by the real estate platform Trulia concludes that more than 3 million homes are currently worth $1 million or more–a stunning increase that more than doubles the count from 2012.
Back then, 1.5% of all U.S. homes had reached or passed the $1 million mark just five years after the subprime mortgage crisis that resulted in the collapse of the global economy and more than 6 million homeless families in the U.S. alone. Today, it’s increased to a whopping 3.6 percent. The full map shows prices across the U.S., but take California, for example:
[Screenshot: Felipe Chacon/Trulia]
According to Trulia, the typical U.S. home price appreciation has been 7.6% over the last year, but there are areas that have experience double-digit growth. California is leading them: In San Jose, 70% of all homes are worth a million dollars or more, compared to 55.7% just last year. San Francisco follows with 81%, a 13.7% increase from 2017. Of the top 10 U.S. metro areas with the higher concentration of million-dollar homes, seven are in the Golden State. The exceptions: Honolulu (with 19.8%), Seattle (with 13.3%), and Long Island, New York (with 10.1%).
Of the 838 neighborhoods with a median home price of $1 million or more across the U.S.–Trulia only looked at areas that have at least 20 homes with actual value estimates–two thirds are in California, and 105 of those neighborhoods are new to the millionaire home club. In total, 82.8% of them are in California, New York, Florida, and Washington. The rest are distributed in other parts of the United States. Austin, for example, just got its first $1 million neighborhood this year: Barton Creek has a median value of $1.02 million up from $935,000 last year.
The number of $1 million dollar homes nationwide has doubled in just six years. It’s possible we’re reaching the full extent of new real estate bubble, as some experts suggest. At the very least, a majority of Americans seem to think so.
You can explore the full nationwide map here.
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