2020 was a fantastic year for “million-dollar cities” according to a Zillow analysis, with the total number spiking by 45 despite a fragile economy and the pandemic. This is the largest increase in a decade, bringing the total of million-dollar cities in the United States to 312. Million-dollar cities get their name when a city’s typical home is at least $1 million and this is expected to occur for two more cities in a few months into 2021.
While there is a large number of million-dollar cities, they are mostly congregated geographically. 39 are within the Los Angeles area, 51 surround New York City, and 61 are situated in the San Francisco metro area. In total, 70% of the 312 exist within only nine coastal metro areas that is attributed to their proximity to natural amenities, like mountains and oceans.
“In 2020 home values soared nationwide because of incredible demand across all price tiers, which we expect to continue well into 2021,” explained Chris Glynn, a Zillow senior economist. “For sellers, it is possible to capitalize on the recent growth in these markets and relocate to far less-expensive markets – particularly with an increase in remote work offering flexibility in the job market.”
Among these million-dollar cities, Atherton near San Francisco takes the top spot with the highest average home value in the United States with about $6.6 million. In the number two spot is Hunts Point near Seattle where typical house values sit around $6 million. Sagaponack, New York and Jupiter Island, Florida tie for third, averaging just over $5 million each.
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