Where Are the Million-Dollar Homes?

In a real estate market where luxury apartments can sell for $100 million or more, we’ve become a bit numb to the value of a mere million. But objectively, $1 million is still about three times the sale price of the median U.S. home (roughly $350,000) — a price very much out of reach for most.

So what makes a house worth a million dollars? While square footage, construction type and quality of finishes will affect value, two homes that are identical on paper can vary wildly in price depending on — you guessed it — location, location, location.

LendingTree recently conducted a study to find out which U.S. metropolitan areas had the highest percentages of owner-occupied homes valued at $1 million or more. While no one area could be shown to have a majority of homes worth a million, San Jose, Calif., home to Silicon Valley tech workers, came closest — with about 47 percent, and the median home value was close too: $968,800. In San Francisco, another tech hub, more than 36 percent of homes were valued at $1 million or more, with a median value of $840,600.

The New York City metropolitan area — where an apartment sold in 2019 for a record $238 million — was fifth on the list, with a median home value of $450,900. (If this number seems low, keep in mind that the metropolitan areas include not just the cities themselves, but also surrounding commuter communities.)

The portion of homes worth $1 million exceeded 10 percent in only five U.S. metropolitan areas, and accounted for less than 1 percent in all 10 metropolitan areas with the lowest percentage of homes in the price bracket, as seen in this week’s chart.

Source link Real Estate

Be the first to comment

Leave a Reply

Your email address will not be published.