We’ve all heard the news stories about rent increases in cities like Denver and Seattle, prices tripling over the span of just a few months as people flock from other parts of the United States to these quickly growing metropolitan areas. Rent prices might be increasing because of demand, but the number of million-dollar homes is also on the rise according to an analysis by Trulia.
The year 2012 marked the beginning of a rise of the number of homes that cost a million dollars or more. Since 2012 the number grew from 1.6% to 3%, with metropolitan areas and certain neighborhoods seeing even more of an increase. San Francisco has the largest increase of million dollar homes of 100 metropolitan areas in the United States, with San Jose and Oakland following close by.
The northeast and Hawaii also have seen dramatic increases in the percentages of million dollar homes available on their individual markets. Southern California has seen major increases in million dollar homes partially because the job markets are still growing, and those who have lived in Southern California for years can afford to upgrade to more expensive housing. The report indicated homes that have become worth a million dollars or more, but aren’t necessarily for sale or on the market.
Brooklyn, New York is the home of the Northeast’s greatest concentration of million dollar homes. New York has grown from a 7% share of million dollar homes to nearly 12%. Neighborhoods near Diamond Head Park in Hawaii have also seen an increase in overall prices, and some student areas are now becoming sites for growth and cost increase. The Seattle area has a high concentration of million dollar homes, increasing its percentages nearly threefold since 2012.
There are a few reasons why there are more million dollar homes now than there ever have been before. One is that people are pouring capital into their homes, and another factor is that land in some areas is highly desirable. The geography of million dollar homes is changing as the United States changes itself.
More: Million Dollar Creep: Where Seven Figure Homes are the New Normal, Trulia, May 19, 2016.