The U.S. Will Gain 23 New $1 Million Cities Within the Next Year

There are currently 197 cities in the U.S. with a median home value of $1 million or more, with 33 of those cities breaking the $1 million threshold in just the past year

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Zillow

Aug 09, 2018, 08:00 ET

SEATTLE, Aug. 9, 2018 /PRNewswire/ -- Over the next year, 23 more cities across the U.S. will make Zillow's "$1 Million City List," defined as a city with a median home value of $1 million or more.

The U.S. currently has 197 $1 million cities, with 33 of those breaking the seven-figure threshold in just the past 12 months, according to a new Zillow^® analysis.

While home values in the U.S. are expected to rise 6.6 percent over the next year, some hot markets, especially in California, are expected to have home-value appreciation in the double digits. The San Francisco metro is forecasted to gain seven $1 million cities by June 2019, with Fairfax, East Palo Alto and Broadmoor Village expected to appreciate the most among those cities. San Francisco currently has 46 $1 million cities -- more than any other metro in the analysis.

Pricey cities aren't the only places experiencing rapid home-value growth -- home values are rising across the country, with the median home value in the U.S. higher than ever before. Over the past year, U.S. home values rose over 8 percent to $217,300. According to the most recent Zillow Housing Aspirations Reportⁱ, more than 70 percent of renters say they often think about owning a home, but 66 percent of them cite saving for a down payment as one of the key impediments holding them back.

The Los Angeles metro is expected to gain five new $1 million cities in the next year, and the New York metro will gain three. Boston, Seattle and San Jose will each have two cities that will appreciate to a median home value of $1 million or more in the next year.

"The number of million-dollar cities has doubled over the past five years. These markets tend to be affluent and exclusive suburbs with very strict building restrictions in communities adjacent to finance and tech hubs," says Aaron Terrazas, Zillow senior economist. "Although home value growth is expected to slow over the next year, particularly at the high end of the housing market, the number of cities where more than half of homes are valued in the seven digits is expected to jump to a new all-time high over the next 12 months."

Biltmore Forest, N.C., in the Asheville metro, is forecast to be the first $1 million city in North Carolina. The current median home value in Biltmore Forest is $978,900. Zillow forecasts the median home value in Biltmore Forest to rise 2.7 percent over the next year, to $1,005,018.

Anna Maria, Fla., in the Sarasota metro, is expected to become the first $1 million city there. The current median home value is $964,200 and is forecast to reach $1,009,404 within the next year.

Here's the list of 23 cities that are forecast to become $1 million cities over the next year:

City	Metro	June 2018 Median Home Value	June 2019 Median Home Value
Burbank	San Jose, Calif.	$999,500	$1,182,061
Morgan Hill	San Jose, Calif.	$984,800	$1,107,926
East Palo Alto	San Francisco, Calif.	$963,900	$1,090,864
Los Alamitos	Los Angeles, Calif.	$988,300	$1,086,400
Broadmoor Village	San Francisco, Calif.	$984,300	$1,083,404
Daly City	San Francisco, Calif.	$986,200	$1,081,408
Alameda	San Francisco, Calif.	$996,000	$1,069,036
La Habra Heights	Los Angeles, Calif.	$982,300	$1,059,783
San Clemente	Los Angeles, Calif.	$953,400	$1,052,136
Seal Beach	Los Angeles, Calif.	$964,900	$1,044,530
Fairfax	San Francisco, Calif.	$893,700	$1,043,621
Belmont	Boston, Mass.	$984,900	$1,035,244
Dana Point	Los Angeles, Calif.	$936,700	$1,030,556
Woodbury	New York, N.Y.	$965,800	$1,029,055
Franklin Lakes	New York, N.Y.	$993,400	$1,027,625
Roslyn	New York, N.Y.	$964,500	$1,026,293
Bellevue	Seattle, Wash.	$948,100	$1,022,917
Brisbane	San Francisco, Calif.	$958,200	$1,022,569
Lexington	Boston, Mass.	$975,500	$1,013,900
Anna Maria	North Port-Sarasota-Bradenton, Fla.	$964,200	$1,009,404
Sammamish	Seattle, Wash.	$945,000	$1,006,068
Newark	San Francisco, Calif.	$919,200	$1,005,404
Biltmore Forest	Asheville, N.C.	$978,900	$1,005,018

Number of $1 million cities within the largest U.S. metros:

Metropolitan Area	June 2018 Zillow Home Value Indexⁱⁱ (ZHVI)	Number of Million- Dollar Cities	City with Highest Median Home Value	Highest Median Home Value June 2018
United States	$217,300	197	Atherton, Calif.	$6,870,300
New York, Northern New Jersey	$429,300	41	Wainscott	$3,533,400
Los Angeles-Long Beach-Anaheim, CA	$646,300	28	Beverly Hills	$3,480,500
Chicago, IL	$220,400	2	Kenilworth	$1,345,700
Dallas-Fort Worth, TX	$229,400	3	Westlake	$1,617,100
Philadelphia, PA	$228,100	0	Radnor	$726,900
Houston, TX	$198,600	0	Bellaire	$795,500
Washington, DC	$399,500	3	Travilah	$1,224,800
Miami-Fort Lauderdale, FL	$272,900	4	Fisher Island	$3,183,400
Atlanta, GA	$204,600	0	Druid Hills	$606,000
Boston, MA	$455,600	7	Weston	$1,444,000
San Francisco, CA	$953,600	46	Atherton	$6,870,300
Detroit, MI	$154,900	0	Orchard Lake	$665,000
Riverside, CA	$356,800	0	Indian Wells	$716,300
Phoenix, AZ	$254,700	1	Paradise Valley	$1,737,800
Seattle, WA	$492,700	5	Medina	$2,834,000
Minneapolis-St Paul, MN	$261,300	0	Orono	$722,800
San Diego, CA	$583,700	5	Del Mar	$2,618,700
St. Louis, MO	$161,400	0	Ladue	$844,700
Tampa, FL	$204,600	0	North Redington Beach	$638,500
Baltimore, MD	$264,800	0	Dayton	$718,600
Denver, CO	$397,700	1	Cherry Hills Village	$1,983,200
Pittsburgh, PA	$141,300	0	Fox Chapel	$655,200
Portland, OR	$391,200	0	Raleigh Hills	$710,100
Charlotte, NC	$195,800	0	Marvin	$673,700
Sacramento, CA	$400,100	0	Granite Bay	$770,800
San Antonio, TX	$185,000	0	Olmos Park	$709,000
Orlando, FL	$226,900	0	Bay Hill	$513,600
Cincinnati, OH	$160,900	0	Village of Indian Hill	$966,200
Cleveland, OH	$141,100	0	Gates Mills	$510,500
Kansas City, MO	$181,400	0	Mission Hills	$975,300
Las Vegas, NV	$264,300	0	Mount Charleston	$402,900
Columbus, OH	$182,200	0	New Albany	$502,200
Indianapolis, IN	$152,800	0	Meridian Hills	$555,600
San Jose, CA	$1,287,600	18	Los Altos Hills	$5,070,900
Austin, TX	$296,500	2	West Lake Hills	$1,097,300

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ⁱ The Zillow Housing Aspirations Report is a semi-annual survey computed from an IPSOS poll which combines a sample of 10,000 U.S. adults from 20 U.S. core-based statistical area (CBSA) metropolitans (Atlanta, Boston, Chicago, Dallas, Denver, Detroit, Los Angeles, Las Vegas, Miami, Minneapolis, New York, Philadelphia, Phoenix, St. Louis, San Diego, San Francisco, San Jose, Seattle, Tampa, and Washington, D.C.) age 18+, surveyed online in English. This version of the survey was fielded from March 16-28, 2018. The survey has a credibility interval of plus or minus 1.1 percentage points for all respondents from the 20 U.S. metropolitans and approximately 5.0 percentage points for an individual U.S. metropolitan. Post-hoc weights were made to the population characteristics on gender, age, region, and race and ethnicity. For more information about conducting research intended for public release or Ipsos' online polling methodology, please visit the Public Opinion Polling and Communication page.
ⁱⁱ The Zillow Home Value Index (ZHVI) is the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted.