The amount of US homes valued at $1 million or more has nearly doubled since the beginning of the pandemic, a new report has found.
According to data released by real estate brokerage Redfin this month, a record 8 percent of American houses (so, six million properties) are now worth at least $1 million. If that number seems massively increased compared to what it was before Covid-19, it’s because it is: Two years ago, only 4.8 percent (3.5 million) US homes were valued at $1 million or more.
That nationwide value growth, however, has not been evenly distributed across the country.
The metros of Buffalo, NY; El Paso, TX and Dayton, OH only boast a 0.2 percent million-dollar housing stock. In Elgin, IL — the metro area with the least amount of homes worth $1 million or more — only 0.1 percent of houses were worth $1 million as of this Feb.
In contrast, Redfin found that 88 percent of San Francisco homes and 32 percent of New York homes are worth at least $1 million (up, respectively, from 82 percent and 30 percent in 2020). In Jan., the median sale price of Frisco and San Jose homes was $1.4 million.
The ballooning prices have been hugely beneficial for those who own property but made becoming a homeowner ever more prohibitive for those who don’t already.
“The surge in housing values has turned many homeowners into millionaires, but has pushed homeownership out of reach for a lot of other Americans,” Redfin deputy chief economist Taylor Marr noted in the report. “Incomes have increased, but not as fast as home prices, which means many people are stuck renting or have to move somewhere more affordable if they want to buy a home.”