The U.S. has lost 58 'million-dollar' cities since the market's peak in July

Rhea-AI Summary

The U.S. housing market has seen a significant correction, with a loss of 58 'million-dollar' cities since July 2022, bringing the total to 464, according to a new analysis by Zillow. Average home values in these cities have decreased by $114,500. The most affected areas include California, which lost 20 cities, and metro regions like New York and San Francisco. The typical U.S. home has lost 4.1% of its value since last July, while homes in million-dollar cities have declined by 6.3%. Despite these declines, sellers can still achieve higher prices than last year due to ongoing demand, though affordability remains a challenge.

Positive

• Sellers can achieve higher prices than last year in most markets.
• The typical U.S. home value remains higher than pre-pandemic levels.

Negative

• 58 million-dollar cities lost since July 2022.
• Average home value in million-dollar cities decreased by $114,500.
• Typical U.S. home has lost 4.1% in value since July.

The rebalancing of the housing market has been felt the most in areas where affordability is stretched

• There are currently 464 U.S. cities where the typical home value is $1 million or more. There were 522 at the housing market's peak last July.
• There are 190 "million-dollar" cities in California alone.
• The New York, San Francisco and Los Angeles metro areas have the most million-dollar cities, though they have also lost the most million-dollar cities since the market peaked.

SEATTLE, March 13, 2023 /PRNewswire/ -- The U.S. has lost 58 "million-dollar" cities — cities where the typical home is worth $1 million or more — since the housing market peaked last July, a new Zillow® analysis shows. In the six months after the peak, the typical home in million-dollar cities lost an average of $114,500 in value.

The housing market is singing a much different tune than in recent years as it continues to rebalance toward normal. Last year set a record for the most new million-dollar cities amid supercharged housing demand. Both demand and supply hit the brakes in the second half of 2022 after mortgage rates spiked. Buyers, stretched thin in what they could afford, flocked to lower-priced homes, a reversal from earlier in the pandemic. With fewer buyers able to use the support of historically low interest rates to help afford homes with a high price tag, expensive markets felt the biggest impact of the slowdown.

"Unfortunately for buyers, mortgage rates have overwhelmed these price cuts. But even though competition is picking up as we enter home shopping season this spring, it's a much friendlier environment to buy a home for those who can make the finances work," said Anushna Prakash, economic data analyst at Zillow. "Sellers may have missed the market's peak, but they can still get a higher price for their homes than last year in most markets, and certainly more than they would have before the pandemic. Getting the pricing right and boosting a home's online curb appeal are keys to success for this spring's sellers."

The typical U.S. home is worth 4.1% less than it was last July, according to the Zillow Home Value Index. In current million-dollar cities, the typical home has lost 6.3% of its value during that time, on average.

Thirty-two states are home to at least one million-dollar city. There were 33 states with one such city last summer, but Montana's lone million-dollar city has since fallen off that list. Gallatin Gateway, a small community in the Bozeman area, has seen its typical home value fall to $987,824 — down about $117,000 since peaking in June.

Coastal states continue to dominate the list. Of the 464 current million-dollar cities, 387 are in a state on either U.S. coast. California alone has 190 million-dollar cities, more than the next six states combined. There are 37 cities with a typical home value of more than $3 million, 36 of them in coastal states and one in Hawaii.

California has also lost 20 million-dollar cities since July, easily more than any other state. Texas and New Jersey are next, losing five million-dollar cities each. Florida has lost four, and Utah and Hawaii have each lost three.

At the metro level, the New York City area has the most million-dollar cities, with 90. San Francisco (67 million-dollar cites), Los Angeles (53) and San Jose (21) are next, with Boston (19) holding enough strength to round out the top five, after tying with Seattle at this time last year.

Los Angeles has lost the most million-dollar cities since July, with seven falling below that mark. The New York City metro area has lost six, San Francisco has lost four, and Austin has lost three during that time.

Million-Dollar Cities by State
State	$1 Million Cities: January 2023	$1 Million Cities: July 2022
California	190	210
New York	64	66
New Jersey	32	37
Florida	28	32
Massachusetts	26	27
Colorado, Washington	16	18
Hawaii	14	17
Texas	10	15
Maryland	7	7
South Carolina	6	6
Connecticut, Virginia	5	6
Utah	4	7
Minnesota, Tennessee	4	5
Nevada, Wyoming	4	4
Missouri, North Carolina	3	5
Illinois	3	3
Arizona, Idaho	2	3
New Hampshire, Ohio, Wisconsin	2	2
Delaware, Georgia, Kansas, Michigan, Pennsylvania, Rhode Island	1	1
Montana	0	1

 

Metro Areas With the Most Million-Dollar Cities
Metro Area	$1 Million Cities: January 2023	$1 Million Cities: July 2022
New York, NY	90	96
San Francisco, CA	67	71
Los Angeles, CA	53	60
San Jose, CA	21	23
Boston, MA	19	20
Seattle, WA	15	17
Miami–Fort Lauderdale, FL	15	16
Washington, DC	11	12
Santa Maria–Santa Barbara, CA	9	9
Santa Rosa, CA	8	8
San Diego, CA	7	8
Vineyard Haven, MA	7	7
Dallas–Fort Worth, TX	6	8
Denver, CO	6	7
Salinas, CA	6	6

About Zillow Group

Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life's next chapter. As the most visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting, or financing with transparency and ease.

Zillow Group's affiliates and brands include Zillow®; Premier Agent®; Zillow Home Loans℠; Zillow Closing Services℠; Trulia®; Out East®; StreetEasy®; HotPads®; and ShowingTime+℠, which includes ShowingTime®, Bridge Interactive®, and dotloop® and Listing Media Services. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).

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SOURCE Zillow

FAQ

How many million-dollar cities are there in the U.S. as of March 2023?

As of March 2023, there are 464 million-dollar cities in the U.S.

What is the average home value decline in million-dollar cities since July 2022?

The average home value in million-dollar cities has decreased by $114,500 since July 2022.

Which state has the most million-dollar cities?

California has the most million-dollar cities, totaling 190.

What percentage has the typical U.S. home decreased since July 2022?

The typical U.S. home value has decreased by 4.1% since July 2022.

What metro areas have the highest number of million-dollar cities?

The New York City metro area has the highest number with 90 million-dollar cities.