In 146 cities in the US average home prices rose to at least $1 million for the first time in 2021, making for a total of 481 cities now having home prices over the $1 million mark, according to real estate portal Zillow. The San Francisco and New York metro areas each contain 76 cities with average house prices over $1 million, the Los Angeles metro area 57 cities and San José 22.
“The surge in demand for housing last year sent home values skyrocketing, even in places where prices already were sky-high, and that helped tip a record number of cities into the million-dollar club,” said Jeff Tucker, Zillow senior economist. “The locations of these newly seven-figure towns bust the myth that everyone fled California and the Northeast last year, as California, Massachusetts and New York led the pack for the most new cities with home values above $1 million.”
The typical US home gained 19.6% in value in 2021, a record setting year for home appreciation.
The most expensive city in the country is Indian Creek, Florida, where houses on the 300-acre island in Biscayne Bay in Miami, typically are valued at $28.3 million, followed by Atherton on the San Francisco peninsula at $7.7 million.