The number of cities where the typical home price is at least $1 million has dramatically increased over the past year.

There are now 550 U.S. cities where an average home is worth $1 million or more, according to a new analysis from Zillow — a 12% increase from the same time in 2023 when 491 cities made the list.

What You Need To Know

  • A record number of cities have typical home values of $1 million or more, Zillow says

  • 550 U.S. cities currently have typical home values of at least $1 million

  • A year ago, 491 U.S. cities made the Zillow list

  • A lack of inventory is keeping prices high and pushing them higher in some cities

“Affordability is still a big challenge for buyers, but that hasn’t stopped prices from growing,” Zillow Economic Research Data Scientist Anushna Prakash said in a statement. “Buyers this spring are going to see more options to choose from, but they’ll also see a lot of other buyers wandering through the same open houses. Competition will stay fierce.”

The lack of available homes for sale is keeping prices elevated and pushing values even higher. Even as sales inventory has begun to tick up this spring, a typical home in the U.S. is currently worth 4.2% more than it was last year. Homes in million-dollar cities saw values grow 4.6%.

Zillow anticipates interest rate decreases could actually increase home values, as more buyers enter the market, increasing demand when supply is still tight.

With 210 million-dollar cities, California ranks first among the states. Over the last year, New Jersey saw the largest gains in million-dollar cities, adding 14. The only states to lose million-dollar cities were Florida, Texas and Delaware.

With 106 million-dollar cities, New York City, including parts of New Jersey and Pennsylvania, ranks first among metropolitan areas, followed by San Francisco and Los Angeles.  The New York City area gained 24 million-dollar cities over the past year, while Los Angeles added seven.