Number of Homes Priced at $1M or More Hits Highest Share of All Time

As home prices in the U.S. continue to soar, the number of homes valued at $1 million is also increasing. According to housing market platform Redfin, nearly one in 10 homes, or about 8.5%, is valued at $1 million or more, the highest share of all time. This has increased from 7.6% a year ago and is more than double the 4% seen before the pandemic. Although we've seen the pace of price growth slow down in 2024, prices have continued to rise year-over-year, pushing more homes into the million-dollar range. Luxury home prices, in particular, have surged, with a 9% increase year-over-year, bringing the median price of these homes to a record $1.18 million as of Q2 2024.

“Home prices, insurance and mortgage rates have shot up so much that many people are either priced out of the market or weary of committing to such a high monthly payment,” said Julie Zubiate, a Redfin Premier agent in the Bay Area, where the majority of homes go for at least $1 million. “The people who are buying without hesitating are in tech and work at Google, Apple, Facebook or a similar company. Many Bay Area buyers–especially those without tech money–are getting more selective, jumping ship if a small problem comes up in, say, the inspection. They’re spending too much money to rationalize not getting everything on their must-have list.”

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