Real estate website Zillow is predicting that within a year it will add 23 new metros, mostly in California, to its "$1 Million City List." That means two dozen cities with a median home value of $1 million or more will be added to the 197 that already exist.
Zillow reported that U.S. home values are expected to rise 6.6 percent over the next year, leading to home-value appreciation in the double digits in some areas, like California. The San Francisco metro alone could gain seven $1 million cities by next June. The metro already has 46 $1 million cities, which is more than any other metro area in the country.
The Los Angeles metro is expected to gain five new $1 million cities in the next year, while Seattle and San Jose will each add two, Zillow reported. Across the country, the New York metro is expected to gain three new million-dollar cities, while Boston should join the list.
"The number of million-dollar cities has doubled over the past five years. These markets tend to be affluent and exclusive suburbs with very strict building restrictions in communities adjacent to finance and tech hubs," said Aaron Terrazas, Zillow senior economist. "Although home value growth is expected to slow over the next year, particularly at the high end of the housing market, the number of cities where more than half of homes are valued in the seven digits is expected to jump to a new all-time high over the next 12 months."
But, according to Zillow, pricey cities aren't the only places experiencing rapid home-value growth.
“Over the past year,” the report stated, “U.S. home values rose over 8 percent, to $217,300.”
That escalation is so much so fast that the 66 percent of renters who say they often think about owning a home also cite saving for a down payment as one of the key impediments holding them back.
Still, the march towards million-dollar metros continues. Biltmore Forest, N.C., in the Asheville metro, is forecast to be the first $1 million city in North Carolina. Likewise, Anna Maria, Fla., in the Sarasota metro, is expected to become the first $1 million city there.
Properties in both cities are just shy of $1 million, median, as of August. Zillow expects these markets to grow steadily through next year to the $1 million mark.