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Million-Dollar Metros: California Cities Top List

According to new research from LendingTree [1], home prices have risen significantly over the past two years, and paying $1 million or more for a house seems excessive as well as unattainable to most Americans. However, just because million-dollar homes aren’t common throughout the U.S. doesn’t mean they aren’t prevalent in some areas.

To see where million-dollar houses are most common, LendingTree analyzed data from the U.S. Census Bureau’s 2020 American Community Survey to look at the share of million-dollar homes in each of the nation’s 50 largest metropolitan areas. While million-dollar homes aren’t prevalent in most of the nation’s largest metros, they do make up a large share of homes in some notoriously high-cost areas like San Jose and San Francisco, California.

Key findings

Metros with the highest share of million-dollar homes

1. San Jose, Calif.

2. San Francisco

3. Los Angeles

Metros with the lowest share of million-dollar homes

1. Buffalo, New York

2. Cleveland

3. Pittsburgh

Since the start of the year, mortgage rates have risen drastically. These higher rates have made buying homes more expensive, even in areas where home prices haven’t necessarily increased.

With that said, because different lenders can offer different rates to the same person, it’s often possible for borrowers to find a lower rate on their mortgage by shopping around for a lender before buying.

A recent LendingTree study [2] found that the spread between the highest and lowest APRs offered to borrowers across the nation’s 50 largest metros who received offers from three or more lenders was 82 basis points. To put that spread into perspective, the study found that those borrowers could have saved an average of more than $63,000 over the lifetime of their mortgages by choosing the lowest rate offered to them.

Though these savings aren’t exclusive to those looking to buy million-dollar homes, higher-cost borrowers are likely to see larger savings the lower the rate they get. As a result, if you’re planning on buying in a high-cost area, one of the best ways you can save money is by shopping for a mortgage before buying.

To read the full analysis, including more charts and methodology, click here [1].