Just over 8% of U.S. homes are worth $1 million or more, near June 2022’s all-time high of 8.6%.
This analysis estimated current home values using the Redfin Estimate, public records and MLS data, and past home values using public records and MLS data. The figures in this report represent June 2023, unless otherwise noted. See the end of this report for a detailed methodology.
The share of homes worth seven figures is on the upswing after dipping to a 12-month low of 7.3% in February. That’s because home prices are rising on a year-over-year basis after falling at the beginning of the year. The median U.S. home-sale price rose 3% in July, the biggest increase since last November. Prices are rising faster for high-end homes, with the median sale price of U.S. luxury homes up 4.6% year over year to $1.2 million in the second quarter.
Today’s elevated mortgage rates are discouraging potential home sellers, with homeowners staying put to keep their relatively low mortgage rates. Inventory is so low that even though many buyers are sidelined by high rates, those who are in the market are competing for the few homes for sale. That’s driving home prices up and pushing many of those on the cusp above the million-dollar mark.
“The supply shortage is making many listings feel hot,” said Redfin Economics Research Lead Chen Zhao. “In most of the country, expensive properties that are in good condition and priced fairly are attracting buyers and in some cases bidding wars, mostly because for-sale signs are few and far between right now.”
“Still, there’s no rush to offload high-value homes,” Zhao continued. “Recent economic signals that the U.S. may avoid a broad recession could cause high-end buyers to feel more confident in making a major purchase in the coming months. There may be more demand coming down the pipeline.”
For homebuyers, the uptick in homes worth seven figures illustrates ongoing challenges with housing affordability in the U.S. And for buyers using loans, monthly payments on million-dollar homes are even more expensive than they were a year ago. A buyer purchasing a $1 million home would have a monthly mortgage payment of $6,604 with June’s average 6.7% mortgage rate, up from $5,984 with last June’s typical rate of around 5.5%.
The share of homes worth seven figures has doubled since before the pandemic; just over 4% of homes were valued at $1 million or more in June 2019. The share has shot up because home prices skyrocketed in 2020 and 2021 as record-low mortgage rates and remote work drove Americans to buy homes.
Parts of New England are gaining million-dollar homes fastest. Just over one-quarter (25.8%) of homes in the Bridgeport, CT metro–which is made up of many popular New York City suburbs–are worth at least $1 million, up from 23.1% a year ago, the biggest increase of the metros in this analysis. It’s followed by Boston, where the share increased from 20.3% to 21.5%, and Newark, NJ (8.7% to 9.7%).