These 7 California cities have more million-dollar homes than most of the US, study says

California has the highest percentage of million-dollar homes in the U.S., a new report found, with seven cities in the state making a list of the top 15 cities.

San Francisco topped the list with 81% of homes worth at least $1 million as of June, according to Visual Capitalist, a data storytelling publication.

Visual Capitalist used data from Redfin, a real estate brokerage service, and Multiple Listing Service, a real estate advertising and listing service company, to determine the percentage of million-dollar homes in U.S. cities based on June home values in metropolitan statistical areas.

Redfin found 8.2% of houses in the country were million-dollar homes as of June 2023. That’s near the June 2022 peak of 8.6%.

The top six spots went to California for the highest share of million-dollar homes. San Francisco’s 81% dropped from 2022 when 84.2% of homes cost more than $1 million.

San Jose took second at 80%.

Here’s the full list of the top 15:

1. San Francisco, California - 81%

2. San Jose, California - 80%

3. Anaheim, California - 55%

4. Oakland, California - 49%

5. San Diego, California - 40%

6. Los Angeles, California - 38%

7. Honolulu, Hawaii - 38%

8. Oxnard, California - 35%

9. Salt Lake City, Utah - 33%

10. Seattle, Washington - 33%

11. New York, New York - 29%

12. Bridgeport, Connecticut - 26%

13. Boston, Massachusetts - 22%

14. Nassau County, New York - 16%

15. Miami, Florida - 14%

Home prices rise

Redfin reported the share of homes worth more than $1 million has doubled since 2019.

One reason is the intense competition for people trying to get into the housing market with many homeowners staying put to hold onto their lower mortgage rates. Plus, development slowed down because of the high cost of financing, Visual Capitalist reported.

Interest rates hit a 23-year high in October, according to Freddie Mac, the Federal Home Loan Mortgage Corporation created by Congress in 1970 as a private company that now operates under a congressional charter as shareholder-owned. The weekly average interest rate for a 30-year fixed rate mortgage was 6.95% as of Dec. 14. For a 15-year fixed rate mortgage, it was 6.38%. That was the first time rates dropped below 7% since August.

“Given inflation continues to decelerate and the Federal Reserve Board’s current expectations that they will lower the federal funds target rate next year, there will likely be a gradual thawing of the housing market in the new year,” Freddie Mac said in the report.

Redfin reported on Dec. 15 that home prices have had the biggest year-over-year increase since late 2022.

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