SEATTLE, Aug. 17, 2017 /PRNewswire/ -- Nearly one in
20 residential ZIP codes meets Zillow's definition of a
$1 Million Neighborhood, meaning at
least 10 percent of the homes there are worth seven figures,
according to a new Zillow® analysis. There are 346 new $1 Million Neighborhoodsi in the U.S.
since 2014, as the housing market continues its push toward fully
recovering.
Zillow analyzed residential ZIP codes across the country,
looking for places where at least 10 percent of homes in the area
are worth $1 million or more, making
it a $1 Million Neighborhood. About 4
percent of all ZIP codes analyzed had enough $1 million homes to qualify. There are now a
total of 1,280 $1 Million
Neighborhoods in the U.S., up from 958 in 2014.
U.S. home values are at a record high as the housing market
continues its recovery from the Great Recession. As a result, an
increasing number of ZIP codes are finding themselves on the
$1 Million Neighborhood list. West
Coast metropolitan areas, where home values have bounced back
fastest, saw the greatest increase in the number of $1 Million Neighborhoods over the past three
years.
Nearly 74 percent of all ZIP codes in the San Francisco metropolitan area meet the
$1 Million Neighborhood benchmark.
One in five San Francisco ZIP codes have been added to the
$1 Million Neighborhoods list since
2007. The San Francisco
metropolitan area has gained 36 $1
Million Neighborhoods over the past three years, second to
New York, which gained 53.
"As home values reach new peaks, $1
million homes are increasingly common, even in neighborhoods
once considered middle class," said Zillow's Chief Economist Dr.
Svenja Gudell. "The U.S. median home
value is just over $200,000, but in
San Francisco, Los Angeles and other expensive cities, homes
are worth much more. As home values hit seven figures in many
neighborhoods, it's going to have real impacts on affordability for
middle-class homeowners whose incomes haven't kept up, and this
imbalance especially has implications for people on fixed incomes
whose property taxes are rising along with their home value."
Not all markets are seeing an increase in the share of
$1 Million Neighborhoods. In
St. Louis and Cincinnati, where the median home value is
nearly $50,000 below the national
median, no new $1 Million
Neighborhoods were added over the past 10 years.
Las Vegas, among the hardest
hit by the Great Recession, has only gained one $1 Million Neighborhood since 2014.
Metropolitan
Area
|
Total $1
Million
Neighborhoods
|
Number of New
$1
Million
Neighborhoods
Since 2014
|
Number of New
$1 Million
Neighborhoods
Over the Past
Year
|
Zillow Home
Value Indexii
(ZHVI)
|
United
States
|
1,280
|
346
|
128
|
$200,400
|
New York/ Northern
New Jersey
|
254
|
53
|
20
|
$422,300
|
Los Angeles-Long
Beach-Anaheim, CA
|
146
|
29
|
13
|
$609,800
|
Chicago,
IL
|
17
|
2
|
1
|
$211,200
|
Dallas-Fort Worth,
TX
|
10
|
4
|
2
|
$211,000
|
Philadelphia,
PA
|
17
|
4
|
1
|
$218,700
|
Houston,
TX
|
6
|
0
|
0
|
$178,400
|
Washington,
DC
|
42
|
8
|
3
|
$382,600
|
Miami-Fort
Lauderdale, FL
|
36
|
13
|
3
|
$253,100
|
Atlanta,
GA
|
7
|
4
|
1
|
$179,900
|
Boston, MA
|
73
|
18
|
7
|
$427,700
|
San Francisco,
CA
|
125
|
36
|
6
|
$854,300
|
Detroit,
MI
|
4
|
2
|
0
|
$141,000
|
Riverside,
CA
|
5
|
1
|
0
|
$328,800
|
Phoenix,
AZ
|
8
|
0
|
0
|
$236,900
|
Seattle,
WA
|
38
|
22
|
9
|
$447,100
|
Minneapolis-St Paul,
MN
|
6
|
1
|
1
|
$247,400
|
San Diego,
CA
|
25
|
8
|
4
|
$548,000
|
St. Louis,
MO
|
4
|
0
|
0
|
$148,600
|
Tampa, FL
|
6
|
4
|
2
|
$185,700
|
Baltimore,
MD
|
9
|
3
|
1
|
$261,000
|
Denver, CO
|
13
|
7
|
2
|
$370,000
|
Pittsburgh,
PA
|
0
|
0
|
0
|
$137,400
|
Portland,
OR
|
11
|
6
|
2
|
$367,400
|
Charlotte,
NC
|
2
|
0
|
0
|
$174,800
|
Sacramento,
CA
|
9
|
6
|
1
|
$369,200
|
San Antonio,
TX
|
2
|
1
|
1
|
$162,700
|
Orlando,
FL
|
2
|
0
|
0
|
$207,000
|
Cincinnati,
OH
|
1
|
0
|
0
|
$152,600
|
Cleveland,
OH
|
1
|
0
|
0
|
$134,600
|
Las Vegas,
NV
|
2
|
1
|
0
|
$225,500
|
Columbus,
OH
|
0
|
0
|
0
|
$162,500
|
Indianapolis,
IN
|
0
|
0
|
0
|
$138,100
|
San Jose,
CA
|
46
|
13
|
3
|
$1,013,700
|
Austin, TX
|
7
|
2
|
1
|
$271,500
|
Zillow
Zillow is the leading real estate and rental
marketplace dedicated to empowering consumers with data,
inspiration and knowledge around the place they call home, and
connecting them with the best local professionals who can help. In
addition, Zillow operates an industry-leading economics and
analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of
economists and data analysts produce extensive housing data and
research covering more than 450 markets at Zillow Real Estate
Research. Zillow also sponsors the quarterly Zillow Home Price
Expectations Survey, which asks more than 100 leading economists,
real estate experts and investment and market strategists to
predict the path of the Zillow Home Value Index over the next five
years. Launched in 2006, Zillow is owned and operated by Zillow
Group, Inc. (NASDAQ:Z and ZG), and headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
i A $1 Million
Neighborhood code is defined as a ZIP code where at least 10
percent of homes in that ZIP are worth $1
million or more.
ii The Zillow Home Value Index (ZHVI) is the median
estimated home value for a given geographic area on a given day and
includes the value of all single-family residences, condominiums
and cooperatives, regardless of whether they sold within a given
period. It is expressed in dollars, and seasonally adjusted.
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SOURCE Zillow