According to a Zillow analysis, The US has lost 58 “million dollar” cities (cities where the typical home is worth $1 million or more) since the housing market peaked last July.
According to the report, this type of houses has lost an average of $114,500 in value over the past six months.
Last year a record was set for the most “million dollar” new cities. But then demand and supply ground to a halt in the second half of 2022 after mortgage rates skyrocketed.
So buyers turned to lower-priced homes., a change from the beginning of the pandemic. With fewer buyers able to use the support of historically low interest rates to help purchase high-priced homes, high-priced markets felt the biggest hit from the slowdown.
According to Zillow’s Home Value Index, the typical US home is worth 4.1% less than last July, while in today’s million-dollar cities, the home has lost 6.3% of its value during that time, on average.
The report notes that 32 states are home to at least one million-dollar city.. And it specifies that there were 33 states with one of those cities last summer, but Montana’s only “million dollar” city has since fallen off that list.
It is noted that Gallatin Gateway, a small community in the Bozeman area, has seen its typical home value drop to $987,824, a reduction of about $117,000 since it peaked in June.
Zillow reports that of the current 464 million dollar cities387 are in a state on either coast of the US California alone has 190 million-dollar cities.
California has lost 20 “million dollar” cities since July, easily more than any other state. They are followed by Texas and New Jersey, which have lost 5 “million dollar” cities each. Florida has lost four, and Utah and Hawaii have each lost three.
For more details on the report, click here.
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