The report found that 8.5% of U.S. homes are worth more than $1 million. To the new report From real estate company Redfin.
The share of homes worth more than $1 million is up from 7.6% a year ago and more than double the 4% seen before the pandemic.
Redfin attributes the record increase to record home price gains.
The firm noted that mortgage rates have been “more than double their pandemic-era lows since the beginning of 2022” and that a housing supply shortage is also pushing up prices.
Housing inventory is down 30% from pre-pandemic levels as many homeowners hang on to the low-rate mortgages they signed after the Federal Reserve slashed interest rates to near zero during the pandemic. New homes in Texas have boosted supply, helping to cap price growth in Austin and across Texas.
“Home prices, insurance and mortgage rates have skyrocketed, leaving many people feeling overwhelmed by the high cost of home buying or tired of high monthly payments,” said Julie Zubiate, a Redfin Premier real estate agent in the Bay Area, where home prices are the highest in the country, with a median sales price of $1.5 million.
Among the 50 most populous metropolitan areas, all but three saw their share of such expensive homes rise from a year ago. California, which already had the largest share, saw its share of multimillion-dollar homes grow faster than any other region, according to Redfin’s research.
In Austin, Texas, where 10% of homes are worth more than $1 million, prices fell, compared with 2% in Indianapolis and 3.6% in Houston. New homes in Texas increased supply, helping to cap price growth in Austin and Houston.
Vice President Harris has made rising home prices a major focus, and they could become a major issue in the next election.
Harris has proposed measures to spur housing construction and make housing more affordable for Americans, including a plan to build 3 million new homes, tax incentives for building affordable housing, and up to $25,000 in down payment assistance for first-time homebuyers.
Trump has yet to release a detailed housing plan. Asked by voters earlier this month how he would lower home and rent prices, he said: Reduce energy costs.
