The American Dream of homeownership is becoming increasingly elusive, with a shocking 550 U.S. cities now boasting “typical” home values of $1 million or more.1 This represents a significant jump from just 491 cities a year ago, highlighting the rapid escalation of housing costs across the nation.
As the real estate market continues to evolve, let’s look at 10 cities where even a cool million barely gets you in the door.
1. San Francisco: Golden Gate to Golden Prices
In the City by the Bay, $1 million might get you a modest 1,150 square foot home. San Francisco’s notoriously expensive real estate market continues to challenge even well-heeled buyers, with its iconic Victorian houses and stunning bay views coming at a premium.
The tech industry’s stronghold in the area contributes to the sky-high prices, creating a competitive market where bidding wars are commonplace. Despite recent cooling trends, San Francisco remains one of the priciest real estate markets in the country.
2. New York City: Big Apple, Bigger Price Tags
New York City’s real estate market has long been known for its exorbitant prices, reflecting the city’s status as a global financial and cultural hub.
Even in outer boroughs like Brooklyn and Queens, where prices are relatively lower, $1 million often buys only a modest home. The city’s limited space and high demand continue to drive prices upward, making it a challenging market for many prospective homeowners.
3. Los Angeles: Hollywood Dreams, Nightmare Prices
In the City of Angels, $1 million translates to about 1,250 square feet of living space. Los Angeles’ sprawling metropolis offers a diverse range of neighborhoods, but even in less trendy areas, prices remain steep.
The allure of year-round sunshine, proximity to beaches, and the entertainment industry keeps demand high in LA. Despite occasional market fluctuations, the city’s real estate prices continue to pose a significant barrier for many would-be homeowners.
4. Honolulu: Paradise at a Premium
A million-dollar budget in Honolulu might get you a 1,000 square foot condo with a partial ocean view. The Hawaiian capital’s isolated location and limited land contribute to its high housing costs.
The city’s popularity as a tourist destination and retirement haven keeps demand strong, despite the high cost of living. For many residents, the trade-off of expensive housing for island living is worth it, but it comes at a significant financial cost.
5. San Jose: Silicon Valley’s Steep Prices
In the heart of Silicon Valley, $1 million buys approximately 1,500 square feet of living space. San Jose’s proximity to major tech companies and startups drives its real estate market to dizzying heights.
Even with recent tech industry layoffs, the area’s housing market remains robust. The promise of high-paying tech jobs continues to attract newcomers, keeping demand and prices high in this innovation hub.
6. Boston: Historical Charm, Modern Prices
Boston’s limited land and strict building regulations further drive up prices. Despite the high costs, the city’s cultural offerings and economic opportunities continue to attract residents willing to pay a premium for New England charm.
7. Miami: Sunshine State’s Shiny Price Tags
In Miami, $1 million could buy you a 1,500 square foot condo with water views. The city’s popularity among both domestic and international buyers keeps prices high, especially in sought-after beachfront areas.
Miami’s vibrant culture, warm climate, and status as a global city contribute to its expensive real estate market. While prices can vary widely across the metro area, prime locations command top dollar.
8. Seattle: Emerald City’s Expensive Enclaves
A million-dollar budget in Seattle might get you a 1,500 square foot home. The city’s tech industry boom, led by companies like Amazon and Microsoft, has significantly impacted housing prices.
Seattle’s natural beauty, with its mountains and waterways, adds to its appeal and cost. Despite occasional market corrections, the city’s real estate remains pricey, reflecting its status as a major tech hub.
9. Washington D.C.: Capital Costs
Washington D.C.’s status as the seat of government and its robust job market contribute to its high housing costs.
The city’s strict height limits on buildings and historical preservation efforts limit housing supply, further driving up prices. Despite the high costs, the city’s political importance and cultural offerings continue to attract residents.
10. San Diego: Sunshine Tax in Full Effect
San Diego’s growing tech and biotech industries have further boosted housing demand. While not as expensive as some California counterparts, the city’s real estate market remains challenging for many buyers.
In these cities, the reality of high housing costs is reshaping the American Dream. As the number of million-dollar cities continues to grow, it’s clear that for many, the path to homeownership is becoming increasingly steep.
Source:
1. Zillow
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Davin is a jack-of-all-trades but has professional training and experience in various home and garden subjects. He leans on other experts when needed and edits and fact-checks all articles.