New York Among States with the Most Million Dollar Homes in America

New York landed atop a new study naming the states with the most cities with homes worth more than a million dollars.

According to new real estate data, America has 550 cities where the average home value is at or exceeds a million dollars. This surpasses the previous record set in 2022, where the nation reported a whopping 522 of these million-dollar cities.

In 2023, the nation recorded 491 cities where a typical home was worth more than a million dollars.

Economists say the stark increase in 2024 was triggered by climbing demand for homes and limited inventory, which is driving up prices to their highest point in history.

Home Values Skyrocketing in America

A recent report from Zillow found that, despite affordability challenges that are icing potential homebuyers out of the competitive housing market, home values are skyrocketing.

This comes as some analysts believe there will be a second wave of home buyer demand in the coming months. Apparently, the incentive of homebuyers to delay parting with their current property is projected to weaken in the coming weeks.

Economists believe mortgage rates will soon be on the decline, which will trigger those who had wanted to sell their home for awhile to bite the bullet and hope for lower mortgage rates in the near future.

The apparent boom of homes on the market will likely cause another home buying frenzy, which could drive up prices even more.

For those who live in New York, this means the competition to score a starter home has entered cutthroat territory.

New York Among Top 3 States with Most Million-Dollar Cities

Zillow identified the number of million-dollar cities per state and determined only one other place beat out New York.

That state, unsurprisingly, was California. By February 2024, the Golden State boasted 210 million-dollar cities, as compared to last year's number of 198.

This is by far and large the state with the highest number, as second place New York only has 66 of these wealthy cities. That as a jump from the 54 reported back in 2023.

Read More: Buffalo, NY, Among Best in Nation to Buy a Historic Home

Not only that, the New York City metro area, which encompasses parts of New Jersey and Pennsylvania, had the largest jump in million dollar cities after rising 24 spaces since 2023. The metro area's new total stands at 106.

Third place went to New Jersey, with 49 such cities. Florida and Massachusetts rounded out the top five, with 32 and 31 million-dollar cities, respectively.

Housing Market to be "Fierce" This Spring

Anushna Prakash, an economic research data scientist at Zillow, offered her predictions for the spring and summer 2024 house hunting season. To little surprise, she expects another sellers' market.

Prakash says more homes expected to hit the market means bidding could hit feverish heights and cause houses to sell well above their original price.

"Competition will stay fierce, especially for the most attractive and well-priced homes," she said, adding the frenzy will deepen should mortgage rates drop "as many expect."

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This means the nation may add even more million-dollar cities to its portfolio.

Currently, U.S. home values are 4.2 percent higher than this time last year. In these million-dollar cities, the number more closely resembles a rise of 4.6%.

If you're hankering to buy a home at a way more affordable price, check out these cities in New York that offer the cheapest home prices in the state.

Also, if you're hungry to buy property in an up-and-coming area in the state, these 10 cities are officially the fastest growing in the Empire State.

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