Editor’s Note: This story originally appeared on Inspection Support Network.
One of the dominant economic stories since the start of the COVID-19 pandemic has been the fiercely competitive housing market. The median sale price of a home in the United States topped $400,000 for the first time in 2021 amid aggressive bids and bidding wars in markets across the country.
Today’s housing market challenges are the result of a powerful combination of supply and demand factors. The United States has underbuilt housing supply for years, with mortgage lender Freddie Mac estimating a shortage of 3.8 million housing units from 2020.
Before the pandemic began, the median selling price of a home in the United States was $329,000. In the third quarter of 2021, the median selling price peaked at $411,200. With more than half of homes now selling for over $400,000, fewer options are available for low-income or first-time buyers, and current homeowners looking to upgrade to larger or more beautiful have to pay a higher price to do so.
But even before the recent spike, the share of high-end home sales in the United States had grown over time.
To determine the metros with the highest percentage of luxury home sales, Inspection Support Network researchers analyzed the latest data from the Home Mortgage Disclosure Act. The researchers ranked metropolitan areas based on the percentage of mortgage home sales above $1 million. In the event of a tie, the metro with the highest median property value for homes over $1 million was ranked higher. Learn more about our methodology at the end.
Here are the cities with the highest percentage of luxury home sales.
15. Phoenix-Mesa-Chandler, AZ
- Percentage of luxury home sales ($1 million or more): 3.11%
- Median property value for homes $1M+: $1,345,000
- Median income for buyers of $1M or more: $350,000
- Median down payment for homes $1M+: $410,000
14. Portland-Vancouver-Hillsboro, OR-WA
- Percentage of luxury home sales ($1 million or more): 3.38%
- Median property value for homes $1M+: $1,255,000
- Median income for buyers of $1M or more: $315,000
- Median down payment for homes $1M+: $390,000
13. Nashville-Davidson–Murfreesboro–Franklin, TN
- Percentage of luxury home sales ($1 million or more): 3.92%
- Median property value for homes $1M+: $1,335,000
- Median income for buyers of $1M or more: $336,000
- Median down payment for homes $1M+: $420,000
12. Austin-Round Rock-Georgetown, TX
- Percentage of luxury home sales ($1 million or more): 4.30%
- Median property value for homes $1M+: $1,375,000
- Median income for buyers of $1M or more: $377,000
- Median down payment for homes $1M+: $410,000
11. Sacramento-Roseville-Folsom, CA
- Percentage of luxury home sales ($1 million or more): 4.31%
- Median property value for homes $1M+: $1,255,000
- Median income for buyers of $1M or more: $346,000
- Median down payment for homes $1M+: $400,000
10. Denver-Aurora-Lakewood, CO
- Percentage of luxury home sales ($1 million or more): 4.98%
- Median property value for homes $1M+: $1,285,000
- Median income for buyers of $1M or more: $300,000
- Median down payment for homes $1M+: $420,000
9. Miami-Fort Lauderdale-Pompano Beach, Florida
- Percentage of luxury home sales ($1 million or more): 6.13%
- Median property value for homes $1M+: $1,455,000
- Median income for buyers of $1M or more: $451,000
- Median down payment for homes $1M+: $490,000
8. Washington-Arlington-Alexandria, DC-VA-MD-WV
- Percentage of luxury home sales ($1 million or more): 9.01%
- Median property value for homes $1M+: $1,305,000
- Median income for buyers of $1M or more: $311,000
- Median down payment for homes $1M+: $360,000
7. Boston-Cambridge-Newton, MA-NH
- Percentage of luxury home sales ($1 million or more): 12.11%
- Median property value for homes $1M+: $1,355,000
- Median income for buyers of $1M or more: $320,000
- Median down payment for homes $1M+: $400,000
6. New York-Newark-Jersey City, NY-NJ-PA
- Percentage of luxury home sales ($1 million or more): 12.28%
- Median property value for homes $1M+: $1,435,000
- Median income for buyers of $1M or more: $378,000
- Median down payment for homes $1M+: $420,000
5. Seattle-Tacoma-Bellevue, WA
- Percentage of luxury home sales ($1 million or more): 14.70%
- Median property value for homes $1M+: $1,305,000
- Median income for buyers of $1M or more: $272,000
- Median down payment for homes $1M+: $390,000
4. San Diego-Chula Vista-Carlsbad, CA
- Percentage of luxury home sales ($1 million or more): 19.40%
- Median property value for homes $1M+: $1,375,000
- Median income for buyers of $1M or more: $290,500
- Median down payment for homes $1M+: $430,000
3. Los Angeles-Long Beach-Anaheim, CA
- Percentage of luxury home sales ($1 million or more): 27.51%
- Median property value for homes $1M+: $1,405,000
- Median income for buyers of $1M or more: $300,000
- Median down payment for homes $1M+: $430,000
2. San Francisco-Oakland-Berkeley, CA
- Percentage of luxury home sales ($1 million or more): 49.36%
- Median property value for homes $1M+: $1,425,000
- Median income for buyers of $1M or more: $290,000
- Median down payment for homes $1M+: $400,000
1. San Jose-Sunnyvale-Santa Clara, CA
- Percentage of luxury home sales ($1 million or more): 61.12%
- Median property value for homes $1M+: $1,455,000
- Median income for buyers of $1M or more: $289,000
- Median down payment for homes $1M or more: $400,000
Methodology
To determine the metros with the highest percentage of luxury home sales, Inspection Support Network researchers analyzed the latest data from the Federal Financial Institutions Examination Council’s Home Mortgage Disclosure Act.
Only conventional loans for the purchase of a home issued in 2020 were taken into account in the analysis. The researchers ranked metropolitan areas based on the percentage of mortgage home sales above $1 million.
In the event of a tie, the metro with the highest median property value for homes valued over $1 million was ranked higher. To improve relevance, only metropolitan areas with at least 100,000 inhabitants were included.
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