LA Has More Homes Worth Over $1M Than Most Coastal Areas Cities: Report
In a new survey, LA ranked 3rd, followed by NY; Miami was 9th and Chicago 18th out of 50 US cities.
Perhaps it’s not a surprise in a city where residential prices can reach into the stratosphere, but in Los Angeles, more than 17 percent of all homes are valued at over $1 million.
What may be more shocking is that L.A. doesn’t have the highest share of million-dollar homes. According to a new survey by real estate data firm LendingTree, L.A. ranks third in the nation for the highest-share of million-dollar homes. The study tallied the top 50 U.S. cities with the most million dollar homes.
San Jose and San Francisco were No. 1 and No. 2, respectively. In San Jose, homes valued over $1 million made up 53 percent of the market. San Francisco’s million-dollar-share was at 40 percent.
Rounding out the top five were New York at 12 percent and San Diego at 11 percent. Miami ranked No. 9 at 4 percent. Chicago stood at 18th on the list, with about 1.3 percent.
Within the million-plus market, the median value of such homes in L.A. was $1.4 million. Overall in the city, the median value of a single-family home is $622,000, according to LendingTree.
California’s overwhelming presence on the rankings is due in large part to its severe housing shortage. A report conducted over 15 years by consulting firm ECONorthwest found California is short by 3.4 million units, accounting for more than half the 7.3-million-unit shortage nationwide.
Another study labeled L.A. as the most unaffordable city for renters and buyers, as measured by the ratio of the median home price to median household income. The report, published by UCLA Anderson School of Management, also found that six of the seven costliest U.S. cities for housing are in California.
On the other end of Lending Tree’s rankings was Buffalo, New York, at No. 50, where only one-tenth of all homes were valued at over $1 million. The median home value there is $141,000.
Source: The Real Deal