Just 7 US cities offer luxury homes for less than $1M — a massive decline from 2020

New York Post

a day ago

A million bucks ain't what it used to be.
In today's pricey housing market, buyers may wonder how far $1 million or less may go towards the purchase of a luxury home. Spoiler alert: not very far. But it depends on where you look.
Just five years ago, buyers could land a top-tier home for less than seven figures in 30 major US cities. Today, that number has shriveled to just seven cities, as soaring prices across the country have turned what was once an exclusive threshold into a starting line.
A new report from Redfin underscores just how swiftly the luxury real estate landscape has shifted.
7 Luxury home prices in the US have surged 88% over the past decade, dramatically shrinking the number of cities where high-end homes cost less than $1 million.
Fotoluminate LLC – stock.adobe.com
7 According to a new Redfin report, only seven of the country's 50 largest metro areas now meet that criteria — down from 30 cities just five years ago.
Ted – stock.adobe.com
Back in 2020, more than half of the nation's 50 largest metropolitan areas boasted median prices for luxury homes — defined by Redfin as the top 5% of listings — for less than $1 million. Now, only a handful remain, with the vast majority located in the industrial Midwest.
Detroit currently tops the list of affordability, with Motor City's median luxury home priced at about $753,851 — though that's still up more than 80% over the past decade.
7 The study's findings.
Redfin
7 Pittsburgh remains one of the affordable markets.
Tupungato – stock.adobe.com
Cleveland follows closely, with Pittsburgh, Indianapolis, St. Louis and Cincinnati rounding out the list.
The only non-Midwestern — and notably non-Rust Belt — holdout is San Antonio, where the median luxury price is just below $1 million, at $957,854.
While prices in these cities have climbed — each saw luxury costs jump more than 50% since 2015 — they've done so at a slower pace compared to coastal markets, where price tags for high-end homes have gone into overdrive.
7 The lone non-Rust Belt outlier is San Antonio, Texas, where the median luxury home price remains under $1 million at $957,854.
Getty Images/iStockphoto
'The Rust Belt's relative affordability has preserved opportunities for luxury buyers that have all but disappeared in much of the country,' said Redfin senior economist Sheharyar Bokhari in the report.
'Buyers can get historic charm, large lots and upscale finishes — often in walkable, tree-lined neighborhoods — for a small fraction of what a similar home would cost in cities like San Francisco or New York.'
Nationally, the median price of a luxury home has soared 88% over the past decade, from $717,000 in 2015 to more than $1.3 million today. That jump has pushed most large metros out of reach for luxury buyers who once viewed $1 million as a benchmark for high-end real estate.
7 Detroit tops the affordability list with a median luxury price of about $753,851, despite an 80% price increase since 2015.
Leonid Andronov – stock.adobe.com
At the other end of the spectrum, the country's most expensive luxury markets remain familiar.
San Francisco leads with a median luxury price exceeding $6 million, followed by California's San Jose and Anaheim, both topping $5 million.
In Miami, where luxury prices more than doubled in 10 years, the median now sits at $4.38 million — just ahead of New York City's $4.22 million.
7 These cities, many in the Rust Belt, offer historic homes, large lots and upscale amenities at a fraction of the cost of homes in places like San Francisco or New York.
Henryk Sadura – stock.adobe.com
New York has seen the slowest luxury price growth among major metros, climbing just 33.1% over the decade.
Meanwhile, West Palm Beach notched the fastest growth, with high-end home prices tripling from $1.34 million to $4.31 million in the same span.
In sum, 17 of the 50 largest US metros saw the median price of luxury homes double in the last 10 years.