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The Independent
a day ago
- Business
- The Independent
Gen Zers are becoming home owners by buying in cheap small cities (and yes, sometimes having parental help)
In her final year of college, Taylor G. had a dream: She wanted to buy a home in her hometown of South Bend, Indiana, with her partner. Taylor and her now-husband both wanted to gain financial independence and become property owners after leaving past relationships that weren't so healthy financially, she told The Independent. In March 2024, months before graduation and at just 23, Taylor made that dream a reality. Today, Taylor is working in healthcare and living with her husband in a 2,400-square-foot house, placing her among the relatively small group of young homeowners in the U.S, but one that is rising as young people choose to buy in smaller and cheaper regional cities. Many in Generation Z — those born between the mid-1990s and the early 2010s — are worried that homeownership is near-impossible as the number of first-time homebuyers in the U.S. drops to a record low. It's clear why people feel this way: The average American needs to make a six-figure salary to afford a home, but the average yearly income for someone in their early-to-mid 20s is just over $38,000. Plus, if you're one of the 13 million Gen-Zers with student loan debt, the dream of homeownership can seem even less attainable. While it may seem bleak, Gen Zers are still outpacing Millennials and Gen X as first home buyers. The homeownership rates for 19-to-25-year-olds today are higher than the homeownership rates were for Millennials and Gen Xers when they were the same age, according to Redfin. The Independent spoke with Gen Z homeowners — and one Gen Z realtor — about how they bought their homes, even when the odds are stacked against them. Location, location, location Gen-Z homeowners tell The Independent that the low cost of living in their regions helped them secure a home. Lauren Parks, a 21-year-old realtor working in Houston, Texas, has assisted more than a dozen Gen Z clients, including two who now have the keys to their homes. The average home price is just over $269,000 in the area, according to Zillow. Parks says she tells her younger clients to look for homes in the suburbs of Houston — particularly in developing neighborhoods — to limit their costs. Parks says it's a 'long-term investment' and that many new homeowners should expect to see their home value grow as the suburb develops. Taylor says she doesn't think homeownership would've been 'realistic' if she didn't live in South Bend, where the average home costs $187,778, according to Zillow. Gen Z is split on where they like to live, the data shows. Younger Gen Zers who are 18- to 24-years old are flocking to live in large cities, economist Adam Kamins told USA Today. But older Gen Zers — along with Millenials and some Gen Xers — tend to buy homes outside of major metropolitan areas. Dakota Scott, a 28-year-old homeowner in Brandon, South Dakota, where the average home price is $394,841, told The Independent that location is what makes or breaks someone becoming a young homeowner. 'Location is definitely going to be the biggest thing to look for, as far as real estate taxes and how much that can affect the home buying process, it's good to be mindful of that,' she told The Independent. The process can be tricky, but it's not impossible The credit approval process for a mortgage can be complicated and stressful for any prospective homebuyer, but especially younger people. Parks, who makes videos on TikTok giving advice to young homeowners, says that Gen Zers shouldn't be afraid of the credit approval process. Even people who just graduated from college with little-to-no job history can get approved if they know the tricks involved (although should always be conscious of overcommitting to large debt). College transcripts and job offer letters are key tools for young people to get approved. Parks told The Independent one of her Gen Z clients submitted their college transcripts and a job offer letter with a $65,000 salary to a lender, and got approved for $180,000. Parks noted that she sees many homeowners, young and old, being denied loans because they didn't realize they were behind on their student loan payments, so encourages all prospective homeowners to check their student loan accounts to make sure they're up to date. For Scott, the approval process wasn't nearly as clear-cut. Scott and her now-husband applied for a loan in 2020, but were initially denied due to their credit score. Scott also accepted a commission-based role during the process, which meant she didn't have the two-year commission history many banks require. After they paid off some of their debts, Scott's husband was ultimately approved with a 2.7 percent interest rate. While their monthly payment has fluctuated over the years, they currently pay about $1,500 each month. Meanwhile, Taylor says her approval process was relatively smooth. The loan is only in her name, she said, because she has better credit than her husband. She was able to get approved for a mortgage on her $169,000 home with monthly payments just over $1,300 thanks to her good credit, which she attributes to the fact that her parents made her an authorized user on their credit cards when she turned 18. 'I really feel like the stars just kind of aligned for me,' Taylor said. 'I just know that personally, I'm the only one in my friend group who is even remotely close to it. Homeownership is still possible Taylor, Scott and Parks all say homeownership might be more attainable for some Gen Zers than they think. 'If they have a full-time job or a job that they're making good income at, and are at that point financially where they feel comfortable, I think people would be surprised that they might already qualify,' Taylor said. Plus there is always the Bank of Parents. Nearly 25 percent of Gen-Z homeowners bought homes with their parents, and many receive assistance from their families for down payments. But Parks says that homeownership is 'just as attainable' for Gen Zers who don't have that financial support, depending where they want to live. Scott is a prime example, telling The Independent she and her husband bought their home without any assistance from family. However, Scott said many of her homeowner friends did receive some type of help from their family. Buying a home as a young person may seem insurmountable, but people should approach it as a complicated but achievable goal. 'I absolutely think it's doable, if people set their minds to it, but there are a lot of systematic barriers that make it next to impossible,' Taylor said.
Yahoo
3 days ago
- Business
- Yahoo
2 Stocks to Invest in the Stock Market's Hidden $35 Trillion Opportunity
Key Points Homeowners in the United States are sitting on $35 trillion in home equity. Many people aren't tapping into their equity because of persistent high interest rates. This could be a massive opportunity for companies involved with home equity loans. 10 stocks we like better than Rocket Companies › The artificial intelligence boom is a multitrillion-dollar investment opportunity, without question. But it isn't the only one. A massive opportunity in the real estate sector could be hiding in plain sight. Shop Top Mortgage Rates Your Path to Homeownership A quicker path to financial freedom Personalized rates in minutes Consider this. After a surge in mortgage refinancing in the 2020-2021 timeframe, interest rates soared, and refinancing volume dried up. With the majority of U.S. homeowners having mortgage rates under 5%, it no longer made financial sense to refinance at 7% or higher in order to tap into home equity. The combination of extremely low mortgage refinancing and home equity loan volume and the fact that home values have risen sharply in the past five years has left homeowners with tons of "paper" wealth. In fact, U.S. homeowners are sitting on $35 trillion in home equity, an all-time high. And if mortgage rates start to thaw, it could lead to a surge in refinancing volume that goes well into the trillions of dollars. With that in mind, here are two top stocks that could be big winners of this $35 trillion market opportunity if interest rates finally start to come down. A mortgage giant that makes refinancing easy Rocket Companies (NYSE: RKT) is the No. 1 mortgage originator in the United States, and a surge in refinancing volume could be a huge catalyst. In the most recent quarter, Rocket closed on $26.1 of loan origination volume. In the same quarter in 2021, when rates were low, the volume was $103.5 billion, and refinancing was a major driver. Now, I'm not saying that we're going to see a 2021-style refinancing boom anytime soon, but if rates fall we could certainly see a spike in Rocket's total volume. However, even if we don't get a surge in refinancing, there's a lot to like about Rocket. The company is aggressively building an all-in-one real estate platform with the goal of bringing the entire home buying and selling process into the digital age. It recently closed on its acquisition of real estate technology company Redfin and has a pending acquisition of leading mortgage servicer Mr. Cooper (NASDAQ: COOP). Rocket already boasts a 97% client retention rate, and it is clearly good at what it does. An all-in-one real estate technology ecosystem that creates the most seamless experiences in the industry when it comes to selling, financing, buying, moving, servicing, and more could be huge. Plus, just because Rocket is a massive mortgage originator doesn't mean it can't grow further. The mortgage market is a highly fragmented one, with the top 10 players having less than one-fourth of the market combined. With $5 trillion to $6 trillion in homes selling in the United States in a typical year, if Rocket can grow its market share by even a few percentage points, it would be a big deal. That's especially true if interest rates fall and overall volume soars. A better way to approve HELOCs Upstart (NASDAQ: UPST) has a simple mission that solves a big problem. The company aims to do a better job of predicting whether a loan will be repaid, compared with the traditional FICO credit scoring model. It does this by looking at thousands of data points and their correlation with creditworthiness, and the data shows that the platform has been successful. So far, Upstart's business has mostly consisted of originating unsecured personal loans on behalf of bank partners. In the first quarter, about 95% of Upstart's origination volume was in this category. However, the company is aggressively building two new lending verticals -- auto loans and home loans (specifically home equity lines of credit, or HELOCs) -- and the early results are impressive. Auto loan volume and home loan volume increased by 42% and 52%, respectively, on a sequential basis in the first quarter. And both are massive market opportunities that could be helped if interest rates start to fall. However, the HELOC opportunity is simply massive. Upstart's annual run rate of HELOC borrowing capacity origination is currently about $160 million, which is a minuscule fraction of the multi-trillion-dollar opportunity. If Upstart can even get a percent or two of the HELOC market, and falling rates lead to surging demand, it could be a major win for shareholders. A $35 trillion opportunity hiding in plain sight To be sure, even if mortgage rates plunge, homeowners aren't going to tap into all of their available equity, or even close. But it's entirely possible that we'll see trillions of dollars of additional HELOC and refinancing volume once rates become a little more cooperative. There are many companies that could benefit from this, including banks, retailers, mortgage originators, and many others. In fact, an injection of several trillion dollars into the U.S. economy would be an event that fits into the "rising tide lifts all ships" category. Having said that, Rocket and Upstart are two well-run businesses that could be especially big winners if Americans start using their home equity once again. Should you invest $1,000 in Rocket Companies right now? Before you buy stock in Rocket Companies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rocket Companies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,308!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Matt Frankel has positions in Rocket Companies and Upstart and has the following options: short December 2025 $95 calls on Upstart. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy. 2 Stocks to Invest in the Stock Market's Hidden $35 Trillion Opportunity was originally published by The Motley Fool
Forbes
3 days ago
- Business
- Forbes
Luxury Real Estate Isn't Slowing Down, It's Scaling Up
It's the infinity pools that are defying gravity, as well as the real estate market. Things are getting hot in Florida, everywhere else except real estate that is. In fact, most of the state's housing markets are in serious trouble, flashing red alert signs across key indicators. Florida dominates the list of America's most distressed housing markets, facing a toxic cocktail of oversupply, climate risk, and rising insurance premiums that have made even enthusiastic buyers hesitant to commit. Redfin estimates that sellers now outnumber buyers by 500,000 across the U.S., and in no place is that imbalance more acute than Miami, where listings outpace interest by nearly 200%. By the traditional laws of economics, one would expect prices to plummet and construction to stall. Despite the bearish mood, median home prices in Miami have crept up by 5.6%. More puzzling still: some developers argue that the real estate market is doing better than ever, at least when it comes to the luxury end of the market. At the center of this all is Gil Dezer, who is capitalizing big on a new kind of high-end development: branded living spaces that fuse concierge-style services with aspirational design and, yes, car elevators. The fact that Dezer is making the market work while others are exiting it speaks to a series of deeper trends about the economy, the productivity gap in real estate as well as how brand-led growth is taking over the industry. Making Sense of the Current Housing Market Today's real estate market is buckling under pressure that is mounting from every side imaginable. Mortgage rates, while not historically extreme, are more than double what most homeowners grew used to during the long era of near-zero interest, a shift that's been psychologically jarring, not just financially burdensome. The excess inventory hasn't yet triggered the broad corrections one might expect, and behavioral economics offers part of the reason why. Houses aren't your typical asset class. Instead, they're identity assets. For most owners, taking a loss on a home carries emotional weight that far exceeds what standard models of loss aversion predict. Selling at a loss doesn't just dent the balance sheet, it dents the self. Unless pushed by absolute necessity, people would rather hold on than accept that loss. And then there's the double-bind that's unique to housing where each seller is usually also a buyer. That circularity means pricing expectations adjust in ways where many are willing to accept inflated prices because they know they'll be paying them too. Even with all these rationalizations in mind, the underlying fact remains. The U.S. housing market is broken, stuck in a prolonged slump it has yet to recover from, despite what the experts keep predicting. In Florida, the situation is even more volatile, not least because the local insurance crisis, exacerbated by the Surfside condo collapse and increasing climate risk, has led to eye-popping premiums. 'Real estate is hyperlocal,' says Michael Holt, at Compass. 'Miami's definitely softening, but if you go up to New York City, we've seen nine consecutive months of consecutive growth and pending sales are up 26 percent. The pendulum always swings, but it's swinging differently in different zip codes.' Some of that movement is being driven by forced sellers. 'There are people who bought at the peak and are now selling at real losses,' Holt says. 'It goes against every instinct most homeowners have, but in this market, some don't have a choice.' That's part of what makes Miami's luxury construction boom so striking. While many mid-market sellers are under pressure, ultra-high-net-worth buyers appear to operate on an entirely different playing field. 'Luxury buyers are rarely leveraged the same way,' Holt explains. 'They're not as sensitive to interest rates, and they're often buying in cash. Their motivations are more about lifestyle, long-term investment, even legacy, so the pricing psychology is just completely different.' As Holt puts it: 'What looks irrational to most of the market makes perfect sense at the very top. The comps matter less than confidence and cachet.' It is this psychology of real estate that also fuels Gil Dezer's cranes overshadowing Dumfoundling Bay. The Rise of Branded Luxury Living Gil Dezer is no stranger to high-end ambition. In fact, he's as close as one gets to having it run in his blood, given the family business. After joining his father's development business in 2000, he helped bring six Trump-branded buildings to life by 2010. Then came the Porsche Design Tower, where residents can drive their cars straight into their sky-high apartments. It was a wild idea many dismissed, until it sold out. 'We only need 200 buyers to see things our way,' Dezer explains. 'That's the reality. We're not selling to everyone, just to the right people.' The Bentley Residences, slated to be Miami's most premium tower, follows the same formula. Units start at $7.5 million and come with features like private pools, saunas, and, of course, car elevators. Half of them have already sold, with buyers putting down 50% deposits years before completion. 'These are real buyers. They love the product. And once they experience it, they stay,' Dezer says. The luxury market, as Dezer knows intimately, doesn't obey the same rules of economics as the rest of the housing sector. It's its own gravitational field, where scarcity, identity, and perception drive value just as much as fundamentals do. 'In this segment, higher prices can create more demand,' Dezer says. 'People want to know they're buying into something exclusive, something truly best-in-class. You don't sell a Bentley by offering a discount.' That's why every detail in the Bentley Residences is engineered for differentiation. 'Our buyers expect quality on every front, materials, privacy, technology, you name it. You can't cut corners when someone's spending eight figures. They notice.' But delivering that level of precision under current conditions isn't easy, even when the demand is there. The same supply side pressures are squeezing high-end construction as well. 'Nothing about this is easy,' Dezer admits. 'Just because you have buyers doesn't mean you can build without pain. Insurance has gotten absolutely insane. For the Armani building, we paid $8.5 million. For Bentley, it's $42 million. That's before you even pour concrete.' And unlike other luxury goods, where price tags can scale freely, real estate still comes with hard constraints. 'I can only sell for so much per square foot,' he says. 'There's a ceiling to what even the best buyer will pay, and meanwhile, our costs keep climbing. Plumbers used to cost $20 an hour. Now it's $40. Interest rates, materials, insurance, they all eat into your margin.' In other words, even up in the stratosphere, gravity still applies. And construction has been held back by it more than many other industries. Changing Construction Today: The Mystery of The Missing Productivity For decades, economists and policymakers have puzzled over one persistent anomaly: while technology has turbocharged productivity across manufacturing, finance, and logistics, construction has barely moved. A 2017 McKinsey report famously highlighted that global labor productivity in construction grew at just 1% annually over two decades compared to 3.6% in manufacturing and 2.8% across the global economy. In short, the way we build today needs to evolve. 'The solutions are complex,' says George Pfeffer, CEO of DPR Construction, a self-performing commercial contractor and technical builder known for its work on hospitals, data centers, pharmaceutical manufacturing facilities and more. Pfeffer cites a long-standing shortage of skilled labor and the customized nature of building as two factors contributing to that complexity. 'Commercial construction has some different factors at play compared with residential, but where both share common ground is in the idea that for true change to occur, we need to think long-term.' Pfeffer notes that trust, safety, and human capital still drive performance more than algorithms. 'You can't be a contractor without having hope,' he says. 'The work is complex, the workforce is stretched, and the expectations are high, but we keep climbing.' The generational talent gap is one area where DPR is driving change. 'We're working to change perceptions and reinforce the idea that construction is a meaningful, exciting career,' Pfeffer adds. 'We're building programs, mentorship pipelines, hands-on workshops. But it takes time.' To that end, the company has also focused on internships for high school students, career fairs, and classroom time with kids as young as third grade to inspire future generations about the opportunities available to them in construction. And while Pfeffer and others are working on solutions, supply chain challenges continue to add complexity, for both commercial and residential construction. Even developers like Dezer, with deep experience and strong demand, are finding it harder than ever to execute. The design might be modern and the clientele might be global, but the tools and workflows are often stuck in the past. The productivity gap is real, and bridging it will require long-term solutions, not short-term fixes. Building Through the Bottleneck: The Rise of Hyper-Personalization With cost structures ballooning and traditional productivity tools offering diminishing returns, one of the most consistent strategies forward has been to climb the value chain. If you can't build cheaper or faster, you build smarter, rarer, and more personal. This is how we arrive at the dual rise of hyper-personalization and what some are calling the 'luxurification' of the built environment as evidenced by Dezer and many others. 'Technology is just a tool. What really matters is how you use it to put people first,' says Scott LaMont, of EDSA, a leading landscape architecture and planning firm. 'The industry is built around cooperation and connection. The isolation of the pandemic didn't kill that, it clarified just how essential it is, and we're seeing the market react to this in many different ways both on the supply and demand side,' he continues. At EDSA, LaMont has embraced digital collaboration, generative design, and AI tools, but not in pursuit of raw efficiency alone. Instead, he sees these as enablers for more human-centered environments. 'We're flexible in ways we couldn't even imagine five years ago,' he says. 'What's exciting now is that we can scale individuality. We're building spaces that feel custom, not just at the penthouse level, but across entire communities.' That theme, personalization at scale, is echoed even further down the supply chain. 'We build a SKU every six minutes,' says Jeremy Barker, CEO of Murphy Door, the industry leader in hidden doors and space-optimization features. 'Everything is custom. Everything is pre-paid. We don't warehouse what we make, we respond to who our customer is.' Barker explains that his business has exploded after he joined a sales training program, and he credits the success to how he marries old-school craftsmanship with new-school responsiveness. 'We've got more full-stack engineers than we do traditional engineers,' he says. 'We don't sell closet doors anymore, we sell a part of our customer's identity.' Murphy Door's meteoric growth, 117% year over year and counting, suggests this pivot toward lifestyle-forward construction isn't a fluke either. 'People want more than shelter,' Barker says. 'They want to feel smart, seen, and in control of their space. That's the future.' Luxury, then, becomes less about opulence and more about intentionality. From Jeremy Barker's Murphy Doors to Gil Dezer's Bentley elevators, every detail becomes a design choice with meaning. And for builders facing the headwinds of low productivity and rising costs, hyper-personalization becomes a survival strategy which turns friction into value, and constraints into craft. For Dezer, that craft is embedded in the brands he works with. When buyers see the Bentley name, they aren't just buying a floorplan, they're buying into an identity. 'It's personal,' he says. 'These aren't just buildings where our customers happen to live. They reflect who they are, and in turn, who those behind the buildings are.' We're seeing this survival strategy in action in places like downtown Miami where the buyers are still buying. In suburban Florida, markets are sliding. But lumping all of housing into a single trend misses the nuance. As Michael Holt puts it: 'The client is the bellwether. If you know what they want, and deliver it with speed and clarity, you win.' And in Miami, what clients want is a brand, a view, and a car elevator that takes them all the way home.
Geek Wire
4 days ago
- Business
- Geek Wire
Zillow to Compass: We're not legally required to work with you
This story originally appeared on Real Estate News. Zillow says a lawsuit filed by Compass is focused on protecting Compass, not consumers, and that Zillow is not required to change its listing standards simply because they conflict with another company's strategy. 'Compass cannot turn antitrust law on its head and compel Zillow to do business on Compass's preferred terms,' the company argues in a July 17 court filing. The brief, filed in the Southern District of New York, opposes Compass' request for a preliminary injunction against Zillow's listing rules. The policy, unveiled in April and now in effect, blocks listings from appearing on Zillow or Trulia if they've been publicly marketed but not shared with Zillow or an MLS within one business day. Conversations, not conspiracy: Zillow's response presents declarations from top executives and outlines conversations with Redfin and eXp, two of the brokerages that support the policy — and which Compass cited as evidence of a possible conspiracy. But the filing characterizes those conversations as routine, last-minute heads-ups before launch, not collusion. Redfin CEO Glenn Kelman was notified of the Listing Access Standards in a call the day before they were publicly announced, according to a declaration from Zillow CEO Jeremy Wacksman: 'During the call, Mr. Kelman expressed support for Zillow's decision and indicated that Redfin would likely consider a similar policy.' Redfin's standards were announced four days later. 'At no point did Mr. Wacksman and Mr. Kelman ever discuss or enter into any agreement to boycott Compass.' In a separate declaration, Zillow Chief Industry Development Officer Errol Samuelson describes calling eXp leadership in advance of the rollout and later signing a two-part agreement: One part delivers listing feeds to Zillow, and the other commits eXp — but no one else — to following Zillow's listing rules. Compass listings continue to appear on eXp. Zillow included the contract with eXp in the court filing and emphasized that the deal 'has nothing to do with Compass.' What Zillow is saying: 'While Compass has been waging a campaign against market transparency to the detriment of consumers and agents, Zillow, by contrast, has a long history of providing transparency and equal access to real estate information, to the benefit of consumers and agents,' a Zillow spokesperson said. 'We will not waver in that commitment. Their motion gets both the facts and the law wrong, and we will continue to defend against it to ensure that the integrity of a fair and competitive real estate marketplace remains intact.' What Compass is saying: 'This case is about protecting homeowner choice. No single company should have the power to ban agents or listings because they don't follow that company's business model. That's not competition — it's coercion,' a Compass spokesperson said. 'Imagine if Amazon banned a seller for listing a product on their own website first. That's essentially what's happening here. Homeowners deserve the right to choose how they sell their homes.' How we got here: Compass filed suit against Zillow on June 23 in response to Zillow's policy barring listings that are publicly marketed but not widely available via the MLS. A few days later, Compass sought a preliminary injunction barring Zillow from enforcing its new policy. The suit argues that Compass' '3-Phased Marketing Strategy' poses 'a significant threat to Zillow's home search monopoly' by allowing consumers to sell their homes via private listing, free of 'negative insights' such as days on market. Pushing back on 'monopoly' claims: While Compass has cited Comscore data showing that Zillow receives at least 60% of U.S. home search traffic, Zillow argues that traffic is not the same as power — and certainly not proof of antitrust harm. Consumers use many sites, and Compass continues to grow, the filing notes. 'Just because a consumer visits our site does not mean they complete a transaction with us,' the company stated. Only one in four visitors connects with a real estate agent through the platform and Zillow directly participates in only a single-digit share of U.S. home sale transactions. How Zillow's listing standards work: As of May 28, agents who have listings that are deemed to be out of compliance with Zillow's Listings Access Standards will get a notification from the company. Starting June 30, 'an agent's third non-compliant listing — and any subsequent non-compliant listings — will be blocked from Zillow and Trulia for the life of the listing agreement between that listing broker and seller,' the company said. At least one agent has had a listing affected by the policy, according to CoStar CEO Andy Florance, who said on June 16 that had promoted its first listing barred by Zillow. A Zillow rep told Real Estate News that the company is not disclosing the number of listings affected by the new standards. The escalating private listings fight: Compass CEO Robert Reffkin's fight for private exclusives has multiple fronts, including in Seattle against leading local brokerage Windermere and NWMLS, which serves the region and was slapped with a lawsuit by Compass in April; in California against CRMLS, which has opted out of allowing a pre-marketing period; and more recently, in Chicago where the leaders of recently acquired @properties are echoing Reffkin's 'seller choice' message.
Yahoo
5 days ago
- Business
- Yahoo
5 US Metros Where Buyers Could Buy a Luxury Home for Less Than $1 Million
For years, the phrase 'million-dollar home' has evoked images of sprawling estates, high-end finishes and exclusive neighborhoods. But as home prices continue to climb across the U.S., $1 million doesn't stretch as far as it used to. This is especially true in major cities. According to a recent Redfin report, the median price for a luxury home nationwide has soared to almost $1.35 million, up about 70% from nearly $798,000 in 2020. However, if you're dreaming of luxury living on a sub-million-dollar budget, a few U.S. metros still offer opportunities. Read Next: Find Out: Here are five cities where luxury is still within reach, without crossing into seven-figure territory. Also see the most expensive place to buy a home in every Western state. Cleveland Median luxury home price: $757,046 Cleveland is quickly gaining recognition as a hidden gem in the luxury real estate market. With the city's median luxury price of just over $757,000, buyers can afford spacious homes with upscale features in desirable neighborhoods like Shaker Heights and Cleveland Heights. These areas are known for their historic charm and tree-lined streets. Since 2015, Cleveland's luxury prices have climbed 59%, but prices still pale in comparison to markets like San Francisco or Seattle, where the median prices top $6 million and $2.9 million, respectively. Check Out: Pittsburgh Median luxury home price: $846,715 Pittsburgh offers a unique blend of modern amenities, green spaces and a strong local economy all while keeping luxury home prices surprisingly low. With a median price around $847,000 for a luxury property, it's one of the last larger metros where buyers can still purchase a top-tier home without hitting the million-dollar mark. According to Redfin, the city has seen a 53.2% increase in luxury home prices since 2015, a slower pace compared with national trends, leaving plenty of room for potential growth. Indianapolis Median luxury home price: $914,276 Indianapolis might not be the first city that comes to mind when thinking of luxury, but it's quietly become a top destination for buyers seeking high-end homes without the hefty price tag. The metro's median luxury price of just over $914,000 makes it one of the most affordable places to live large. Neighborhoods like Meridian-Kessler and Geist Reservoir offer spacious homes, private lots and access to top-rated schools. With a 65.3% increase in luxury home prices since 2015, Indianapolis has seen steady appreciation, which is a sign of long-term value for homebuyers. Its low cost of living and growing economy also make it a strong contender for those relocating from higher-cost areas. St. Louis Median luxury home price: $914,453 Next up is St. Louis. With a median luxury home price just shy of $915,000, buyers here can find historical mansions, modern new builds and everything in between. Neighborhoods such as Ladue and Clayton offer stately homes with high-end finishes, all within commuting distance to downtown. Luxury home prices in St. Louis have climbed 51.9% over the last decade, but the city remains significantly more affordable than other large metros. For those looking to trade in sky-high prices for space and serenity, St. Louis may be a perfect fit. San Antonio Median luxury home price: $957,854 San Antonio stands out as the only Texas metro on Redfin's list with luxury homes priced just under $1 million. Known for its rich history, cultural attractions and warm weather, San Antonio is increasingly drawing in buyers from Austin, Dallas and beyond who are looking for more space and less competition. The city's luxury housing market has grown significantly, with prices rising nearly 68.7% since 2015. San Antonio's relative affordability, along with its vibrant downtown and strong job market, keeps it high on the list for both local buyers and out-of-state transplants. More From GOBankingRates 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) This article originally appeared on 5 US Metros Where Buyers Could Buy a Luxury Home for Less Than $1 Million Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
