The Share of Million-Dollar Homes in America Just Hit an All-Time High

WAKEY WAKEY FUCKERS....things have happened on your watch as you have slumbered.

Grab a cup of coffee...I recommend you make it strong.

I have some bad news.
 
Hawkeye10 said:
WAKEY WAKEY FUCKERS....things have happened on your watch as you have slumbered.

Grab a cup of coffee...I recommend you make it strong.

I have some bad news.
Click to expand...
You're seriously like a broken record. It's basically the same post every time no matter the subject. How about we pretend it's 40 years ago and you share with us the housing policies local and state governments should have pursued at the time that you feel would have lowered appreciation and made housing more affordable today.
 
cawacko said:
You're seriously like a broken record. It's basically the same post every time no matter the subject. How about we pretend it's 40 years ago and you share with us the housing policies local and state governments should have pursued at the time that you feel would have lowered appreciation and made housing more affordable today.
Click to expand...
I can trace our housing problem back to the 1971 Powell Memo to advance the corporate cause which led to institutional investors.
 
cawacko said:
I remember as a kid seeing these big stately homes that sold for $1m and dreaming one day to have one. Now it's like $1m will get you maybe a 2/1.5 with 1,300 sq.ft. and you'd be lucky to have any yard. Times they have a changed.




The Share of Million-Dollar Homes in America Just Hit an All-Time High​

Nearly 1 in 10 properties have an estimated value of $1 million or more, an ‘entry point’ for some markets​


It was once a price threshold associated only with luxury properties, conjuring images of pools, tennis courts and other high-end amenities. Now, 8.5% of U.S. homes have an estimated value of $1 million or more, a record high, according to a new analysis by brokerage Redfin provided exclusively to The Wall Street Journal.

That is up from 7.6% a year ago and more than double the 4% recorded before the pandemic.

The rise in $1 million properties is the result of historically high home prices across the country; the median home sale price rose 4% year-over-year to a record $442,525 in June, Redfin’s data show. The median sale price for U.S. luxury homes, defined as the top 5% of listings, rose 9% year-over-year to a record $1.18 million during the second quarter, according to the company.


“Years ago, if you owned a $1 million home, you would have been considered pretty rich,” said Redfin economist Chen Zhao. “Now, that’s the entry point for some markets.”


Anaheim has seen a spike in homes valued at $1 million or more, with 58.8% of homes reaching seven figures.Photos: 855RealPix
While rising mortgage rates have pushed down demand for homes, a shortage of inventory is keeping prices at historic highs, said Zhao, noting that the housing market is in a “pretty unusual spot right now.” That is good news for homeowners, but makes the market even more challenging for buyers already facing an affordability crisis, she said.

The San Francisco Bay Area has the country’s highest shares of $1 million-plus homes. Photo: David Paul Morris/Bloomberg News
The San Francisco Bay Area has a higher share of $1 million-plus homes than anywhere else in the U.S. In San Francisco, 80.6% of homes were valued at or above $1 million in June, according to Redfin’s data, up from 76.4% in June 2023.

California, already home to the biggest share of $1 million-and-up homes, continues to add them faster than any other state. For instance, Anaheim, Calif., saw one of the biggest increases in $1 million-plus housing stock, with 58.8% of homes estimated to be worth at least $1 million in June, up from 51% in June 2023.


A two-bedroom condo in San Francisco's Mission District is listing for $1.05 million. The condo is located in a former carriage house dating to the 1800s.Photos: Redfin
Bay Area real-estate agent Rose Hayes, who is listing a $1.05 million two-bedroom condo in an 1800s-era carriage house in the Mission District of San Francisco, said she now assumes that any buyer in the area with a $1 million budget is looking for a condo, since they likely couldn’t afford a single-family home. Anything in the area priced under $1 million is likely to get a lot of attention, and such listings often come with complications, such as existing tenancy agreements that buyers would need to take on, she said.

“It’s so hard to find anything for under $1 million out there,” she said.


Only one of the U.S. metro areas surveyed by Redfin saw a decline in the share of $1 million homes. In Austin, Texas, 10% of homes are now worth $1 million or more, down incrementally from 10.1% last year. Redfin attributed that drop to new construction in Texas that has pushed up supply.

There are now only a handful of major metro areas with virtually no homes estimated to be worth $1 million or more. In Detroit, Cleveland, Pittsburgh and Kansas City, Mo., fewer than 1% of homes were worth seven figures in June, Redfin’s numbers show.

In Detroit, fewer than 1% of homes are valued at $1 million or more. Photo: Jim West/ZUMA Press
While inventory is finally inching up across the country, it is still about 30% below prepandemic levels, according to Redfin. That is because sellers are locked into low interest rates, while construction costs remain significantly higher than before Covid, putting a damper on new construction.


Click to expand...
I bought my home 14 years ago for $300,000. It’s worth aprox 1.7. I am very happy with it.
 
goat said:
I can trace our housing problem back to the 1971 Powell Memo to advance the corporate cause which led to institutional investors.
Click to expand...
I dont know about that but clearly BlackRock and their ilk are currently buying a shit ton of houses, as the farmland is being bought by largely the same people.....

"You will own nothing and you will be happy"
WEF/CCP
 
Hawkeye10 said:
I dont know about that but clearly BlackRock and their ilk are currently buying a shit ton of houses, as the farmland is being bought by largely the same people.....

"You will own nothing and you will be happy"
WEF/CCP
Click to expand...
What can be unburdened by what has been?
 
I guess the really alarming thing is that there is no transparently why America is being bought by the wealthy and their hedge funds....

If it was for a good cause they would tell us why right?
 
Jarod said:
About 100,000
Click to expand...
There seems to be more here as that is quite the amount of appreciation.

14 years ago was during the GFC when large number of homes were in foreclosure or available via short sale, so discounts could be had. And Florida has had tremendous growth and appreciation in real estate.

Even with that, and a relatively small amount of CapEx, that seems hard to believe on the surface.
 
just bought a three unit in Florida.....the seller thought it was worth a million........after it was on the market for seven months I was able to pick it up for under $700k......
 
cawacko said:
I remember as a kid seeing these big stately homes that sold for $1m and dreaming one day to have one. Now it's like $1m will get you maybe a 2/1.5 with 1,300 sq.ft. and you'd be lucky to have any yard. Times they have a changed.




The Share of Million-Dollar Homes in America Just Hit an All-Time High​

Nearly 1 in 10 properties have an estimated value of $1 million or more, an ‘entry point’ for some markets​


It was once a price threshold associated only with luxury properties, conjuring images of pools, tennis courts and other high-end amenities. Now, 8.5% of U.S. homes have an estimated value of $1 million or more, a record high, according to a new analysis by brokerage Redfin provided exclusively to The Wall Street Journal.

That is up from 7.6% a year ago and more than double the 4% recorded before the pandemic.

The rise in $1 million properties is the result of historically high home prices across the country; the median home sale price rose 4% year-over-year to a record $442,525 in June, Redfin’s data show. The median sale price for U.S. luxury homes, defined as the top 5% of listings, rose 9% year-over-year to a record $1.18 million during the second quarter, according to the company.


“Years ago, if you owned a $1 million home, you would have been considered pretty rich,” said Redfin economist Chen Zhao. “Now, that’s the entry point for some markets.”


Anaheim has seen a spike in homes valued at $1 million or more, with 58.8% of homes reaching seven figures.Photos: 855RealPix
While rising mortgage rates have pushed down demand for homes, a shortage of inventory is keeping prices at historic highs, said Zhao, noting that the housing market is in a “pretty unusual spot right now.” That is good news for homeowners, but makes the market even more challenging for buyers already facing an affordability crisis, she said.

The San Francisco Bay Area has the country’s highest shares of $1 million-plus homes. Photo: David Paul Morris/Bloomberg News
The San Francisco Bay Area has a higher share of $1 million-plus homes than anywhere else in the U.S. In San Francisco, 80.6% of homes were valued at or above $1 million in June, according to Redfin’s data, up from 76.4% in June 2023.

California, already home to the biggest share of $1 million-and-up homes, continues to add them faster than any other state. For instance, Anaheim, Calif., saw one of the biggest increases in $1 million-plus housing stock, with 58.8% of homes estimated to be worth at least $1 million in June, up from 51% in June 2023.


A two-bedroom condo in San Francisco's Mission District is listing for $1.05 million. The condo is located in a former carriage house dating to the 1800s.Photos: Redfin
Bay Area real-estate agent Rose Hayes, who is listing a $1.05 million two-bedroom condo in an 1800s-era carriage house in the Mission District of San Francisco, said she now assumes that any buyer in the area with a $1 million budget is looking for a condo, since they likely couldn’t afford a single-family home. Anything in the area priced under $1 million is likely to get a lot of attention, and such listings often come with complications, such as existing tenancy agreements that buyers would need to take on, she said.

“It’s so hard to find anything for under $1 million out there,” she said.


Only one of the U.S. metro areas surveyed by Redfin saw a decline in the share of $1 million homes. In Austin, Texas, 10% of homes are now worth $1 million or more, down incrementally from 10.1% last year. Redfin attributed that drop to new construction in Texas that has pushed up supply.

There are now only a handful of major metro areas with virtually no homes estimated to be worth $1 million or more. In Detroit, Cleveland, Pittsburgh and Kansas City, Mo., fewer than 1% of homes were worth seven figures in June, Redfin’s numbers show.

In Detroit, fewer than 1% of homes are valued at $1 million or more. Photo: Jim West/ZUMA Press
While inventory is finally inching up across the country, it is still about 30% below prepandemic levels, according to Redfin. That is because sellers are locked into low interest rates, while construction costs remain significantly higher than before Covid, putting a damper on new construction.


Click to expand...
 
I'm a big government regulation guy,
and I definitely believe government should have the authority to regulate parties
investing in property in which they have no intention of actually residing.

The laissez faire free enterprise people will squawk at that,
but, to use as few words as necessary,
Fuck them.

And Kamala Harris, bless her precious, pure soul, agrees with me.

The reality is, though,
that looking only at people who wish to live in the property that they own or buy,
if they live in high demand places like my own Boston,
property values are going to be high above what the same property would be
in some Podunk Middle American or Southern town.

They give you more bang for the buck, for sure,
but then, God forbid,
you actually have to live there. <Shudder.>

I've already got my own home, which is hardly a castle,
in the ownership of my kids through a family trust to avoid probate hassles,
and that alone makes their net worth significantly higher than it would otherwise be.

It isn't a great situation right now, but it is what it is.
If we want more affordable housing,
government, and not the free market, will be the catalyst for it.
 
NiftyNiblick said:
I'm a big government regulation guy,
and I definitely believe government should have the authority to regulate parties
investing in property in which they have no intention of actually residing.

The laissez faire free enterprise people will squawk at that,
but, to use as few words as necessary,
Fuck them.

And Kamala Harris, bless her precious, pure soul, agrees with me.

The reality is, though,
that looking only at people who wish to live in the property that they own or buy,
if they live in high demand places like my own Boston,
property values are going to be high above what the same property would be
in some Podunk Middle American or Southern town.

They give you more bang for the buck, for sure,
but then, God forbid,
you actually have to live there. <Shudder.>

I've already got my own home, which is hardly a castle,
in the ownership of my kids through a family trust to avoid probate hassles,
and that alone makes their net worth significantly higher than it would otherwise be.

It isn't a great situation right now, but it is what it is.
If we want more affordable housing,
government, and not the free market, will be the catalyst for it.
Click to expand...
There are people who rave about places like the former Soviet Union, East Germany and Cuba where government owns all the housing. Unfortunately I suppose our government and media gaslight the American public into thinking those folks weren’t happy and that somehow we had it better than them.
 
cawacko said:
There are people who rave about places like the former Soviet Union, East Germany and Cuba where government owns all the housing. Unfortunately I suppose our government and media gaslight the American public into thinking those folks weren’t happy and that somehow we had it better than them.
Click to expand...
What people are those?
Who said anything about government owning all the housing?
Make straw man arguments much?
 
NiftyNiblick said:
What people are those?
Who said anything about government owning all the housing?
Make straw man arguments much?
Click to expand...
You're talking about the gov't being the catalyst for affordable housing. How in the world could/can the gov't do that? You want to go back to the mid 20th century where they put massive housing buildings in urban areas that became nothing but drug and gang infested projects?

Gov't has a role to play in streamlining approvals and reducing barriers to building affordable housing. The less cost upfront the quicker, and cheaper, housing can be built. But yes, that is market rate developers delivering that housing. The gov't and non-profits can't come close to delivering the needed housing.

But in your defense, you're older and you're a home owner. You have no incentive to want more housing built.
 
You must log in or register to reply here.
Back
Top