$1 million may no longer get buyers into the luxury home market | 2018-01-10
As home prices continue to rise across the U.S., and homebuilders place a heavier focus of luxury homes, the number of $1 million homes quadrupled since 2002 to make up 4.3% of all homes.
In fact, as they continue to become less scarce, $1 million may no longer get buyers into the luxury home market, according to the latest Trulia research report.
Trulia argues that $5 million is now the new bar for luxury living. But surprisingly, even $5 million homes are becoming less exclusive, as the number of these homes is five times higher than in 2002.
Of the more than 7,000 listings in the top 100 U.S. metros in 2017, 0.28% were listed at $5 million or more. On the other hand, the number of $1 million homes grew three times in San Francisco and five times in Oakland, California to make up 66% and 23.8% of the housing market, respectively.
Even in these high-end markets like San Francisco, listings priced at $5 million or more made up just 3% of all listings. Long Island, New York, held the second highest share at 2.2%.
The map below shows where these $5 million homes are concentrated.
Click to Enlarge
Trulia’s research found many of these expensive homes have common amenities such as expansive acreage, breathtaking views, pools, tennis courts, custom features built by well-known architects, and even unique amenities such as bulletproof glass, 24-karat gold fixtures and swim-up bars.