• There are currently 464 U.S. cities where the typical home value is $1 million or more. There were 522 at the housing market’s peak last July.
• There are 190 of these “million-dollar” cities in California alone, more than the next six states combined. 
• The New York, San Francisco and Los Angeles metro areas have the most million-dollar cities. 

There are 464 cities in the U.S. where the typical home is worth $1 million or more. That’s 58 fewer “million-dollar cities than last July, when home values were at their peak nationally. In the six months after the peak, the typical home in million-dollar cities lost an average of $114,500 in value. 

The housing market feels much different than recent years as it continues to rebalance toward normal. Last year set a record for the most new million-dollar cities amid supercharged housing demand. Both demand and supply hit the brakes in the second half of 2022 after mortgage rates spiked. Buyers, stretched thin in what they could afford, flocked to lower-priced homes, a reversal from earlier in the pandemic.

Expensive markets felt the biggest impact of this slowdown with fewer buyers able to use the support of historically low interest rates to help afford homes with a high price tag. The typical U.S. home is worth 4.1% less than it was last July, according to the Zillow Home Value Index. In current million-dollar cities, the typical home has lost 6.3% of its value during that time, on average. 

Higher mortgage rates have overwhelmed these price cuts, so buying a home has not gotten any less expensive for buyers financing their purchase. Monthly payments on the typical U.S. home were 9.4% higher in January than they would have been in July, despite the home value decline.

While sellers may not be able to sell their homes for as much as they would have last summer, the vast majority of homeowners still hold significant equity gains. Home values are higher than last year in most markets, and higher than they were before the pandemic everywhere in the U.S.

Thirty-two states are home to at least one million-dollar city. There were 33 states with one last summer, but Montana’s lone million-dollar city has since fallen off. Gallatin Gateway, a small community in the Bozeman area, has seen its typical home value fall to $987,824 – down about $117,000 since peaking in June. 

Coastal states continue to dominate the list of million-dollar cities. Of the 464 current million-dollar cities, 387 are in a state on either U.S. coast. There are 37 cities with a typical home value of more than $3 million, 36 of them in coastal states and one in Hawaii. 

California alone has 190 million-dollar cities, more than the next six states combined. But California has also lost 20 million-dollar cities since July, easily more than any other state. Texas and New Jersey are next, losing five million-dollar cities each. Florida has lost four, and Utah and Hawaii have each lost three. 

At the metro level, the New York City area has the most million-dollar cities, with 90. San Francisco (67 million-dollar cites), Los Angeles (53) and San Jose (21) are next, with Boston (19) holding enough strength to round out the top five, after tying with Seattle at this time last year. 

Los Angeles has lost the most million-dollar cities since July, with seven falling below that mark. The New York City metro area has lost six, San Francisco has lost four and Austin has lost three during that time.