Thanks to steadily rising prices, San Diego now has 25 neighborhoods where at least 10 percent of the homes are priced at $1 million or more.
Zillow, the online real estate company, analyzed real estate prices in zip codes across the country and found 1,280 such “million dollar neighborhoods” this year, an increase of 346 since 2014. San Diego added eight million-dollar zip codes.
West Coast metropolitan areas, where home values have bounced back fastest from the Great Recession, saw the greatest increase in the number of million dollar neighborhoods over the past three years. Nearly 74 percent of all zip codes in the San Francisco metropolitan area now meet the benchmark, and Los Angeles gained 29 for a total of 146.
But Las Vegas, among the hardest hit by the Great Recession, has only gained one million-dollar zip since 2014.
“As home values reach new peaks, $1 million homes are increasingly common, even in neighborhoods once considered middle class,” said Zillow’s Chief Economist Dr. Svenja Gudell. “The U.S. median home value is just over $200,000, but in San Francisco, Los Angeles and other expensive cities, homes are worth much more.
“As home values hit seven figures in many neighborhoods, it’s going to have real impacts on affordability for middle-class homeowners whose incomes haven’t kept up, and this imbalance especially has implications for people on fixed incomes whose property taxes are rising along with their home value,” she added.
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