Supply Imbalances Trigger Ever Higher Prices

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Fast-growing, land-constrained regions dominate the ranks of states with the most million-dollar homes.

August 01, 2003

Fast-growing, land-constrained regions dominate the ranks of states with the most
million-dollar homes, telling a story of supply imbalances in many parts of the country.
Three-quarters of the million-dollar homes are in just 10 states, and California is the poster child, with 41% of the U.S. total.

Bob Rivinius, CEO of the California Building Industry Association, says the state needs a million new homes to meet pent-up demand. Then it needs 230,000 new homes and apartments annually to keep pace. He says high fees, lack of insurance for multifamily construction, local growth controls and lawsuits by anti-growth groups will limit the number of new units built in California this year to a record 186,000.

Million-Dollar Single-Family Homes by State
Owner-occupied single-family homes
Homes valued at $1 million-plus
% of total U.S. million-dollar homes
1. California
5,527,618
128,619
41.0%
2. New York
2,689,728
22,327
7.1%
3. Florida
3,242,202
18,094
5.8%
4. Connecticut
728,244
13,906
4.4%
5. Illinois
2,470,338
12,386
3.9%
Total Top Five
14,658,130
195,332
62.2%
6. New Jersey
1,701,732
11,869
3.8%
7. Texas
3,849,585
10,137
3.2%
8. Massachusetts
1,187,871
10,090
3.2%
9. Washington
1,157,462
7,384
2.4%
10. Michigan
2,269,175
5,989
1.9%
Total Top 10
24,823,955
240,801
76.7%
Total U.S.
55,212,108
313,759
100.0%
Source: NAHB, 2003. Analysis of 2000
Census Bureau data does not include condominiums or co-ops.

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