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Zillow's definition of a $1 Million Dollar Neighborhood: a ZIP code where at least 10 percent of homes are valued at $1 million or more. (Photo: Pexels)
This article first appeared in the October 2017 issue of Pro Builder.

An increasing number of neighborhoods are seeing home prices reach seven figures. According to new analysis from online real estate marketplace Zillow, as of May this year, 1,280 U.S. ZIP codes meet its definition of a $1 Million Neighborhood, up from 958 in 2014 and 1,152 last year.

Zillow defines a $1 Million Dollar Neighborhood as a ZIP code where at least 10 percent of the homes are valued at $1 million or more. Around 4 percent of all U.S. ZIP codes have enough million-dollar homes to qualify.

The New York-Northern New Jersey market has both the most million-dollar neighborhoods at 254 total, and the highest increase in the nation, adding 53 since 2014. The Los Angeles-Long Beach-Anaheim market has the second most at 146, having added 29 over the last three years. The San Francisco metro area has 125 million-dollar neighborhoods, the third most in the nation, but has added 36 since 2014, the second most.

San Jose, Calif., (46) and Washington, D.C., (42) round out the top five list of the most million-dollar neighborhoods. Seattle has 38 such ZIP codes, up from just 16 in 2014. Phoenix (8 total), Houston (6), and St. Louis (4) are among the metros that haven’t seen increases. Columbus, Ohio; Indianapolis; and Pittsburgh, all of which have Zillow Home Value Index valuations under $200,000, have no million-dollar neighborhoods.