Number of Million-Dollar Cities Rose to Record High in 2021
A record 146 new U.S. cities became “million-dollar cities” in 2021 as typical home prices rose to at least $1 million in some areas, bringing the total number of millionaire metros to 481, according to Zillow. If current appreciation rates carry over into the second quarter of 2022, 49 additional cities will join the $1 million club, pushing the new record even higher.
A surge in housing demand led to sky-high price gains throughout 2021 as the typical U.S. home gained 19.6% in value. Though most million-dollar cities exist within major coastal metros, new states like Idaho, Montana, and Tennessee tallied record price gains which pushed more unexpected seven-figure cities into the mix.
The surge in demand for housing last year sent home values skyrocketing, even in places where prices already were sky-high, and that helped tip a record number of cities into the million-dollar club. The locations of these newly seven-figure towns bust the myth that everyone fled California and the Northeast last year, as California, Massachusetts and New York led the pack for the most new cities with home values above $1 million. Still, we’re seeing how the geography of wealth in the U.S. has begun to shift, as 2021 was the first year for both Idaho and Montana to place any cities on this list, and now those Western states boast three million-dollar cities each.