Million-Dollar Listings Are Becoming the New Normal

Depressing news for many considering home ownership: million-dollar homes, which used to be a luxury item, are becoming the norm in many cities. A new study by Ralph McLaughlin, Trulia's chief economist, found that the number of million-dollar listings in the US has risen from 1.6 percent to three percent since 2012, but many metros and neighborhoods have seen a much larger increase. The biggest increase in seven-figure homes happened in California, Hawaii, Seattle, and New York City.

The Northern California Bay Area, including the cities of San Francisco, Oakland, and San Jose, has seen the most dramatic increase in the share of million-dollar homes. "Among the 100 largest metros, San Francisco has seen the largest increase in the share of million dollar homes in the country, growing from 19.6% of homes in 2012 to 57.4% in 2016," the Trulia study states. Southern California isn't far behind. "Each of the major Southern California housing markets — Los Angeles, Orange County, Ventura County, and San Diego — have witnessed a doubling in the share of million dollar homes over the past few years."

Manhattan has long been known for its pricey real estate, which explains why the percentage increase of million-dollar homes in New York is the smallest on the list; interestingly, however, it was the borough of Brooklyn that has seen the most dramatic increase in million-dollar homes.

The cities of Honolulu, Seattle, Miami, and Boston round out the list where million-dollar homes are the new normal. Visit Trulia to see the full study and list of neighborhoods within each city that have had the highest share increase of big-budget homes. Then, check out the comparison of a million-dollar home in two dramatically different real estate markets below, but be warned: the image will either affirm your choice of home city or leave you feeling terribly depressed by it.