Home sales

15 cities with the most luxury home sales

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Editor’s Note: This story originally appeared on Inspection Support Network.

One of the dominant economic stories since the start of the COVID-19 pandemic has been the fiercely competitive housing market. the median selling price of a home in the United States topped $400,000 for the first time in 2021 amid aggressive bids and bidding wars in markets across the country.

Today’s housing market challenges are the result of a powerful combination of supply and demand factors. The United States has underbuilt housing supply for years, with mortgage lender Freddie Mac estimating shortage of 3.8 million homes from 2020.

Before the pandemic began, the median selling price of a home in the United States was $329,000. In the third quarter of 2021, the median selling price peaked at $411,200. With more than half of homes now selling for over $400,000, fewer options are available for low-income or first-time buyers, and current homeowners looking to upgrade to larger or more beautiful have to pay a higher price to do so.

But even before the recent spike, the share of high-end home sales in the United States had grown over time.

To determine the metros with the highest percentage of luxury home sales, Inspection Support Network researchers analyzed the latest data from the Residential Mortgage Disclosure Act. The researchers ranked metropolitan areas based on the percentage of mortgage home sales above $1 million. In the event of a tie, the metro with the highest median property value for homes over $1 million was ranked higher. Learn more about our methodology at the end.

Here are the cities with the highest percentage of luxury home sales.

15. Phoenix-Mesa-Chandler, AZ

Phoenix, Arizona
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  • Percentage of luxury home sales ($1 million or more): 3.11%
  • Median property value for homes $1M+: $1,345,000
  • Median income for buyers of $1M or more: $350,000
  • Median down payment for homes $1M+: $410,000

14. Portland-Vancouver-Hillsboro, OR-WA

Aerial view of Portland with Mount Hood in the background.
josemaria-toscano / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 3.38%
  • Median property value for homes $1M+: $1,255,000
  • Median income for buyers of $1M or more: $315,000
  • Median down payment for homes $1M+: $390,000

13. Nashville-Davidson–Murfreesboro–Franklin, TN

Nashville, TN
jdross75 / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 3.92%
  • Median property value for homes $1M+: $1,335,000
  • Median income for buyers of $1M or more: $336,000
  • Median down payment for homes $1M+: $420,000

12. Austin-Round Rock-Georgetown, TX

Austin, TX
Photography Roschetzky / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 4.30%
  • Median property value for homes $1M+: $1,375,000
  • Median income for buyers of $1M or more: $377,000
  • Median down payment for homes $1M+: $410,000

11. Sacramento-Roseville-Folsom, CA

Sacramento, California
Andrew Zarivny / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 4.31%
  • Median property value for homes $1M+: $1,255,000
  • Median income for buyers of $1M or more: $346,000
  • Median down payment for homes $1M+: $400,000

10. Denver-Aurora-Lakewood, CO

Denver, Colorado
Kevin Ruck / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 4.98%
  • Median property value for homes $1M+: $1,285,000
  • Median income for buyers of $1M or more: $300,000
  • Median down payment for homes $1M+: $420,000

9. Miami-Fort Lauderdale-Pompano Beach, Florida

Miami, Florida
GagliardiImages / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 6.13%
  • Median property value for homes $1M+: $1,455,000
  • Median income for buyers of $1M or more: $451,000
  • Median down payment for homes $1M+: $490,000

8. Washington-Arlington-Alexandria, DC-VA-MD-WV

Washington, DC traffic with the Capitol Building in the background
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  • Percentage of luxury home sales ($1 million or more): 9.01%
  • Median property value for homes $1M+: $1,305,000
  • Median income for buyers of $1M or more: $311,000
  • Median down payment for homes $1M+: $360,000

7. Boston-Cambridge-Newton, MA-NH

Boston skyline summer day.
Danica Chang / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 12.11%
  • Median property value for homes $1M+: $1,355,000
  • Median income for buyers of $1M or more: $320,000
  • Median down payment for homes $1M+: $400,000

6. New York-Newark-Jersey City, NY-NJ-PA

New York City
Songquan Deng / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 12.28%
  • Median property value for homes $1M+: $1,435,000
  • Median income for buyers of $1M or more: $378,000
  • Median down payment for homes $1M+: $420,000

5. Seattle-Tacoma-Bellevue, WA

Aerial view of the roads leading to Seattle at sunset.
Punishes Sharma Photography / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 14.70%
  • Median property value for homes $1M+: $1,305,000
  • Median income for buyers of $1M or more: $272,000
  • Median down payment for homes $1M+: $390,000

4. San Diego-Chula Vista-Carlsbad, CA

Sean Pavone / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 19.40%
  • Median property value for homes $1M+: $1,375,000
  • Median income for buyers of $1M or more: $290,500
  • Median down payment for homes $1M+: $430,000

3. Los Angeles-Long Beach-Anaheim, CA

The streets of Los Angeles, where the median rent is relatively low
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  • Percentage of luxury home sales ($1 million or more): 27.51%
  • Median property value for homes $1M+: $1,405,000
  • Median income for buyers of $1M or more: $300,000
  • Median down payment for homes $1M+: $430,000

2. San Francisco-Oakland-Berkeley, CA

Houses in San Francisco, California
Sergei Novikov / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 49.36%
  • Median property value for homes $1M+: $1,425,000
  • Median income for buyers of $1M or more: $290,000
  • Median down payment for homes $1M+: $400,000

1. San Jose-Sunnyvale-Santa Clara, CA

The San Jose skyline, which has a median rent lower than the median mortgage payment
stellamc / Shutterstock.com
  • Percentage of luxury home sales ($1 million or more): 61.12%
  • Median property value for homes $1M+: $1,455,000
  • Median income for buyers of $1M or more: $289,000
  • Median down payment for homes $1M+: $400,000

Methodology

Man analyzing data on laptop
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To determine the metros with the highest percentage of luxury home sales, Inspection Support Network researchers analyzed the latest data from the Federal Financial Institutions Examination Council. Residential Mortgage Disclosure Act.

Only conventional home purchase loans issued in 2020 were considered in the analysis. The researchers ranked metropolitan areas based on the percentage of mortgage home sales above $1 million.

In the event of a tie, the metro with the highest median property value for homes valued over $1 million was ranked higher. To improve relevance, only metropolitan areas with at least 100,000 inhabitants were included.

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