According to a recent report, the proportion of homes in the United States that are valued at or above $1 million has nearly doubled over the past four years from 1.6 percent to 3 percent. Furthermore, this increase in price has primarily taken place in dense metro areas that are already experiencing a high cost of living, such as Honolulu, New York, Seattle and the California cities of San Jose, San Francisco, Oakland, Orange County, Ventura County, San Diego and Los Angeles. In fact, California dominated the list with seven of the top ten million-dollar housing markets.
Not surprisingly, San Francisco topped the list with the highest percentage of million dollar homes in the metro area being, 19.6 percent in May 2012 and at 57.4 percent in 2016, representing a 37.8 percent increase. San Jose took the number two position with a 28.9 percent increase, while Oakland saw a 14.5 percent increase. At number four, Orange County experienced an 8.9 percent increase, followed closely behind by Los Angeles with an 8.3 percent increase. San Diego was in the number seven position with a 5.2 percent increase, while Ventura County experienced a 4.6 percent increase.
Rising Housing Costs in Los Angeles
In 2012, approximately 8 percent of the homes on the Los Angeles market were more than a million dollars. In 2016, this figure increased to 16.3 percent, which means the number of million-dollar homes in Los Angeles has doubled. Furthermore, when looking more closely at Orange, Ventura and Los Angeles counties, the five neighborhoods with the biggest jump in million-dollar homes were all in Los Angeles County within South Bay, Glendale and Central LA. These neighborhoods include:
- Pacific Colony, Torrance
- Pacific South Bay, Torrance
- South Carthay, Los Angeles
- Emerald Isle, Glendale
- College Hills, Glendale
Pacific Colony experienced a whopping 80.9 percent change with 13.8 percent of homes being million-dollar homes in 2012 and 94.7 percent being million-dollar homes in 2016. Meanwhile, Pacific South Bay increased by 66.4 percent from 0.8 percent to 67.2 percent while South Carthay increased by 54.5 percent from 42.7 percent to 97.2 percent. Emerald Isle increased by 54 percent from 26.1 percent to 80 percent and College Hills increased by 52.5 percent from 34 percent to 86.5 percent during this same time period.
Several other Los Angeles neighborhoods also saw a marked increase in the number of million-dollar homes. Palms, for example, saw an increase from 7.6 percent in 2012 to 40.5 percent in 2016 while Venice saw an increase from 48.7 percent to 87 percent. Meanwhile, Silver Lake increased from 7.8 percent in 2012 to 43.8 percent in 2016.
On the other end of the spectrum, those neighborhoods with an established history as enclaves for the wealthy did not see such a dramatic rise in prices. Bel Air, for example, saw its million-dollar homes rise from 82.9 percent to 85.4 percent while the Pacific Palisades increased from 80.9 percent to 85.3 percent.
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(all data current as of 5/29/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.