$1M Home Prices Creeping into New Neighborhoods

According to Trulia, there are 838 $1M+ neighborhoods in the US as of October 2018. Of those 838 neighborhoods, 105 of them are new this year to this home price level. California has 29% of these neighborhoods with a median home price of at least $1M. The states of New York, Florida and Washington follow in California’s $M footsteps in that order.

Though 82.8% of all $1M neighborhoods are in CA, NY, FL or WA, Colorado ranked 5^th with 27 neighborhoods being $1M neighborhoods. Most of those $1M neighborhoods are in the Boulder area of Colorado…9.4% of Boulder neighborhoods became $1M neighborhoods this year.

Take a look at this chart to see the percentages of $M neighborhoods among the top 10 metros nationwide.

Metro                 % of $M neighborhoods            %change/year

1. San Jose                70.0%                                        14.3%
2. San Francisco         81.0%                                        13.7%
3. Oakland                 30.7%                                         5.8%
4. Honolulu                19.8%                                         3.6%
5. Orange County        20.2%                                        3.0%
6. Los Angeles             19.6%                                        2.1%
7. San Diego                13.8%                                       2.0%
8. Seattle                     13.3%                                      1.9%
9. Ventura County         10.5%                                      1.6%
10. Long Island               10.1%                                      1.3%

Not surprisingly, San Jose, San Francisco and Oakland have the highest proportion of $1M homes/neighborhoods and saw the three largest increases of those neighborhoods during this past year.

Austin’s Barton Creek neighborhood was the first neighborhood this year to cross into this $1M territory. Barton Creek’s median home price jumped from $935,000 in 2017 to $1.02M in 2018. Five of Nashville’s 567 neighborhoods are $1M neighborhoods and 2 of those 5 crossed over this year. Washington DC has 16 $M neighborhoods, 5 of which crossed this threshold in this last year. Baltimore, just one hour north of Washington DC, has no $M neighborhoods as of October 2018.

The neighborhood of Aspinwall Hill in Brookline MA was one of 10 local areas that helped this Boston suburb cross the $1M threshold. Indianapolis’s Crows Nest neighborhood jumped 9.1% this year from $977,000 in 2017 to $1.07M in 2018. Providence’s Lily-Almy Pond neighborhood in Rhode Island jumped from $843,000 in 2017 to $1.15M in 2018.

Neighborhoods that are likely comers to the $1M level in 2019 include Fort Lauderdale’s Birch Park Finger Streets, Renton’s (Seattle) Stonegate neighborhood and Sandy Springs’ (Atlanta) Cherokee Park.