Boston has ranked fifth among some of the largest US metropolitan areas with 11 “Million-dollar cities,” according to an analysis Zillow released Monday.
Between demographic trends and the effects of the coronavirus pandemic, 2020 brought a surge in the market, and Zillow announced that there are now 45 more US cities with a typical home value of at least $1 million than there were a year ago — marking the largest increase in at least a decade.
Zillow has designated 312 million-dollar communities in total, marking an increase of 104 from five years ago, with 70 percent concentrated in the nine coastal metro areas. San Francisco, New York, and Los Angeles dominate with more than half of all $1 million communities, while San Jose has 20, and Boston tied with Miami at 11.
“In 2020 home values soared nationwide because of incredible demand across all price tiers, which we expect to continue well into 2021,” Zillow senior economist Chris Glynn said in a statement. “Despite the label, there are homes available in these communities for less than $1 million, but buyers must be realistic about their wish list and act quickly in the current market, especially since homes are selling in a matter of days in many places.”
In November, home values were appreciating near 7.5 percent annually, Zillow reported. The growth comes after a year during which home prices appreciated at the lowest rate since 2013 and two cities fell off the million-dollar list.
“For sellers, it is possible to capitalize on the recent growth in these markets and relocate to far less-expensive markets — particularly with an increase in remote work offering flexibility in the job market,” Glynn said.
Zillow’s report is historically dominated by areas with natural amenities like the ocean or mountains, and many of the communities that joined the list in 2020 fit that mold.
“An increased demand in places like Potomac (Md.) and other more expensive areas around the country is happening because of the pandemic-driven need for more indoor and outdoor space, home offices, pools and more,” said Samer Kuraishi, a Best of Zillow Premier Agent and president of The One Street Company, a boutique real estate firm in Washington, D.C. “We’re seeing more buyers from afar using technology to tour homes and buy ‘sight unseen.’ “
Here are the typical home values of the Massachusetts communities that have joined the $1 million club:
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