The Dual-Track Housing Market: A Closer Look at America’s Real Estate Divide

A recent report from Zillow highlights a stark contrast in America’s housing market, with 550 cities boasting median home prices of $1 million, yet none of them appearing on the list of Zillow’s top ten hottest housing markets of 2024. This disparity underscores a growing divide, where some Americans can afford million-dollar homes, often with low-interest mortgages, while others are increasingly priced out of the market due to high interest rates and a lack of affordable options.

California leads the list with 210 cities having million-dollar home values, mostly in metropolitan areas around Los Angeles or San Francisco, though San Diego and San Jose are also represented. On the East Coast, New York and Boston metropolitan areas dominate, with appearances from Washington, D.C., and Miami, Florida. This trend reflects a shift where once-aspirational cities are now places people move to only after achieving financial success, highlighting a significant increase in housing costs compared to the national median.

In response, many Americans are relocating to cities with lower costs of living and more affordable housing options, such as those in America’s Sunbelt and even traditionally colder regions like Cleveland, Ohio, and Buffalo, New York. This trend underscores a notable contrast, as most cities on Zillow’s top ten list have median home prices close to or below the national average, revealing a housing market that is increasingly divided between those who can afford high-priced homes and those who cannot.