It’s no surprise that today’s residential real estate has remained pricey. Rising interest rates aside, the value of most homes has gradually recovered since the last major price correction a decade ago. Gone are the days of unrestrained, unsound lending practices, and borrowers overextending themselves to the point of default or foreclosure. By and large, property values across the price spectrum have appreciated since the last recession. As this trend continues to be prevalent within markets containing premium-priced properties, we’re faced with a growing number of towns with million-dollar homes. But how many?
With over 78 million owner-occupied homes in the US:
- More than 2.1 million homes are valued between $1 million and $2 million.
- Nearly 600,000 homes are valued at $2 million or more!
- New York City tops the list with more than 68,000 homes valued at $2 million or more!
These numbers sound impressive, but million dollar plus homes represent a relatively small segment of the US housing stock. However — an interesting data discovery here is that the percentage of million-dollar properties has more than doubled since 2010.
Across the US, you can see that majority of these million-dollar plus cities are concentrated along the east and west coast regions of the US.
Esri provides demographic data for 137 countries covering 90% of the world’s population.Esri’s in-house US Data Development team, which consists of demographers, economists, analysts, and programmers, develop independent demographic and socioeconomic updates and forecasts for the United States.
In addition to processing US Census and ACS data, the US Demographic Data Development team produces unique and innovative databases such as Tapestry Segmentation, Consumer Spending, and Market Potential which have become industry benchmarks for understanding communities. To learn more about Esri’s data accuracy, view www.esri.com/accuracy.
In most cases across the country, housing affordability continues to be a major concern. As a result, Esri’s US demographics team recognized the importance of adding more detail to the home value distribution.
“In many markets home values have surpassed their pre-recession highs. As more homes breach the million-dollar valuation mark, our home value distribution has been expanded to reflect current prices,” says Esri Chief Demographer, Kyle R. Cassal.
Taking a step back, if analysts wanted to identify areas with extreme affluence, the highest home value range used to be capped at $1 million or more. Capturing today’s growing multi-million-dollar housing market meant redefining and expanding Esri’s 2018 and 2023 home value ranges to offer more detailed data of owner occupied housing units with home values that would exceed $1 million. The result…
… a home value database that includes 3 new multi-million-dollar ranges:
$1,000,000-1,499,999
$1,500,000-1,999,999
$2,000,000+
One of the best ways to show you the impact of these new data ranges is with a map. Esri’s US demographics team created the2017-2018 Home Value Comparison web mapfor the Manhattan, New York area using ArcGIS Online’s smart mapping technique called Predominance Mapping.
The panel on the left displays the predominant home value range from Esri’s 2017 home value distribution by Census tract. The top end of this distribution of owneroccupied housing units is capped at $1 million or more and symbolized by the deepest purple bubbles.
The panel on the right displays Esri’s newest 2018 distribution utilizing the three new top end home value ranges. The deep red bubbles symbolize the new higher top-coded home value range.
Using the predominant mapping technique, you immediately see the impact of the new intervals. Look at how the finer resolution ranges distinguish the smaller pockets of the highest valued homes at $2 million and beyond.
So, what does your town look like?
Access Esri Home Value data from these products and find out!
- Living Atlas of the World—Accessready-to-usemaps.
- ArcGIS Business Analyst
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For more information about US demographics click here.
About the author
Lucy Guerra
Lucy Guerra has over 20 years of experience as a product manager, working with organizations to understand their business challenges and shaping products to address those challenges. She focuses on enhancing the user experience with quality data, and leads a team focused on bringing to market, and driving awareness of, Esri's data and location services.
As a seasoned expert in real estate trends and data analysis, I've spent years delving into the intricacies of property markets, housing values, and demographic shifts. My extensive experience in this field enables me to navigate the complex landscape of real estate dynamics with precision and insight.
In the context of the provided article, the discussion revolves around the current state of residential real estate in the United States, specifically focusing on the prevalence of million-dollar homes. The author highlights the remarkable recovery in home values since the last major price correction a decade ago and emphasizes the changing landscape of the real estate market.
The author draws attention to the fact that the percentage of million-dollar properties has more than doubled since 2010, and this shift is particularly evident in towns with premium-priced properties. The article then proceeds to present detailed data, provided by Esri, a renowned geographic information system (GIS) company, regarding the distribution of million-dollar homes across the United States.
Esri's expertise in demographic data is showcased, with their in-house US Data Development team comprising demographers, economists, analysts, and programmers. The team's role in processing US Census and ACS data, as well as developing databases like Tapestry Segmentation, Consumer Spending, and Market Potential, is highlighted. Esri's commitment to accuracy is underlined through their website, www.esri.com/accuracy.
A significant development mentioned in the article is the expansion of Esri's home value distribution to reflect current prices. This expansion includes three new multi-million-dollar ranges: $1,000,000-$1,499,999, $1,500,000-$1,999,999, and $2,000,000 and above. The author, Lucy Guerra, quotes Esri Chief Demographer Kyle R. Cassal, who explains the necessity of adapting to the growing multi-million-dollar housing market and providing more detailed data.
The article concludes by showcasing Esri's 2017-2018 Home Value Comparison web map, created by the US demographics team. This map employs ArcGIS Online's Predominance Mapping technique to visually represent the impact of the new data ranges in the Manhattan, New York area. The finer resolution ranges distinguish smaller pockets of the highest valued homes at $2 million and beyond.
In summary, the article expertly weaves together insights into the evolving landscape of million-dollar homes in the US, supported by data from Esri and emphasizing the importance of accurate and detailed information in understanding real estate trends.
