The growth rate of super luxury homes—those valued at $5 million or more—is outpacing homes valued at $1 million or more, according to a report Wednesday by Trulia.
In the 100 largest metro areas in the U.S., 4.3% of homes overall are currently valued at $1 million or more, 3.8 times the amount that were logged in 2002, the report said.
In pricey San Francisco, homes valued at $1 million or more comprised 66% of the total housing market in the city in 2017, nearly tripling the 22.4% market share they held in 2012.
Nearby, in Oakland, California, the share of million-dollar-plus homes grew nearly five times in the last five years, from 5.1% in 2012 to 23.8% in 2017, according to the report.
The number of $5 million homes, though, is growing at an even faster rate, with nearly five times as many super-luxury homes now than there were in 2002. In the last year, 0.28% of homes across the 100 largest metro areas in the country were valued at $5 million or more.
In the past year alone, the share of homes valued at $5 million and up increased 19.8%, which is 2% more than $1 million plus homes.
San Francisco had the largest share of properties valued at $5 million or more. There, the super prime homes made up 3% of the market. Long Island, New York—home to the Hamptons and a multitude of million- dollar beach homes—had the second highest share at 2.2%, according to the report.
The increase is beyond inflation, said Cheryl Young, senior economist at Trulia, “but in certain areas, like San Francisco, you have a low inventory and high income earners,” she said. “As they start to look for homes to buy, homes that were $1 million or $2 million years ago, people can get $5 million for now.”
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