Guest Post from Jennifer Riner, Trulia
The dream of owning a million-dollar home often incites images of sprawling square footage, enhanced outdoor space and luxurious finishes. If you live in San Francisco, where million-dollar homes encompass over half of the market, the odds of finding homes in the high-end price range are especially high.
Not only has the share of million dollar homes increases nationally from 1.6 to 3 percent in the past four years, but the Bay Area specifically experienced exponential growth. saw the largest boost in million dollar homes in the U.S., from 19.6 percent in 2012 to an astonishing 57.4 percent in 2016 – a 37.8 percentage point increase.
In fact, the three markets that showed the largest increase of million dollar homes are all located in the Bay Area, with at number two and at number three. San Jose showed a 28.9 percent increase between 2012 and 2016, while Oakland saw a 14.5 percent increase in the same period. San Jose’s share of million dollar homes reached 46.3 percent, while Oakland’s market features 19.7 percent of homes valued at or over $1 million.
Between the three big contenders in the Bay Area, which neighborhoods boast the largest shares and surges of these high-priced properties? data reveals Westwood Park in San Francisco and Nineteenth Avenue in San Mateo grew the most.
San Francisco’s Biggest Increase
Conducting a ? The San Francisco neighborhood saw a whopping 93 percentage point boost in the past four years. In 2012, the share of million-dollar homes was a mere 2.9 percent. In May, 96 percent of homes are valued at $1 million or more.
Shopping for $1 Million or More in San Mateo
San Mateo held four out of the five neighborhoods with the biggest growth in million dollar homes. Nineteenth Avenue is now 100 percent filled with homes valued at least $1 million, a substantial increase from just 10.3 percent in May 2012.
In Southeast Hillsdale, 98.8 percent of homes are a million dollars or more, up from 12.9 percent in 2012. Over 98 percent of homes in Northwest Hillsdale have million-dollar values, up from 17.5 percent in 2012. And in Fiesta Gardens, 85.4 percent of homes are $1 million or more, a massive increase from just 4.9 percent in May 2012.
While the million-dollar share boosts in the Bay Area is bad for buyers searching on modest budgets, the data points positive for current homeowners who benefit from sizeable value increases.