Even with a housing market in which median home prices are rising 20% year over year each month, only one market has median prices above $1 million.
The median price of a home in the United States is about $400,000. A few markets are close to half that, particularly old industrial cities like Detroit and Cleveland.
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However, prices in large coastal cities, particularly in California, are double the national figure. The highest is San Jose at $1,390,000. The area is home to America’s most successful tech companies, many of which pay large portions of their employees well over $200,000 a year.
San Francisco, Ventura and San Diego have median home prices over $900,000.
Home prices in San Jose likely will hold up despite high inflation and surging mortgage rates. The success of the companies in and around the city continues to be largely unharmed by economic issues, and they will weather a recession well.
Homes in San Jose will remain scarce. New home building across the country has been hit by shortages and high prices of construction material. Labor costs have risen as well. No matter where a housing market is, these problems are inescapable.
The United States permanently will have at least one home market averaging over the million-dollar mark.
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