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U.S. cities with average home price of $1 million tripled last year

Forty-four of the 146 new cities where the typical home price tops $1 million are located in California, and mostly in coastal regions like Los Angeles and San Francisco. File Photo by Terry Schmitt/UPI
Forty-four of the 146 new cities where the typical home price tops $1 million are located in California, and mostly in coastal regions like Los Angeles and San Francisco. File Photo by Terry Schmitt/UPI | License Photo

Feb. 23 (UPI) -- A record 146 cities in the United States gained million-dollar status -- where a typical home is valued at least that much -- in 2021.

The new cities crossing the threshold raise the total number of million-dollar cities to 481, according to Zillow.

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Estimates show that 49 more cities could join the club by midyear as last year's numbers are almost triple those of 2020.

The average price of a home went up 19.6% last year to $408,100. That's $85,500 higher than in January 2020.

Home ownership had surged to the highest level on record in 2020, according to a survey released Wednesday by the National Association of Realtors. The assessment noted a decline in the number of Black homeowners.

The Zillow research showed Idaho, Tennessee and Montana gained million-dollar cities for the first time, while others, including Massachusetts, New York and California, added more million-dollar cities.

"We're seeing how the geography of wealth in the U.S. has begun to shift, as 2021 was the first year for both Idaho and Montana to place any cities on this list, and now those Western states boast three million-dollar cities each," Zillow said in its report.

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Forty-four of the 146 new cities are located in California, and mostly in coastal regions like Los Angeles and San Francisco.

The most expensive city in the country is Indian Creek, an island in Biscayne Bay off Miami, where the typical home costs around $28 million and boasts owners like Tom Brady and Enrique Iglesias.

The surge in home prices comes as a result of a longstanding shortage of homes and an increased demand for homes during the COVID-19 pandemic.

Escalating prices have made it more difficult for homeowners to afford a property.

A 7% down payment for first-time buyers translates to an average of $70,000 for a million-dollar city.

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