The housing market in California is booming, with more cities joining the list of “million-dollar cities.” According to recent data, the state now has 210 cities where the median home value is at least $1 million, up 15 from the last count in 2023.
Surprisingly, some once-modest towns like Bonita, Tustin, and San Gabriel have now made it onto the list of million-dollar cities. This trend is reflective of the overall housing affordability crisis in California, where soaring demand and limited supply have driven up home prices across the state.
The majority of California’s million-dollar cities are coastal, with homes offering ocean views and proximity to the beach being highly sought after. However, even non-coastal towns like Indian Wells, Tahoe City, and Truckee have seen their median home prices reach the million-dollar mark.
The housing market in Southern California is particularly unaffordable, with cities like Tustin and Bonita experiencing significant increases in median home values over the past five years. Despite the rising prices, median household incomes have not kept pace, making it increasingly difficult for middle-income families to afford homes in the state.
Overall, California leads the nation in terms of the ratio of median home values to median household incomes, with homes being worth at least 10 times more than what the average household earns. This disparity is a clear indication of the challenges faced by residents in the state when it comes to housing affordability.
As the housing crisis continues to spread to neighboring states and California continues to lose residents, the issue of housing affordability remains a top concern for policymakers and residents alike. Stay tuned for more updates on this developing story.