SEATTLE, Aug. 17, 2017 /PRNewswire/ -- Nearly one in 20 residential ZIP codes meets Zillow's definition of a $1 Million Neighborhood, meaning at least 10 percent of the homes there are worth seven figures, according to a new Zillow® analysis. There are 346 new $1 Million Neighborhoodsⁱ in the U.S. since 2014, as the housing market continues its push toward fully recovering.

Zillow analyzed residential ZIP codes across the country, looking for places where at least 10 percent of homes in the area are worth $1 million or more, making it a $1 Million Neighborhood. About 4 percent of all ZIP codes analyzed had enough $1 million homes to qualify. There are now a total of 1,280 $1 Million Neighborhoods in the U.S., up from 958 in 2014.

U.S. home values are at a record high as the housing market continues its recovery from the Great Recession. As a result, an increasing number of ZIP codes are finding themselves on the $1 Million Neighborhood list. West Coast metropolitan areas, where home values have bounced back fastest, saw the greatest increase in the number of $1 Million Neighborhoods over the past three years. 

Nearly 74 percent of all ZIP codes in the San Francisco metropolitan area meet the $1 Million Neighborhood benchmark. One in five San Francisco ZIP codes have been added to the $1 Million Neighborhoods list since 2007. The San Francisco metropolitan area has gained 36 $1 Million Neighborhoods over the past three years, second to New York, which gained 53.

"As home values reach new peaks, $1 million homes are increasingly common, even in neighborhoods once considered middle class," said Zillow's Chief Economist Dr. Svenja Gudell. "The U.S. median home value is just over $200,000, but in San Francisco, Los Angeles and other expensive cities, homes are worth much more. As home values hit seven figures in many neighborhoods, it's going to have real impacts on affordability for middle-class homeowners whose incomes haven't kept up, and this imbalance especially has implications for people on fixed incomes whose property taxes are rising along with their home value."

Not all markets are seeing an increase in the share of $1 Million Neighborhoods. In St. Louis and Cincinnati, where the median home value is nearly $50,000 below the national median, no new $1 Million Neighborhoods were added over the past 10 years.

Las Vegas, among the hardest hit by the Great Recession, has only gained one $1 Million Neighborhood since 2014. 

Zillow
Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG), and headquartered in Seattle.

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ⁱ A $1 Million Neighborhood code is defined as a ZIP code where at least 10 percent of homes in that ZIP are worth $1 million or more.
ⁱⁱ The Zillow Home Value Index (ZHVI) is the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted.

SOURCE Zillow