California's million-dollar homes leave residents in crisis

In the United States, housing costs have soared, particularly in California, where cities like Los Angeles, San Francisco, and San Jose face record high prices. Reports indicate that the overall cost of living in Los Angeles is 50 percent higher than the national average, with median home prices reaching nearly $1.2 million and median rent at $3,600 a month. Furthermore, energy bills average near $220 monthly while phone bills hover around $212. The housing market is largely driven by limited supply and significant wealth from the tech and entertainment sectors. The trend of high housing prices is evident in major Californian cities. In San Jose, 72 percent of homes are now valued over $1 million, increasing from 66 percent the previous year. San Francisco follows closely, with 57 percent of homes crossing the million-dollar threshold. The report by Lending Tree indicated a clear demand for properties, as 44.02 percent of owner-occupied homes in prominent Californian cities are valued at $1 million or more. This marks a rise from 2022, when 53 percent of homes in San Francisco and 66 percent in San Jose were priced similarly. In contrast, certain cities across the country, such as Cleveland, Buffalo, and Louisville, present stark differences, featuring a minimal percentage of million-dollar homes. Cleveland reports that about 1 percent of its homes are valued at seven figures, while Buffalo and Louisville stand at 1.2 percent and 1.4 percent, respectively. However, even these cities experienced a rise in million-dollar properties, nearly adding 5,800 homes combined since 2022. The disparity between California and these cities highlights the stark contrast in the housing market. Experts attribute the surge in home prices largely to a lack of available properties, with the United States facing a deficit of millions of housing units. Stricter zoning laws in large metropolitan areas like Los Angeles complicate the construction of new homes, leading to less supply and inherently higher prices. As a result, the trend shows that paying $1 million for a home is quickly becoming the norm, with the share of million-dollar homes in the 50 largest cities increasing post-pandemic. Comparatively, the nation saw nearly 11 percent of owner-occupied homes valued at $1 million or more in 2023, up from 8 percent in 2022.