May 18, 2024 - Real Estate

$1M+ homes are the norm in some Colorado cities

A map showing the share of cities with typical home values above $1 million, by U.S. state. Hawaii has the largest share, at 25%. California is second at 21.8%, and New Jersey a distant third at 9.8%. States with the highest share of "$1m cities" tend to be in the West and Northeast.
Data: Zillow; Map: Erin Davis/Axios Visuals

Colorado ranks No. 6 among the top 10 states with the most cities where the typical home value is $1 million, per a recent Zillow report.

Why it matters: Wealthy people are the ones who can play in this market, pushing more homes into the luxury price range.

State of play: Luxury sellers and buyers — particularly around the $1.5 million price point — are making moves in Denver, Corcoran Perry & Co. CEO Jon Larrance tells us.

The big picture: The number of U.S. million-dollar cities climbed from 491 to 550 in the last year partly because demand for homes outside of urban areas has grown since the pandemic, Stephanie Anton, president of the Corcoran Affiliate Network, tells Axios.

What they're saying: "For affluent consumers, real estate isn't just a shelter decision," Anton says.

  • People with more means are motivated to buy a new home in the same way they're motivated to buy a new luxury handbag, Anton explains.
  • It's about signaling who you are, acquiring something unique and buying something because you're "worth it" or "worked hard for it," she says.

The other side: Florida, Texas and Delaware have fewer million-dollar cities than a year ago, per Zillow's report.

The intrigue: "Luxury tends to lead us out of difficult times," Anton says. After 2008, high-end homebuyers were the first to make moves.

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