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Texas is one of three states in the U.S. with fewer "million-dollar cities" than a year ago, data shows.
Why it matters: Luxury real estate prices are rising elsewhere, largely because the wealthy are best positioned to buy in a market with low inventory and high mortgage rates.
Reality check: Competition is cooler in Texas' major metros, where the stock of homes for sale has bounced back faster than in other parts of the country.
State of play: Typical home values fell below $1 million in Sunset Valley and Volente near Austin, per a recent Zillow report, another sign of the metro's backslide from the pandemic housing boom.
By the numbers: Bellaire is among the 14 Texas cities where homes are typically worth at least $1 million, a tally that's down from 15 a year earlier, per Zillow.
- Eight of the areas are in Dallas-Fort Worth, led by Westlake and Highland Park.
- The list also includes three cities in the Austin area, San Antonio's Hill Country Village and Round Top, the antiquing haven tucked between Austin and Houston.
The big picture: Persistent demand for homes outside of downtowns is partly why the number of million-dollar cities nationwide climbed from 491 to 550 in the last year, says Stephanie Anton, a Texas-based president at The Corcoran Group.
- The other side: Hyperlocal factors like low lake levels in Volente, which is nestled along Lake Travis, can temper housing demand, Anton tells Axios.
What they're saying: "For affluent consumers, real estate isn't just a shelter decision," says Anton, who compares their motivation to buy a new home with purchasing a designer handbag.
- "It's about signaling who you are" and acquiring something unique.