San Diego's share of million-dollar homes is high, but slipping

Nearly 40% of homes are worth at least $1 million in the San Diego metro area, down from 43% a year ago, per a new report from Redfin.

• The city ranks 5th in the country for its share of houses with that price tag.

Why it matters: Low inventory is pushing up prices nationwide and sending more into seven-figure territory, but the share of million-dollar homes in San Diego is somewhat slipping.

The big picture: Nearly one in 10 U.S. homes was valued at $1 million or more as of June, a proportion close to last summer's all-time high and up from a 12-month low in February, the real estate brokerage found.

• California's slice of million-dollar houses has risen 12.5 percentage points since pre-pandemic June 2019, data shared with Axios shows.
• There were more than 3 million residential properties listed at $1 million or higher this June, compared to about 1.7 million in 2019.

Zoom out: Prices are largely dictated by local markets. The portion of homes worth at least that much was up slightly compared to June 2022 in 55 of the 99 most populous U.S. metros, according to Redfin.

• Parts of New England gained million-dollar homes fastest, but San Francisco posted the highest share at more than 81%.

What they're saying: "In most of the country, expensive properties that are in good condition and priced fairly are attracting buyers and in some cases bidding wars, mostly because for-sale signs are few and far between right now," Redfin economics research lead Chen Zhao says in the report.

Between the lines: Rising prices are a boon for millions of homeowners who've seen big gains in equity in recent years, Axios' Emily Peck reports.

• Yes, but: With mortgage rates at a 22-year high, U.S. housing affordability looks increasingly bleak for buyers.

Zoom in: San Diego voters a year from now could be asked to weigh in on a ballot measure that would charge a fee on sales of high-end homes — which would start at 2.5% on homes of $2.5 million and increase gradually on homes valued up to $25 million — to fund low-income housing construction.

• That measure, pushed by the San Diego Housing Federation, hasn't been placed on next year's ballot yet, but is collecting endorsements, including one from City Council President Sean Elo-Rivera.

Los Angeles passed a similar "mansion tax" last year, and at least in the early months after it took effect, it slowed down sales the city's most expensive homes.