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Maryland gained two more “million-dollar” cities in the past year — areas where the typical home is worth $1 million or more — according to a research report released Tuesday by Zillow, the tech real estate marketplace company.
The state now has 10 cities with typical real estate prices of $1 million or more in data collected in February, compared to eight in February 2023.
The state’s most expensive average real estate price is in Gibson Island in Anne Arundel County, with an average price of $2.85 million. Montgomery County takes spots two through five with Chevy Chase View ($1.41 million), Chevy Chase ($1.37 million), Potomac ($1.28 million) and Cabin John ($1.21 million). The next five include Royal Oak in Talbot County ($1.15 million), Bethesda ($1.12 million) and Dayton in Howard County ($1.02 million). Newcomers to the list for 2024 are Garrett Park in Montgomery County ($1.01 million) and Glenwood in Howard County ($1 million).
The US has a record-high 550 “million-dollar” cities, 59 more than a year ago, reversing losses from when home values were wobbling this time last year.
A tight housing market with few homes available has kept home values rising, even while affordability challenges have hampered buyers, the report showed. The good news for buyers in the market this home-shopping season is that new listings are on the rise as the effects of “rate lock” — occurring when homeowners are financially incentivized to keep their current home because of the low rate on their current mortgage — are weakening, and the hope for lower mortgage rates later this year may mean a second wave of buyer demand this summer.
While million-dollar cities were affected more than the typical US city when home values fell in late 2022, they have generally tracked with the national market over the past year, according to the report. The typical US home is worth 4.2% more than it was a year ago. In current million-dollar cities, the median year-over-year home value growth is 4.6%.
California is home to 210 million-dollar cities, more than the next five states combined. New Jersey has added the most million-dollar cities over the past year, gaining 14.
Florida, Texas and Delaware are the only states to have a net loss in million-dollar cities over the past year. Florida lost three million-dollar cities — Siesta Key, Santa Rosa Beach and Sanibel — while adding one, the Village of Palmetto Bay, near Miami. Texas lost two million-dollar cities in the Austin area, Sunset Valley and Volente, and added Bellaire, outside of Houston. The typical home in Delaware’s Dewey Beach fell below the million-dollar cutoff.
The New York City metro area, which includes parts of New Jersey and Pennsylvania, has the most million-dollar cities with 106 — 24 more than a year ago. San Francisco is next with 69, followed by Los Angeles with 63. Other than the New York City metro area, Los Angeles gained the most million-dollar cities over the past year, adding seven. Boston added four during that time, and San Diego, Chicago and San Luis Obispo each added three.
