Metropolitan areas with the most million-dollar homes

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Historic row homes in Columbia Heights neighborhood of Washington.

amedved | iStock | Getty Photos

Million-dollar properties aren’t frequent within the U.S., however you are extra more likely to discover these properties alongside the coasts.

That is in keeping with a LendingTree study that ranked the nation’s 50 largest metropolitan areas by the share of owner-occupied properties value $1 million or extra.

The common share of million-dollar owner-occupied properties within the 50 largest metros is 4.71%. However in San Jose, California, 52.89% are value $1 million or extra, and in San Francisco, 40.37% are.

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Different metros with the best share of million-dollar properties included Los Angeles, San Diego, New York, Seattle, Boston, Washington, Miami and Denver.

By comparability, locations like Buffalo, New York; Cleveland and Pittsburgh had the smallest share of million-dollar properties, representing lower than 1% of owner-occupied properties.

Metros with essentially the most million-dollar properties

  1. San Jose, California: 52.89%
  2. San Francisco: 40.37%
  3. Los Angeles: 18.55%
  4. San Diego: 13.52%
  5. New York: 10.53%

Metros with the fewest million-dollar properties

  1. Buffalo, New York: 0.56%
  2. Cleveland: 0.59%
  3. Pittsburgh: 0.67%
  4. Columbus, Ohio: 0.73%
  5. Cincinnati: 0.78%

The findings come amid growing concerns about housing affordability as mortgage charges spike. 

The median dwelling itemizing value nationwide reached a document $450,000 in June, up practically 17% from the earlier 12 months, according to Realtor.com. Many Individuals even have much less shopping for energy than a 12 months in the past, with 30-year fixed-rate mortgages hovering around 6% for so-called conforming loans of $647,200 or much less.

Certainly, rising rates of interest have value homebuyers on a $3,500 month-to-month funds $165,000 in spending energy because the finish of 2021, a Redfin report discovered.

How one can restrict tax payments when promoting a high-priced dwelling

Whereas dwelling sale earnings are thought of capital positive factors, there is a $250,000 exemption for single filers and $500,000 for married {couples} submitting collectively, assuming you meet certain requirements. One of many foremost guidelines to qualify is you should personal and use the house as a main residence for 2 of the 5 years earlier than the sale.

In case your earnings exceed these exemption thresholds or you do not qualify, there are methods to scale back the tax burden.  

Leslie Beck, an authorized monetary planner and proprietor of Compass Wealth Administration in Rutherford, New Jersey, stated many householders do not understand that property enhancements could be added to the house’s value foundation, or buy value, to scale back capital positive factors. 

Some examples might embrace dwelling additions, patios, landscaping, new programs and extra, according to the IRS. However ongoing repairs and upkeep, akin to portray or fixing leaks, do not depend.

“It is useful to have receipts to doc these enhancements,” stated Thomas Scanlon, a CFP and CPA at Raymond James in Manchester, Connecticut. “If you do not have them, get a duplicate of the allow wanted to do the work.”



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