Median U.S. real estate values gain ground

Percentage of million-dollar homes nearly doubles since 2000
Inman News
As median home values across the nation continue to rise, so has the proportion of homes valued at $1 million or more, according to a new analysis of American Community Survey (ACS) data released Tuesday by the U.S. Census Bureau. The national median home value in 2003 was about $140,000, up nearly 16 percent in the last three years, while the percentage of "million-dollar homes" nearly doubled (from 0.5 percent to 1 percent).

California led the nation with the highest median home value ($316,600), followed closely by Hawaii ($302,300), Massachusetts ($300,800) and the District of Columbia ($246,300). In contrast, some of the states with the lowest median home values were West Virginia ($78,200), North Dakota ($78,600), Mississippi ($78,700) and Arkansas ($79,902).

Since 2000, Massachusetts (50 percent), California (46 percent), the District of Columbia (44 percent), New Hampshire (41 percent) and Rhode Island (39 percent) experienced the largest increases in median housing values.

California also had the highest percentage of million-dollar homes (4.1 percent) — almost 1-in-25. High concentrations of million-dollar homes were also found in Connecticut (3.3 percent), the District of Columbia (3.3 percent), Massachusetts (2.2 percent) and New York (2.1 percent).

Of the 231 counties with populations of 250,000 or more included in the ACS, San Mateo ($644,300), San Francisco ($607,000), Santa Clara ($553,500) and Santa Cruz ($553,000) — all in California — had some of the highest median home values. Among counties with the least expensive homes were Hidalgo, Texas ($54,000); Jefferson, Ark. ($61,900); and Cameron, Texas ($62,800).

San Francisco ($607,000) had the most expensive median home values among the 69 large cities with populations of 250,000 or more in 2003. Also among the highest were three other cities in California — San Jose ($481,000); San Diego ($376,800); and Oakland ($370,000).

Other highlights:

• Among the counties with the highest median housing values, eight were in California.
• Among states with the lowest median housing values, seven were in the South: West Virginia ($78,201); Mississippi ($78,681); Arkansas ($79,902); Oklahoma ($83,525); Alabama ($87,203); Louisiana ($90,168); Kentucky ($92,599); and Texas ($94,515).
• Six Northeastern states were among those with the highest percent increase in housing values.
• Florida, one of the fastest-growing states in the nation, was also one of the states with the largest percent increases in housing values.

The American Community Survey data are based on responses from a sample of households across the nation. The estimates and rankings may vary from the actual values because of sampling or nonsampling variations. The statistical statements have undergone testing, and comparisons are significant at the 90 percent confidence level.