The percentage of Americans living in homes worth at least $1 million is increasing, according to a new report from the real estate web site Redfin.

About 8% of U.S. homes are now worth seven figures, as home prices continue their upward climb. In July, the median sale price of a house increased 3% — the largest jump since November.

What You Need To Know

  • The percentage of U.S. homes worth at least $1 million is now 8%

  • Prior to the pandemic, just 4% of U.S. homes were worth seven figures

  • Bridgeport, Conn., saw the fastest growth in million-dollar homes over the past year

  • Seattle saw the largest decline

With mortgage rates near 7% discouraging many sellers with lower interest rates from selling, the inventory of homes for sale has fallen. That’s forcing home buyers to compete for the few homes that are available and driving up prices.

“The supply shortage is making many listings feel hot,” Redfin Economic Research Lead Chen Zhao said in a statement. “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.”

The percentage of homes worth at least $1 million has doubled over the past four years. Prior to the pandemic, when record-low mortgage rates and remote work prompted a home-buying frenzy, 4% of U.S. homes were worth seven figures.

Large metro areas along the East Coast are gaining million-dollar homes the fastest. More than a quarter of the homes in Bridgeport, Conn., are worth at least $1 million — up from 23.1% a year earlier. Boston and Newark, N.J., round out the top three cities, according to Redfin’s analysis.

The share of seven-figure homes is falling fastest in West Coast cities, led by Seattle, which saw the largest decline in million-dollar homes from 39.3% last year to 33% in July. Oakland, Oxnard, Los Angeles, San Diego, San Jose, San Francisco and Anaheim also saw their shares of million-dollar houses fall.

“Rising mortgage rates and the faltering tech economy deterred homebuyers in many of those places over the last year,” Redfin reported, “though they are now starting to bounce back as buyers get used to elevated rates and the economy smooths out.”

Still, California has the highest share of homes worth at least $1 million in the country by far. In San Francisco, 81.2% of homes are worth at least $1 million, followed by San Jose at 79.6%.

Cities that have yet to join the million-dollar club include Omaha, Neb.; Dayton, Ohio; McAllen, Texas; El Paso, Texas; Akron, Ohio; Detroit; Buffalo, N.Y.; Elgin, Ill.; and Rochester, N.Y. Fewer than .5% of homes in those metro areas are worth seven figures.