COLUMBUS, Ohio (WCMH) — A growing share of U.S. homes are passing the $1 million mark amid high-interest rates and inflation, a new study shows.

The number of $1 million dollar homes more than doubled from 2015 to 2021, according to a study by Today’s Homeowner analyzing Census Bureau data. About 4.2 million homes, 5% of all homes, in the U.S. were valued at $1 million or more in 2021, a steady increase from about 2 million homes, 2.7%, in 2015.

“The U.S. housing market has been incredibly hot over the past several years, with demand significantly outpacing supply when it comes to the number of homes on the market,” the study states. “And despite high-interest rates and inflation more recently, home prices haven’t dropped.”

In Ohio, the percentage of million-dollar homes is 0.8%, the study shows. However, the Buckeye State has 4.2% fewer million-dollar homes than the national average. Compared to the national growth rate of 2.3%, the share of million-dollar homes in Ohio only increased by 0.34% from 2015 to 2021.

Million-dollar homes are most prevalent in California and Hawaii. In California, more than 23% of homes are worth a million dollars or more and in Hawaii, the share of million-dollar homes exceeds 22%, the report shows. In Washington, the percentage is 11% while in Colorado its 7.4% and in New York its 9.2%.

Many of the cities with the highest share of million-dollar homes are in California, the study states. The percentage of million-dollar homes exceeds 70% in three California cities, Pleasanton, Sunnyvale and San Francisco. 

Four additional cities have more than half of homes worth $1 million or more. Fremont, California, has a percentage of 66%, San Jose, California, has 60%, Bellevue, Washington has 60% and Carlsbad, California, has 54%.

The report noted households purchasing a million-dollar home most likely earn upwards of $200,000 annually. Many cities show a significant difference between the proportion of million-dollar homes and the number of households that are able to afford them.

In San Francisco, though 73% of the homes are valued at $1 million or more, less than 42% of households earn $200,000. In an additional 16 cities, the difference between the share of million-dollar homes and the share of households that may be able to afford them exceeds 10%, including 12 California cities, and in Boulder, Miami Beach, Honolulu and New York.

Jennifer Spinelli, founder and CEO of Niche Home Buyer, said in the study she expects the share of million-dollar homes to grow, despite the significant affordability gaps.

“Real estate experts are predicting a large increase in the number of million-dollar homes across the country,” said Spinelli. “The trend is being driven by an influx of wealthy buyers looking to invest in luxury properties and a steady rise in property values in certain areas.”

View the entire study here.