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$5 million is the new $1 million.
- Million-dollar listings have become commonplace in the US real estate market.
- More than 4% of all homes in the largest US metros are now worth at least $1 million, according to a report by Trulia.
- Homes worth $5 million or more are the new standard of luxury.
For decades, a million-dollar listing heralded true luxury for Americans who could afford it.
Now, more than 4% of all homes across the 100 largest US metros are worth at least $1 million.
That may not sound like much, but it's nearly quadruple the share of million-dollar homes in the housing market 15 years ago, according to a report by Trulia.
In San Francisco, one of the most unaffordable housing markets in the country, homes valued at $1 million or more now make up two-thirds of the housing market - triple the share in 2012.
Rising home prices and increased demand for high-end real estate has effectively raised the threshold of luxury to at least $5 million.
Over the past year, the share of homes in the US valued at $5 million or more increased by nearly 20%, compared to almost 18% for $1 million dollar homes.
But $5 million is only the starting point for luxury living. Among homes valued at $5 million or more, Trulia says the median price is close to $7.4 million and comes with 5,663 square feet of living space on nearly an acre of land.
Most of the country's $5 million-plus listings are concentrated in coastal markets, including California, New England, and Florida, though there are a smattering of high-priced listings across Texas and the South, according to Trulia.
But the rising cost of luxury underscores the severity of wealth inequality that's striking communities across America. While the median home price in the US last year was $282,900, 86% of the biggest US metros had at least one $5 million-plus listing.