Making a Millionaire

3 Texas cities crack Zillow's list of homes worth a million or more

3 Texas cities crack Zillow's list of homes worth a million or more

Austin house home 101 Pascal Lane Weslake Rob Roy neighborhood front exterior
Lost Creek is close, but not quite at $1 million. Photo courtesy of Concierge Auctions

Cities in and around Austin are definitely growing in size, but how about value? While it may feel like home prices are continually surging, they aren't quite at the level of many others in the U.S. that are known as "million-dollar cities."

Zillow reports that there are currently 218 of these high-dollar neighborhoods in the nation, cities with a typical home value of $1 million or more. Within those, only three are located in Texas.

All are in the Dallas-Fort Worth metro area, led by Highland Park ($1,601,700), then Westlake ($1,599,800), and University Park ($1,387,900).

Two others in Texas come pretty close to the $1 million mark: Bellaire ($872,500) in Houston and Lost Creek ($801,100) in Austin.

Overall, there are three more cities on the list than there were at the end of 2018, and 74 more than there were five years ago. The net addition of three $1 million cities is easily the lowest in recent years, most likely a reflection of the slower market last year. This is also the first year since 2016 in which any cities fell off the $1 million list.

"Odd though it may seem, it's the cities at the top that are 'struggling' the most during this return to normalcy in the market," says Skylar Olsen, Zillow's director of economic research. "More than just slower growth, home values good and truly fell in many of these hubs of luxury, a sign that the excessive home value appreciation of the past several years drove prices too high — even beyond the reach of those who could afford almost anything almost anywhere else."

Unsurprisingly, cities in the San Francisco, New York, and Los Angeles metros dominate the list. More than half of all $1 million cities come from just these three metros: 46 in San Francisco, 43 in New York, and 30 in Los Angeles. Close behind are Boston (10), San Jose (10), and Miami (7) with the next-most.