They just don’t make them like they used to be. At least, not with 1 million dollars.
Million-dollar homes have shrunk since spring 2020, according to a New analysis from Zillow. The average home selling for or near $1 million in 2022 is nearly 400 square feet smaller than the average two years ago. Homes “peaked” at 3,021 square feet in 2020 and are now averaging 2,624 square feet, Zillow Find.
That’s true nationally, with the largest square footage falling in Phoenix and Nashville. The median multimillion-dollar home lost 1,116 square feet and 1,019 square feet in those metro areas, between 2019 and 2022, respectively.
Since 2019, sales of exceptional $1 million homes have more than doubled, according to Zillow. That follows a trend of rising prices nationally amid stiff competition since the start of the COVID-19 pandemic: The median cost of a home in the US in July was $412,198, compared with 288,388 USD in January 2020, according to Redfin.
Anushna Prakash, economic data analyst at Zillow, said: “Sales of expensive homes skyrocketed while buyers in hot competition embraced smaller layouts.
Zillow said that this is a example of “deflation”, or when the size or quality of something decreases while the price remains the same or increases. It’s a repetition of inflationary this has been difficult for the United States and many other countries over the past year.
The homes that sell for $1 million are not only smaller than they used to be, but they’re also older and have fewer bathrooms. According to Zillow, before the pandemic, the size of homes costing about $1 million was increasing.
“Even wealthy homebuyers are not immune to the impact of the hot housing market, as they have lost space and are paying for homes that are older than they were three years ago,” the Zillow report said. five”.
That said, things are starting to change. Now that interest rates have gone up and there’s still not much inventory, competition is starting to slow down.
“Buyers who have regained some bargaining power may find it easier to strike a deal for a larger home with more available rooms in the third quarter,” the report said.
And there are still relative deals to be had: in St. Louis and Minneapolis, $1 million will buy you more land than a few years ago.
Register Fortune feature email list so you don’t miss our biggest features, exclusive interviews and surveys.
