The rebalancing of the housing market has been felt the most in areas where affordability is stretched and that includes California and the Inland Empire.

There are currently 464 U.S. cities where the typical home value is $1 million or more and nearly half of those are in California. But, the Inland Empire has only one and it’s Indian Wells in the Coachella Valley.

Zillow found that last year set a record for the most new million-dollar cities amid the supercharged housing demand. Both demand and supply hit the brakes in the second half of 2022 after mortgage rates spiked. Buyers were stretched thin in what they could afford.

California alone has 190 million-dollar cities, more than the next six states combined. But California has also lost 20 million-dollar cities since July, easily more than any other state.

Los Angeles has lost the most million-dollar cities since July, with seven falling below that mark. The New York City metro area has lost six, San Francisco has lost four.

Story Date: March 22, 2023