Last year, Pennsylvania didn’t have any communities where the typical home was worth $1 million or more.
This year, it has two — both in the Philadelphia area on the Main Line, according to an analysis Zillow published last week.
Gladwyne in Montgomery County and Villanova in Montgomery and Delaware Counties made Zillow’s list of places where the typical home was worth $1 million or more in February. Zillow calculated the average value of the middle third of homes in the region.
This year, the United States has a record number of what Zillow calls “million-dollar” communities ― 550, up from 491 a year ago. A lack of homes on the market and continuing buyer demand have driven up property values. The typical U.S. home is worth 4% more now than a year ago, according to Zillow.
New Jersey has the third-most “million-dollar” communities — 49, behind California and New York. Since last year, New Jersey has gained the most of these places out of any state. Its 14 new “million-dollar” communities are all in North Jersey, in the metro area that includes New York, Newark, and Jersey City. Its recurring “million-dollar” communities in South Jersey are Shore towns.
The spring real estate market is in full swing, and more home buyers are jumping in. “Competition will stay fierce, especially for the most attractive and well-priced homes,” Anushna Prakash, an economic research data scientist at Zillow, said in a statement.
And if mortgage rates drop this year, Prakash said, “we may see a surge in million-dollar cities as even more buyers jump in and drive prices higher.”
The Main Line effect
On the Main Line, Villanova has about 11,300 people within its zip code, according to census figures, and is dominated by the university. Gladwyne, while not on the train line, is considered a Main Line enclave of Lower Merion Township with about 4,100 people in its zip code.
The median household income in both communities is “$250,000+,” which is the Census Bureau’s highest income tier.
According to Zillow, Villanova’s typical home value in February was $1.3 million and Gladwyne’s was $1.37 million.
Lisa Ciccotelli of Berkshire Hathaway Haverford has seen continued interest from home buyers who want to be on or near the Main Line in general. People are drawn there for highly rated school districts and jobs in medical and education fields, she said. “We always have more people who want to come” to the Main Line, and homeowners don’t want to leave, she said. That creates a home supply imbalance that drives up prices.
‘Million-dollar’ states
The “million-dollar” communities in South Jersey are all at the Shore and haven’t changed since last year.
Typical home values in Longport in Atlantic County; and Strathmere, Cape May Point; and Sea Isle City in Cape May County, ranged between $1.2 million and $1.4 million in February. The typical home in Stone Harbor was worth about $2.3 million and in Avalon was worth about $2.5 million.
The state with the most “million-dollar” communities is California, which has 210, up from 198 last year and more than the next five states put together.
New York has the second-highest number at 66. It gained 12 from last year.
Delaware, on the other hand, has one fewer “million-dollar” community than it did last year. The typical home value in Dewey Beach slipped from almost $1.1 million last year to just above $930,000. South Bethany remains on the “million-dollar” list, with a typical home value of just over $1.1 million.
