Austin Business Journal writes, "Home prices have soared since the pandemic, and that's led to a surge in ZIP codes where prices are regularly eclipsing the $1 million mark.
Typical home value topped $1 million in 913 ZIP codes across America this fall, with many of those markets seeing home values more than double compared to pre-pandemic figures, according to an analysis of data from Zillow Inc. by The Business Journals.
The analysis found typical home prices in 547 ZIP codes crossed the $1,000,000 threshold since 2019 — including 37 that crossed the threshold between 2024 and 2025.
The gains have been lucrative for sellers, but they also reflect what has become a historic housing-affordability crisis in markets across the country.
Among the 10 most-expensive housing markets by ZIP code as of Sept. 30, the average post-pandemic growth rate was 61.2%, while year-over-year growth was close to 2%, and quarter-over-quarter gains came in at just under 1%.
Iconic communities dominated the top of the list of ZIP codes with the highest median home values, including ZIPs in New York City, Miami and Los Angeles. Six of the top 10 ZIP codes were in California, and 412 of the 913 ZIP codes with a median home value of $1 million or more were located in the state.
Of those 412 California ZIP codes that made the list, 156 are in the Los Angeles area, and 110 are in San Francisco.
While some California ZIP codes saw explosive growth, the overall luxury market in the state's major metros performed anything but uniformly.
“In California, the story is nuanced,” said Orphe Divounguy, senior economist at Zillow. “In San Diego, luxury home values were flat on a year-over-year basis, but [values] were still up a solid 2.8% in the Los Angeles metropolitan area and a moderate 1.4% in the San Francisco region.”
As prospective buyers grapple with economic uncertainty, overall residential real estate inventory has ticked up in recent months, and sale prices have subsequently cooled. However, luxury markets — identified by The Business Journals as ZIP codes with an average home price of at least $1.5 million — tend to be more insulated.
In a separate analysis by The Business Journals of the country’s hottest housing markets, Q3 sales prices were up only 2% compared to Q2. Year-over-year, that change was 7%, and compared to 2019, prices have grown 59%, according to research by The Business Journals.
The overall residential real estate market experienced a third-quarter loss of 0.9% in sales prices compared to the second quarter. Sales prices within the broader market were up an average of 2.3% year-over-year and up 56.3% from pre-pandemic levels.
Where luxury prices have surged
While California housing markets often rank among the nation's most expensive, East Coast hotspots like The Hamptons also have seen a bump in prices. In ZIP code 11962 in Sagaponack, New York, the median home value has increased 54% compared to 2019, according to The Business Journals' analysis of Zillow data. The median home value for that ZIP code climbed from $4.1 million to $6.3 during that period.
In total, 128 ZIP codes in New York state reported a median home value of more than $1 million.
The growth among New York markets can be further seen in an assessment of sales activity. For example, East Quogue 11942, part of a tiny hamlet that's adjacent to Southampton, saw 109.3% sales-price growth compared to 2019, according to The Business Journals' hottest housing markets research. Third-quarter home-sale prices in that ZIP code averaged $1.5 million. That number, however, pales in comparison to some of The Hamptons' more-palatial properties, which have exceeded $100 million in the past.
Real estate insiders note some former New Yorkers who decamped to Florida during the pandemic have begun returning north to snap up vacation homes and escape the harsh temperatures of Florida’s summer season, especially now that interest rates have eased.
“In general, housing investments are positively correlated with GDP and tend to lead the rest of the economy," Divounguy said. "Although activity can increase or fall rapidly, prices in the luxury market tend to be less volatile than the rest of the housing market. This is because luxury homeowners are rarely forced to sell. They have options and will tend to sit out the market when demand is somewhat weaker.”
Price growth continues in pockets of pandemic-era in-migration
Out West, smaller, recreation-friendly communities have seen big gains in price, especially in Arizona and Utah. And despite a pandemic-era construction boom that flooded Florida’s general residential market, a few urban areas also have seen steady price gains in the luxury sector.
According to the The Business Journals’ analysis of the country’s hottest housing markets, ZIP code 33701 in St. Petersburg, Florida, posted a gain of 203.2% compared to 2019, with its average sale price climbing from $499,438 to $1.5 million. Year-over-year growth was 66%, while quarter-over-quarter was a 58.8% increase.
Fellow Florida ZIP code 33160, located in North Miami Beach, experienced an average sale-price gain of 197.7% compared to pre-pandemic levels. Homes in that community sold for an average of $531,325 in 2019 but grew to $1.6 million during the same period in 2025.
Historically, ZIP codes that have experienced the most substantial growth at the top end of the market have been clustered near the nation’s largest metros or adjacent to tech hubs.
But with the rise of remote work — which became all but ubiquitous for the knowledge sector during the pandemic — many high-net-worth individuals and their families fled expensive coastal metros for sunny climates that offered outdoor recreation and better work-life balance."
Source: Austin Business Journal
Written by: Joanne Drilling
Published: December 10, 2025
Posted by Grossman & Jones Group on
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