California housing crisis: Once-modest towns are becoming 'million-dollar cities'

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After adding 12 this year, California accounts for 210 of the country's 550 cities where the typical home value is more than $1 million, according to an analysis by Zillow.

When you think of towns with $1-million-plus homes, tony places such as Beverly Hills, San Marino, Newport Beach and Palos Verdes Estates might come to mind. But as California housing values keep rising, some cities that until recently had reputations for working-class modesty are joining the list of communities with median home values more than $1 million.

California actually recorded 15 cities that vaulted into the seven-figure range, but three cities that had previously been on the list had home values drop below $1 million: Tomales, Carnelian Bay and Vernalis. Five cities that were already on the million-dollar cities list had bigger growth — and all were in Southern California — La Cañada Flintridge, Irvine, Laguna Niguel, Laguna Hills and Poway, where growth ranged from 12% to 17%.

 

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