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# A wealth of millionaires in million-dollar homes
- URL: https://www.smdp.com/a-wealth-of-millionaires-in-million-dollar-homes/
- Published: 2006-11-01T16:00:00.000Z
- Updated: 2026-10-25T01:12:56.000Z
- Author: Guest Author
- Tags: Opinion, Santa Monica, #archive-import

*ALL IN A ZIP DAYS ON THE MARKET*

*By JODI SUMMERS*

Last week, we talked about the wealthiest cities in the United States. As you might expect with Beverly Hills at number one and Santa Monica at number two, Los Angeles County has been confirmed as the wealthiest county in the United States, according to a recent survey by TNS Financial Services. And, as you might expect also, four of the nation’s richest counties are in California — L.A., Orange, San Diego and Santa Clara.

The survey studied a national sample that included more than 1,800 households with a net worth of $500,000 or more, excluding primary residence. Winners of the top-10 richest counties in the country are — Los Angeles County, with 262,800 millionaire households (23 percent of the state’s wealth-iest households). Cook County, Ill, came in second with 167,873 millionaire households, followed by Orange County (113,299 households); Maricopa County, Ariz. (106,210 households); San Diego County (100,030 households); Harris County, Texas (96,593 households); Nassau County, N.Y. (78,816 households); Santa Clara County, (75,371 households); Palm Beach County, Fla. (69,871 households); and Middlesex County, Mass. (67,552 households).

A total of 48,666 Golden State homes sold for a million dollars or more last year, according to DataQuick Information Systems. That was up 47 percent from 33,107 in 2004\. The total was 19,080 in 2003 and 13,871 in 2002\. Statewide, there were 310 sales for more than $5 million last year, 327 sales were in the $4 million to $5 million range, 990 in the $3 million range, 3,937 sales in the $2 million range, and the rest between $1 million and $2 million.

“In reality, the prestige market remained pretty stable from 2004 to 2005\. But because of the increase in home values across the board, more sales prices crossed the million-dollar threshold. In other words, homes that would have sold for $900,000 in 2004, sold for more than a million last year,” said Marshall Prentice, DataQuick president.

And, according to the MLS, in Santa Monica, 221 single family homes sold for a million dollars in 2005.

Our six-year real estate boom has made many multiple properties millionaires. While SoCal has been the extreme, with real estate assets escalating nationally, so has the number of U.S. millionaires. In 2005, the number of households with more than $1 million in net worth (excluding primary residence) rose for the third consecutive year. The TNS study attributes the increase to “long-term wealth accumulation,” as opposed to new wealth creation or getting rich on real estate investments.

“With the increasing number of millionaire households comes an increasing confidence, as over three-quarters of high-net worth households feel they will be financially prepared for retirement,” stated Jeanette Luhr, manager of the TNS study.

Real estate continues to be an investment portfolio staple, but the study proves it is not the sole cause of wealth. Forty-six percent of millionaire households own investment real estate such as a second home, third home, rental properties and undeveloped land. Thirty-four percent have a first mortgage on these residences and 25 percent have second mortgages on these additional residences.

The study concluded that the mean net worth (excluding the primary residence) for these millionaire households is $2.16 million; mean investable assets — $1.44 million. The median age for the head of the household is 58 years old, and almost 45 percent are retired.

“These millionaire households understand that calculated risks are still a necessity within their portfolio design,” noticed Luhr, “however, over 50 percent have become much more conservative in their investment approach over the past year.”

In the Golden State, the median-sized million-dollar home in 2005 was 2,480 square feet, with four bedrooms and three bathrooms, according to DataQuick. If you sold a home in California last year, there was a one in 13 chance that it went for at least $1 million, up from a one in 20 chance in 2004.

The real news is that $1 million homes are becoming more commonplace in areas not known for lifestyles of the rich and famous.

“A million dollars isn’t what it used to be, and a millionaire looks like the average Joe on the streets,” noted Santa Monica multi-unit owner Nancy. “I work as a teacher, so I’m kind of thankful for that. I’m also thankful I bought property in Santa Monica 25 years ago.”

The million-dollar home trend is pushing even farther inland, into non-resort communities in Riverside and San Bernardino counties. Several new million-dollar home markets emerged there last year, thanks to sales of newly built large homes on big lots.

You used to be able to spot millionaires — they lived in places like Beverly Hills, Malibu, Santa Barbara — now they’re everywhere. DataQuick notes that in the Glassell Park, 18 homes sold for $1 million or more in 2005\. There was just one in 2004\. In Baldwin Hills, the number of seven-figure homes rose to 23 from nine.

“The million-dollar cycle hasn’t completely played itself out in the more affordable areas, which include the Inland Empire,” said John Karevoll, DataQuick’s chief analyst. “There is more to happen there.”

Even condominiums in California are breaching the $1 million mark. There were 2,902 condo sales in the million-dollar category last year, up 73 percent from the year before, DataQuick said. Most were sold in West Los Angeles, San Diego and San Francisco. The MLS confirms that Santa Monica had 87 million-plus condos in 2005\. The approximate year-to-date figure is a healthy 105.

Jodi Summers is Director of the Investment Division at Boardwalk Realty. She (310) 309-4219 or Visit her web sites at www.SoCalInvestmentRealEstate.com or www.santamonicalandmarks.com.

*Originally published in the Santa Monica Daily Press print edition on November 1, 2006.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/110106.pdf?ref=smdp.com)