Well, folks, it seems the American Dream has hit a new milestone—or perhaps a stumbling block, depending on your perspective. According to a recent report from Redfin, nearly one in ten U.S. homes is now valued at $1 million or more, marking a record high. That’s up from 7.6% last year and more than double the 4% share before the pandemic. So, should we be celebrating this newfound ‘prosperity,’ or is there more to the story?

Let’s start with the basics. The median sale price nationwide has climbed to a staggering $442,525, a 4% increase from the previous year. For luxury homes—the top 5% of listings—the median price has jumped 9% to a record $1.18 million. Now, on the surface, this might sound like good news. After all, higher home values mean more equity for homeowners, right? But let’s not pop the champagne just yet.

The driving force behind this surge isn’t a booming economy or a sudden increase in high-paying jobs. No, it’s something far less encouraging: a severe shortage of housing inventory. Many homeowners are clinging to their properties, locked into low mortgage rates from years past, unwilling to sell in today’s high-rate environment. This reluctance to sell has kept the number of available homes about 30% below pre-pandemic levels, creating a supply-and-demand imbalance that’s pushing prices through the roof.

Now, if you’re a homeowner looking to sell, this might seem like a golden opportunity. But for prospective buyers, especially first-timers, the landscape is far less rosy. The combination of skyrocketing home prices, increased insurance costs, and elevated mortgage rates has priced many Americans out of the market. Julie Zubiate, a Redfin Premier agent in the Bay Area, notes that many people are either priced out or wary of committing to such high monthly payments. The only ones diving in without hesitation? Tech workers from companies like Google, Apple, and Facebook.

Geographically speaking, California is leading the charge in this million-dollar home boom. In San Francisco and San Jose, about 80% of homes are now valued at $1 million or more. Even traditionally more affordable areas like Anaheim have seen significant increases, with 58.8% of homes now worth over a million dollars, up from 51% last year. Meanwhile, in cities like Detroit, Cleveland, and Pittsburgh, less than 1% of homes have reached the million-dollar mark, highlighting the uneven nature of this trend.

So, what’s the takeaway here? On one hand, rising home values can be seen as a sign of economic strength. On the other, when the median home price is approaching half a million dollars, it’s clear that affordability is becoming a serious issue. The American Dream of homeownership is slipping further out of reach for many, and that’s a reality we can’t afford to ignore.

In the end, it’s essential to look beyond the headline numbers and consider the broader implications. Are we witnessing a healthy appreciation in home values, or are we inflating another housing bubble that’s destined to burst? Only time will tell, but one thing is certain: the current trajectory is unsustainable for the average American family. And that, my friends, is a cause for concern.