This is what a $1 million home gets you in LA

Migration from big cities boosts housing prices in smaller markets

Since the COVID-19 pandemic, more people are moving out of big cities, driving up housing prices in smaller markets like Boise.

LOS ANGELES - A new analysis reveals the sales of $1 million homes more than doubled over the past three years and are at record highs, but buyers are getting less than they used to, according to Zillow.

The real estate marketplace reports that homes that sold near $1 million are almost 400 square feet smaller compared to 2020.

According to Zillow, here's what is typical of a $1 million home in Los Angeles:

Median size of 1,644 square feet (down 544 from spring 2020)
Costs $608 per square foot (third-most in the U.S. and up from $457 in spring 2020)
Has 3 bedrooms and 2 bathrooms
Is 59 years old

By comparison, Zillow provided stats on a typical $1 million home in Riverside:

Median size of 2,820 square feet (down 628 from spring 2020)
Costs $355 per square foot (up from $290 in spring 2020)
Has 4 bedrooms and 3 bathrooms
Is 23 years old

This is all due to shrinkflation (a combination of the words shrink and inflation), which refers to downsizing a product to meet the demands of inflation. That means the size of a product will be reduced, but the sticker price will remain the same. It's often noted when it comes to food. A recent Yelp report cited most of the "shrkinflation-related" complaints were among customers who visited restaurants serving menu items, including hot dogs, hamburgers, and pizza.

Nationally, the typical home in the $1 million range shrank in nearly every major metropolitan area, according to the analysis.

The largest declines were reported in Phoenix — down 1,116 square feet from 2019 to 2022 — and Nashville, where the homes lost 1,019 square feet.

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Meanwhile, floor plans grew in two major metros - in Minneapolis (36 square feet), and in St. Louis (406).

Overall home sales were elevated during the pandemic but have since slowed due to affordability challenges, according to Zillow.

The number of home sales in major metros increased in Portland, Austin, and Boston.

In California, Riverside made the list of where $1 million-plus home sales have risen the most since 2019. Sales rose the least in San Jose and San Francisco.

If you're looking for the best metro to get a home for your money's worth, Zillow said potential homebuyers should take a look at Hartford, Connecticut. There, the lowest price per square foot is listed at $205, followed by Indianapolis, Oklahoma City, Kansas City and Cincinnati.

For more on the analysis, tap or click here.