Rising housing values, particularly in certain markets, mean that there are now more American homes worth over $1 million:

The share of homes valued at more than $1 million has surged more than fourfold since 2002, according to new data from real estate site Trulia, which analyzed the luxury real estate market in the top 100 U.S. metropolitan areas. Across those regions, about 4.3 percent of homes are now worth at least $1 million, compared with about 1 percent in 2002, said Trulia senior economist Cheryl Young…

The share of homes valued below $1 million is “decreasing at a rate we’re surprised by,” Young said. “It was 98.9 percent in 2002, and now it’s 95.7 percent. That is pretty shocking.”

Rising real estate values, tight inventory and a lack of new construction are contributors the surge in million-dollar homes. Yet another factor may be at play: rising income inequality, which has benefited the bank accounts of America’s richest families…

It may explain why the share of homes worth $5 million or more is growing even faster. This segment is what Trulia describes as “the most luxurious homes available.” To be sure, it remains a tiny part of the real estate market, accounting for just 0.28 percent of overall sales. Still, that figure is five times higher than in 2002, Trulia said.

In the abstract, who is opposed to rising housing values and the benefits that confers to homeowners and communities? Yet, the flip side of rising housing values is that more homes might then be out of reach for average or even well-off residents.

Three related thoughts:

1. While those fighting for more affordable housing have discussed this flip side for decades, I wonder at what point it may be viewed as immoral to live in an expensive dwelling.
2. Expensive homes do not usually exist in isolation. For example, it would be very unusual to drive down a street of low-value homes and all of the sudden see a large expensive home. Expensive homes are often part of larger projects – buildings or developments or subdivisions – that give way to a whole wealthier lifestyle that include expensive homes. In other words, this is not just about the value of individual homes: it is about clusters of homes and locations that help elevate some housing values.
3. Related to both #1 and #2, can we expect some residents to underestimate their housing values or sell at lower price points than they could get?