These 5 metros have the most million-dollar homes: If you’re selling, here’s what to know about the tax consequences

Million-dollar homes are rare in the US, but you are more likely to find them on the coast.

The country's 50 biggest metropolitan areas were ranked by the share of owner occupied properties worth $1 million or more.

In the 50 biggest metros, the average share of million-dollar homes is nearly 5%. In San Jose, California, 52.89% of the population are worth $1 million or more.

Personal Finance has more on how to sidestep a tax bomb when selling your home.

Los Angeles, San Diego, New York, Seattle, Boston, Washington, Miami and Denver have the highest share of million dollar properties.

Cleveland and Pittsburgh had less than 1% of owner-occupied properties with million-dollar homes.

1. San Jose, California: 52.89%
2. San Francisco: 40.37%
3. Los Angeles: 18.55%
4. San Diego: 13.52%
5. New York: 10.53%

1. Buffalo, New York: 0.56%
2. Cleveland: 0.59%
3. Pittsburgh: 0.67%
4. Columbus, Ohio: 0.73%
5. Cincinnati: 0.78%

Concerns about housing affordability have grown as mortgage rates increase.

The median home listing price in June was a record $450,000, up more than 15% from a year ago. Many Americans have less buying power than they did a year ago, with 30-year fixed-rate mortgage rates hovering around 6 percent for so-called conforming loans.

The rising interest rates have cost home buyers on a budget of $3,500 a month $165,000 in spending power since the end of 2021, according to a report.

Home sale profits are considered capital gains and there is a $250,000 exemption for single filers and $500,000 for married couples. You need to own and use the home as a primary residence for two of the five years before the sale to be eligible.

There are ways to reduce the tax burden if you don't qualify for an exemption.

Many homeowners don't know that property improvements can be added to the home's cost basis to reduce capital gains

Home additions, patios, landscaping, new systems and more can be examples. Repairs such as painting or fixing leaks are not counted.

Thomas Scanlon said that it was helpful to have receipts for the improvements. Get a copy of the permit you need to do the work if you don't have them.