The 10 Most Expensive Housing Markets in the USA

Housing prices vary widely across the United States, with some cities topping the charts for their high property values. These markets attract buyers and investors due to their economic opportunities, unique lifestyles, and strong demand for housing. Here are the 10 most expensive housing markets in the USA, what makes them so costly, and the factors that drive up prices. Whether you’re looking to buy, invest, or simply curious, you will find some insights into the nation’s most high-value real estate markets here.

What Defines an Expensive Housing Market?

Before we examine some of the country's most expensive housing markets, you should first understand the factors that contribute to a housing market being classified as "expensive." For example, every housing market in this guide has exceedingly high property values. You can check property values online to get a clear understanding of current trends. Depending on the market, there are several reasons for the elevated property values, which include everything from the limited availability of land and homes to the high demand for housing. 

Many of these locations also have high costs of living. For example, the cost of living in NYC is 146% higher than the national average. In San Francisco, it's over 82% higher than the national average. 

Both these markets are consistently more expensive than others. There are numerous reasons why this is the case. In NYC, the housing market is expensive because of inelastic demand and limited supply. The strict zoning restrictions for the city keep housing prices high while also preventing the construction of enough small apartments. 

Even though the markets in this guide are more expensive than others, they continue to appeal to investors and buyers because of the amenities that residents can access. People who live in NYC have ample access to job opportunities, art museums, historic landmarks, entertainment options, public parks, and restaurants.

The Hottest Housing Markets in 2024: A Look at Last Year's Statistics

From New York City to Bethesda, MD, the top-performing housing markets in 2024 all display significant price growth, high sales volume, and increasing demand. 

1. New York, NY

In NYC, the average home sale price at the end of October 2024 was right around $775,000. Since that time, property values increased by 3.9% to $805,000. In Manhattan alone, 816 homes were sold in October 2024, which marks a 1.6% year-over-year increase. While the cost of living in NYC is higher than most other cities in the country, it's still an appealing place for investors and buyers alike.

2. San Jose, CA

San Jose has some of the highest housing costs in the country. The average home price is over $1.4 million, which represents a more than 200% increase over the average in the U.S. The reason for the high costs is the tech boom in the city, which plays host to major companies like IBM, Qualcomm, and Lockheed Martin.

Despite the high costs, the San Jose housing market has grown considerably over the past five years. The median sale price for a home has increased by 4.6% since October 2023. A total of 528 homes were sold in October 2024, an 18.7% year-over-year increase. Property values should rise as long as buyer demand continues to be high.

Before making a purchase, be sure to check property history records in California to better understand the neighborhood and investment potential.

3. San Francisco, CA

San Francisco has been among the most overvalued housing markets for years. Many of the city’s residents are high-paid tech workers. The median sale price for a home in San Francisco is around $1.5 million, which is a 7.6% increase year over year. 

In October 2024, 484 homes were sold, which is an 18.6% increase from the same month in 2023. Even though this city is overvalued for many people, the median household income is close to $140,000, which is nearly double that of the national average.

4. Honolulu, HI

In Honolulu, the median home price was $688,000 in October 2024, which marks a 7.5% increase from the previous year. Around 278 homes were sold in October, which is a sharp month-over-month increase of 16.3%. 

Honolulu residents pay some of the country's highest property taxes, which means you need to have a high income to live there. However, the city itself continues to experience high demand among investors and renters, which is why housing prices have increased consistently over the past five years. 

You can calculate property taxes in all states using online tools that factor in local tax rates and property values, helping you better understand the tax burden in different regions.

5. Washington, D.C.

In Washington, D.C., the median sale price for a standard single-family home is $655,000. While this represents a small decrease of 2.2% over the previous year, all other facets of the housing market are experiencing growth. 

Because of the high demand for housing, analysts expect real estate prices to increase considerably over the next year. In October, 567 homes were sold, which is a year-over-year increase of 14.1%. Groceries and utilities are more than 5% higher than the national average. The people who live or buy real estate in Washington, D.C. face a high cost of living.

6. Los Angeles, CA

At $1.04 million, Los Angeles has some of the highest housing prices in the country. Despite the elevated housing values and the high cost of living, there's still great demand for real estate throughout Los Angeles. While the median sale price has increased by 4% over the past year, the number of homes sold in October was nearly 19% higher than in October 2023.

7. Boston, MA

Boston is a highly competitive housing market with a median sale price of around $832,000, which is relatively unchanged from the previous year. Over 375 homes were sold in October, which is a year-over-year increase of 10.9%. 

Homes only remain on the market for an average of 23 days. Boston is appealing because of its vast collection of historic sites, tech companies, universities, and hospitals. However, it won't get any cheaper for buyers and investors.

To ensure you're making an informed decision, it’s recommended to review property history records in Massachusetts to understand the neighborhood and potential value.

8. San Diego, CA

San Diego is one of the hottest housing markets in 2024. The median sale price for October 2024 was $950,000, which is nearly 4% higher than the previous year. Over 850 homes were sold last month, which reflects a 25% year-over-year increase. 

Homes only remain on the market for around 27 days, which is nine days quicker than the same time last year. Since San Diego offers plenty of biking, sailing, surfing, and golfing destinations, it's an attractive option for buyers, renters, and investors.

9. Seattle, WA

Seattle is home to a tech scene that is constantly growing. Amazon.com and Microsoft have headquarters in the city. While the median household income of $115,000 helps people get by, the $877,000 sale price for homes is difficult to afford. This price has increased by nearly 8% over the past year. 

Around 840 homes were sold during October, representing a 31.7% increase from the same month in 2023. Homes only remain on the market for around 13 days before being sold. Despite the high cost of living and the increasing home values, Seattle is among the hottest housing markets in the country.

10. Bethesda, MD

Bethesda is a smaller city in Maryland with some of the highest housing costs in the U.S. The average price of a home is $1.14 million in this D.C. suburb. It hosts the Walter Reed National Military Medical Center and the National Institutes of Health. Since October 2023, the median sale price has increased by 3.1%. Despite their high cost, homes only remain on the market for 13 days.

Why These Markets Are So Expensive

There are many reasons why certain markets have high housing costs. In places like Washington, D.C. and NYC, you can always count on cities with a certain population density and economic growth. Since many companies have headquarters in NYC, the city typically has a strong job market. That's the case for many of the markets in this guide. 

A certain lifestyle appeal pushes many people to move to cities with a high cost of living. These factors come together to create lasting value that makes these markets attractive. This consistent level of appeal means that these locations will always be costly for investors and buyers. Despite their appeal, they are some of the most overpriced housing markets in the country. 

The Best Housing Markets in the USA

Based on factors like affordability, job availability, quality of life, and growth potential, the following locations represent the best housing markets in the country:

• Charlotte, NC
• Nashville, TN
• Raleigh, NC
• Columbus, OH
• Dallas, TX
• Phoenix, AZ
• Denver, CO
• Orlando, FL
• Birmingham, AL
• Tampa, FL

If you're seeking stable investment opportunities, these cities boast increasing housing prices, strong job markets, and population growth. While the property values can be high in some cities, they are more balanced markets than places like Honolulu or San Jose. 

When searching for the right places to invest, consider cities with high rental demand and low tenant default rates. The profitability of an investment property will also be affected by job growth, population growth, and the median home price. These are some of the best housing markets in the US, which is why they should be at the top of your list when you're searching for new investment opportunities.