The 14 Most Expensive Cities To Buy A House In The U.S.

One thing made evident by a recent ranking of most expensive cities to live, from Real Estate News, is that many high earners are living paycheck to paycheck due to the cost of housing. According to Self, the average U.S. household spends 25.8% of their income on housing costs, based on a total annual income average of $94,003. That's $24,298 per year, or $2,025 per month. On average, that's equal to 33.2% of all household expenses. This includes the cost of a mortgage, property taxes, insurance premiums, and utilities. It should be obvious that factors like a lower or higher income, or the cost of housing in a particular region, will impact that financial burden differently. Where the latter is concerned, most homeowners carry housing expenses under 40% which, if you take the advice of most financial advisors, is still well over the 30% rule of maximum monthly income that should go into housing.

Since knowledge is power, it's best to have an idea of what living in a particular place could cost you before making the decision to live there. Although this is important information for everyone to have, this should be of particular concern for retirees on limited incomes.

With a population of 194,224 people, Providence isn't the most populous city in the U.S., but that might be because less people can afford to live here. As per Realtor.com, the median sold home price of $420,000 is neither the most expensive place in the country nor anywhere near the least. According to the Federal Reserve Bank of St. Louis, as of Apr 23, 2025, the median sales price of a home in the U.S. was $416,900. So Providence, while not the most expensive city to buy a home, is still well above the national median, and is nowhere near the most affordable place in the U.S.

As per the Mortgage Bankers Association, the average monthly mortgage payment in the U.S. for March 2025 was $2,173. According to data provided by the Council for Community and Economic Research (C2ER) via Houzeo, the average monthly mortgage payment in Rhode Island was just over $2,379. Although urban amenities like higher education, art and culture, and New England beaches may justify the expense, Rhode Island is also one of five states with the highest electricity bills in America.

For all the sunshine and beaches to be found in Miami, it's one of several Florida cities where buying a house will cost you. The state has been considered a retirement haven for so many Americans that retiring in Florida has become somewhat cliche. However, even that may be changing according to "Shark Tank" celebrity Barbara Corcoran — Barbara Corcoran warns against buying real estate in this state. Although the average monthly mortgage payment for the state of Florida is roughly around $2312 per month, the median monthly mortgage payment in Miami — assuming a 20% downpayment — is $2,525. That's higher than the state average, but also over $300 above the national average of $2,173.

A population of 461,672 people with a median income of $64,587 support a housing market where the median price of a home was $525,000 in 2024. This represents a difference of $108,100 above the national median sales price of homes in the U.S.

The influence of famous author and hometown hero, John Steinbeck, is all over this city of 164,996 people, found on the names of festivals and institutions including libraries and museums. While not a million dollar city, it's just over halfway there with a median home price of $529,926. According to the Legislative Analyst's Office for The California Legislature, homes in Monterey County — where Salinas is located — come with an average monthly mortgage payment of $4,654. Compared to the national median mortgage of $2,173 per month, you would end up paying over twice as much as most other cities in the U.S. in Salinas. Mathematically speaking, 30% of a financially prudent median household income of $87,298 would put you at just over $26,000 in safe spending for housing. At $4,654, that's an annual mortgage expense of $55,848, which doesn't even include insurance, maintenance, or utilities.

For retirees, it's not much better, and moving to a suburb a few hours away won't make much difference either. For instance, this little known Los Angeles suburb is considered one of America's most expensive retirement communities. 

Sacramento is another relatively young city, with a median age of 37 years old representing a population of 573,322 people. Households with a median income of $81,757 are high earners, but again, what they earn relative to what housing costs highlights an affordability problem when applying the 30% rule. Based on September 2024 housing data courtesy of Realtor.com and rate averages researched by Zillow Mortgage API via Investopedia, the average monthly mortgage payment in Sacramento is $3,047 per month on an average 30-year mortgage at a rate of %6.00. The median home sale price in Sacramento is $635,000, in one of those states that no one should retire in because of how much it costs to live there. 

This also assumes a 20% downpayment, which looking at the median home price, would fall somewhere around $127,000. These numbers beat both the national median sale price of homes, and the national median mortgage payment, by significant margins.  

It should come as no surprise to anyone paying attention to real estate that New York City would make this list, with a cost of living so high it's practically become part of the city's brand. With the saying "if you can make it here, you can make it anywhere," the city has still managed to attract a population of over 8.8 million people, many of whom are undoubtedly struggling to make it in a city where the median price of a home is $834,096. The average mortgage payment in New York City is $4,388 per month in a city where the median household income is $87,981 per year. Throw in a New York law that could start costing residents a lot more money, and a median home price well above the national average, and you have a recipe for financial struggle.

If you don't make enough money to live comfortably in New York City but still want to enjoy some elements of urban culture, consider small towns in New York that won't drain your bank account. For example, one of the friendliest riverside towns in New York has a below average cost of living, and will keep you busy with outdoor activities, but with a slower lifestyle.

Boston is a Millennial city with a population of 673,264 people and a median age of 35 years old. Institutions, sports teams, and investment in top-tier medicine and technology have helped make Boston one of a few states with the best economies in 2024. It's also helped make Boston one of the most expensive places in the U.S. to buy a house, with the average price of a house approaching $839,900 in 2024. With an assumed 20% down payment, your average mortgage would be around $4,094 per month in the state of Massachusetts, where the average mortgage payment is $4745 per month. While this is better than the state average by close to $700, it's still more than twice the national median for mortgages in the U.S.

A median household income of $95,674 helps offset the costs of housing, but doesn't cover the 30% of household income that should go into $49,128 in mortgage housing costs. The average monthly mortgage payment with a 20% down payment equates to over 51% of the median household income in Boston. 

Seattle has 773,497 people witha median age of 37 years old. The median price of homes is rapidly approaching million-dollar real estate valuations at $868,876. That soaring price of housing is also over twice as high as the national median sales price. Along with those challenging housing prices comes equally challenging mortgage payments. In Washington, the average $3,115 per month overtakes the national median by almost $1,000 per month. Although the median household income in the city is $124,473, thinking about the 30% rule for housing would mean that most households in Seattle are spending more on housing than anything else.

Still, the birthplace of grunge has an incredible food scene and a full roster of athletics teams helping to bolster the economy. But as far as affordability is concerned, Washington's biggest draw may be for seniors who have saved enough to live here, as Washington is a state that exempts Social Security income. 

Hawaii's capital of Honolulu is undeniably beautiful, with a lot in the way of natural amenities like sunshine, beaches, and seasonal temperatures fluctuating slightly between 74 degrees Fahrenheit and 78 degrees Fahrenheit, making it a dream destination for living, working, and retirement. That said, a dream is very likely what it should remain, unless you are a particularly high-net-worth individual who laughs in the face of average monthly mortgage payments of around $8,008. That monthly average supports a median home sale price of $869,639, which is more than double the national median of $416,900.

According to the Missouri Economic Research and Information Center, Hawaii had the highest annual average cost of living of any state in 2024, across every metric including food, utilities, transportation, healthcare, and of course, housing. It's one major downside to living in Hawaii that should also give pause to anyone considering retirement here.

San Diego stays classy with great overall weather suited to an outdoor lifestyle of hiking, swimming, or lounging on the beach. Of course, you eventually have to come indoors, and if you want that to be to a home that you own, you can expect to pay something along the lines of $997,000 for the privilege. An average $5,136 per month mortgage awaits the person wanting to buy a home in San Diego, above the state average of $4,951.79 per month.

At $61,632 per year, assuming you were earning the median household income of $109,765 per year, you would still find yourself spending over 56% of your income on mortgage payments alone. That's without consideration for property taxes, insurance premiums, or utilities. So if you were trying to follow the prescribed 30% rule around housing expenses, you would be failing miserably in that regard. Like other Californian cities on this list, San Diego's average mortgage even surpasses the state average of $4,951 per month. 

You're going to find a lot of the most expensive cities in the U.S. in California, since this state accounts for 38% of the 550 'million dollar cities' in the U.S. San Jose joins those ranks with a proximity to Silicon Valley that gives housing tech magnate sized prices. A population of just over 1 million people have helped propel the median home prices in San Jose to $1,112,817. Median household incomes of $142,931 demonstrate how even a six-figure income doesn't necessarily equate to affordability, in a city where the 30% housing expense rule goes completely out the window.

At more than twice the median national sales price of homes, and with an average mortgage tipping the scales at around $6,871 per month, San Jose easily earns its designation as a million dollar city. This is even higher than the average monthly mortgage payment for the state, which at $4,951.79, is also nothing to sneeze at. So even for California, San Jose is an expensive city to live in. 

With a population of 3,932,433, Los Angeles is the second-most-populous city on this list, and the homes that house them aren't inexpensive. The average $4,951 mortgage payment in the state of California is left in the dust in Los Angeles, where the median monthly mortgage with a 20% downpayment amounts to $5,539. The median home price in Los Angeles in 2024 was just over $1.1 million, so a 20% downpayment would bring you in the range of $220,000 to have the privilege of spending over $5,000 per month on a home.

When you consider the median annual income of the population is around $84,891, the risk of ending up house poor in Los Angeles is a high possibility. According to CoStar, a developer in Los Angeles is currently building an 800-unit affordable housing complex with space for a Costco to rest at its base. Notable for not being funded by public tax dollars, the construction will be financed by public tax credits and private investment from pension funds and banks. If the Los Angeles lifestyle appeals to you but the cost of housing doesn't, this may be a more affordable way to attain it. 

Santa Barbara, framed between the Santa Ynez mountains and the Pacific Ocean, is also a city where many homeowners have figured out how to achieve the wealth threshold that places someone in the 1%. To consider living here, you would probably want to be in that tax bracket, since the median price of homes in Santa Barbara are over $1.3 million. The cost of home ownership here may have something to do with the smaller population of 98,267 people in this part of California.

An average mortgage payment of $4,400 per month sets the typical mortgage in Santa Barbara below the state average of $4,951 per month, but not by much. Even a median household income of $118,858 doesn't guarantee affordability when considering that 30% rule for housing expenses. That would be just over $36,000 if considering mortgage alone, but with the addition of other housing costs, would cost even more. With the average mortgage in Santa Barbara adding up to a $52,800 annual payment, even someone with the average six-figure income would end up contributing more money to household expenses than financial advisors would recommend. Considering that getting a mortgage in this state might be impossible in a decade, you should think long and hard about tying up so much of your income in a home here. 

Going from living next to Silicon Valley, to living under the direct shadow of the center of the American tech universe comes with a cost. Although 876,910 people call San Francisco home, boasting a healthy median household income of $145,255 still pales in comparison to the cost of housing. With homes soaring into seven figure territory at just over $1.3 million, you have a city where the average price of a home is almost 10 times the median household salary, with an average mortgage payment of $6,619 per month. These expenses get passed on to rents too. An average monthly rent of $2,432 per month works out to more than the national median mortgage, and even makes choosing to rent a daunting task. Still, looking at the average cost of a home and mortgage in San Francisco, it would be fair to say San Francisco is a city where renters are winning when it comes to more affordable living. 

Last but not least is Newport Beach, located in Orange County, CA. Here, the average home will cost you just over $1.5 million, and the median value of homes is rapidly approaching a million dollars at $961,400. To give you an idea of how much more expensive that is in relation to the national average, homes in Orange County represent an additional premium of over 166%.

The population of 82,637, according to the Economic Research Institute, somehow makes a median household income of $158,461 work for them in a housing market where, as per Realtor.com, the median sold home price is $3.7 million. This not only far surpasses the state and national averages for home prices, but even surpasses the local County's average price of homes by over 100%. With homes in Newport Beach being listed by realtors at $5 million, purchasing a house for around $3 million would ironically be considered a deal. The average mortgage payment in Orange County is $6,130 per month, but according to the Orange County Register, a monthly mortgage of $7,700, even with a 20% downpayment, is becoming more of the norm.