The 15 Most Expensive Housing Markets in the US: Cities with the Highest Average Home Prices

15. Boston, Massachusetts

• City population: 654,281
• Median household income: $79,283 (U.S.: $69,717)
• Average home price: $921,897 (U.S.: $452,510)
• Premium to U.S. average: 104%

With its unparalleled collection of universities, hospitals, historical sites, and tech and biotech companies, it's easy to see why Boston is such an appealing place to live. And while there's no question the city's popularity comes at a high cost, it's not nearly as high as some East Coast cities that are often mentioned in the same breath as Boston.

After all, the high concentrations of students, recent grads and young professionals require some level of affordability to get by while they're starting out. So while the city's overall living costs are almost 50% higher than the national average, that's a relative bargain compared to, say, New York City or San Francisco.

But as one of the most expensive housing markets in the U.S., putting down roots in Boston is another matter entirely. At nearly $922,000, average home prices are more than twice the U.S. average. Principal and interest payments on mortgages ($3,548 per month) are likewise double what the rest of the nation shells out ($1,768 a month). Keeping the lights and heat on is a pricey proposition, too, with utilities running about 25% higher than the U.S. mean.

14. Queens, New York

• Borough population: 2,331,143
• Median household income: $73,262
• Average home price: $926,306 
• Premium to U.S. average: 105%

New Yorkers priced out of Manhattan used to move to Brooklyn. But now Brooklyn is no longer a bargain either, and that has folks flocking to Queens. 

Not that it's much of a refuge. This NYC borough has one of the most expensive housing markets in the U.S.

Once best known for Archie Bunker and the New York Mets, Queens is becoming trendier by the day – and prices are following suit. The average home price comes to $926,000, or more than twice the national average.

It should come as no surprise that housing-related costs are also 111% greater than the U.S. average. After all, the mean monthly apartment rent comes to $ 2,969 vs $1,369 a month nationally. And the average mortgage carries a principal and interest-rate payment of $3,671 per month vs $1,768 across the U.S. 

Looking at it another way, although Queens' median household income is $3,545 greater than the national median, the borough's median home value of $642,000 outpaces the U.S. median by nearly $190,000.

13. Alexandria, Virginia

• City population: 154,706
• Median household income: $101,162
• Average home price: $937,623 
• Premium to U.S. average: 107%

Washington, D.C., and its close-in suburbs like Alexandria are a magnet for the highly educated seeking high-powered jobs. Naturally, many of those ambitious folks are highly paid, and the region's prices reflect that.

Taken as a whole, the official Washington-Arlington-Alexandria, DC-VA-MD-WV Metro Area (pop. 6.4 million) claims an average home price of $1.2 million – a premium of 156% to the U.S. average. But for our purposes, we're looking at only the priciest cities within the unwieldy Census Bureau designated area.

Which brings us to Alexandria, where the average home price of nearly $934,000 is more than twice the price of the typical American dwelling. Overall housing costs are 98% greater than the U.S. mean, driven partly by average apartment rents of $2,357  a month (vs $1,369 nationally), and average principal and interest payments on mortgages of $3,708 a month (vs the national average of $1,768).

Happily for locals, somewhat more reasonable prices for groceries, healthcare and utilities make the total cost of living in Alexandria "only" 37% higher than the U.S. average.

12. Seattle, Washington

• City population: 733,904
• Median household income: $110,781
• Average home price: $937,623
• Premium to U.S. average: 108%

Seattle has long been known for its red-hot housing market, where too little inventory and fierce competition conspired to send home prices skyrocketing for the better part of a decade. Prices have cooled off over the past year, dropping about 5%, according to the S&P CoreLogic Case-Shiller Seattle Home Price NSA Index (opens in new tab), but Seattle remains one of the most expensive housing markets in the U.S.

A booming tech scene certainly doesn't help matters. Microsoft (MSFT (opens in new tab)) and Amazon.com (AMZN (opens in new tab)) are both based in the Seattle area, as are many smaller high-tech companies. The bottom line is that Seattle's average home price is 108% greater than the national average. Overall housing costs – including rents, mortgages and related expenses – are 111% higher than the U.S. mean. 

True, Seattle's high median household income helps homeowners get by, but those elevated home prices nevertheless take quite a bite. At least residents can take some comfort in the fact that their utility bills run only 5% more than what the typical American pays.

11. San Diego, California

• City population: 1,381,600
• Median household income: $93,042
• Average home price: $1,001,748 
• Premium to U.S. average: 121%

San Diego, with its miles of beaches and nearly ideal climate, is paradise for those who love the outdoors. Be it surfing, sailing, hiking, biking, golfing or just exploring Balboa Park, this city on the Pacific has something for everyone.

And for those who prefer more sedentary activities, San Diego offers a world-class zoo, museums, professional sports teams and a wide-ranging restaurant scene.

What's not to like?

Well, for one thing, San Diego has one of the most expensive housing markets in the U.S. At more than $1 million, the average home price is 121% greater than the national average.

Or consider it this way: San Diego's median home value comes to $768,800, or 173% higher than the U.S. median of $281,400. The city's median household income, however, is only a third greater than the U.S. level. Renters feel the pinch, too, with the average apartment going for $3,057 a month vs the national average of $1,369.

10. Lake Havasu City, Arizona

• City population: 56,510
• Median household income: $59,817
• Average home price: $1,004,158 
• Premium to U.S. average: 122%

Lake Havasu City, located near the border with California about halfway between Phoenix and Los Angeles, bills itself as "Arizona's Playground." The fast-growing city has become a haven for tourists, vacationers and especially retirees – and it has the home prices to prove it. 

Indeed, the city, which was founded in 1968 and serves as home to The London Bridge (opens in new tab), has one of the most expensive housing markets in the U.S. 

With a median age of 55, retirees have helped bid up the local housing market to the point where the average home price in Lake Havasu City tops $1 million. 

It's easy to understand the city's allure for folks looking to enjoy their post-working years. Recreational fishing and boating are one draw, thanks to the city's sprawling lake, which is actually a man-made reservoir. Fine dining, the Grace Arts Live Theatre and classic car shows are just a sampling of the year-round activities on tap.

House prices in Lake Havasu City have been cooling off since the summer of 2022. Over the past decade, however, house prices are up by about 165%, according to the U.S. Federal Housing Finance Agency (opens in new tab).

9. Bethesda, Maryland

• City population: 68,014
• Median household income: $167,162
• Average home price: $1,016,715 
• Premium to U.S. average: 125%

What goes for Alexandria goes for Bethesda, too. Residents pay a premium to live in the upscale D.C. suburb, which is home to the National Institutes of Health, Walter Reed National Military Medical Center and a number of other prestigious federal government institutions.

As a medical hub, it's perhaps befitting that healthcare costs run about 15% lower than the national average in Bethesda. Other major expense categories aren't too bad, either. Groceries and utilities are 9% more expensive in this D.C. suburb, and transportation is only 5% more expensive. 

The biggest line item contributing to Bethesda's high cost of living? Not surprisingly, it's housing. Renters and homeowners pay a premium of 119% to the national average to keep roofs over their heads.  

8. Arlington, Virginia

• City population: 232,965
• Median household income: $125,651
• Average home price: $1,057,001 
• Premium to U.S. average: 134%

As noted with Alexandria and Bethesda above, Washington, D.C., and its close-in suburbs sport some of the highest living costs in the nation. So it should come as no surprise that Arlington makes the top five for highest home prices on our list.

This suburb, home to the Pentagon and Arlington National Cemetery, sits just across the Potomac River from Washington, D.C. As with its neighbors, Arlington attracts ambitious, well-paid people – and has the home prices to prove it.

Housing-related expenses, including rents and mortgages, are more than twice the national average. Locals can thank an average home price of more than $1 million for much of that financial pain. Average principal and interest payments on mortgages top $4,000 a month in Arlington. 

On the plus side for residents, Arlington's median household income of nearly $126,000 is among the highest in the U.S. And its per capita income of $80,996 is more than double the national figure of $38,332.

7. Los Angeles, California

• City population: 3,849,306
• Median household income: $70,372
• Average home price: $1,098,874 
• Premium to U.S. average: 143%

Few cities can top Los Angeles for excess and glamor, but most of its residents don't work in Hollywood or shop on Rodeo Drive. While high living expenses make L.A. one of the most expensive U.S. cities, median annual incomes are only $655 higher than the national average.

Home prices – and overall housing costs – are the main culprits when it comes to L.A.'s comparative lack of affordability. True, as is the case with many other cities on this list, the area's average home price is skewed by the dwellings of so many high- and ultra-high net worth residents. Regardless, Los Angeles' median home value of $812,800 (vs $281,400 for the U.S.) is still plenty daunting for folks of more typical means.

The city's average home price of $1.1 million offers a premium of 143% to the national average. LA home prices have increased more than 10% over the past three years, per the S&P CoreLogic Case-Shiller Los Angeles Home Price NSA Index (opens in new tab).

As one would expect, renting is also rough on the wallet. Apartment rents, on average, are 132% more expensive than the U.S. average. That's a far cry from the big cities with the cheapest apartment rents. On the plus side, utilities are only about 10% more expensive in the City of Angels.

6. Washington, D.C.

• City population: 670,050
• Median household income: $90,088
• Average home price: $1,156,418 
• Premium to U.S. average: 156%

As pricey as its suburbs might be, the nation's capital tops them all when it comes to the most expensive housing markets in the U.S. 

An average home price of $1.2 million makes buying a house in Washington, D.C. almost 2.6 times higher than the national average. Comprehensive housing-related costs, including rents, mortgages and insurance, are a burdensome 2.5 times the national average, according to C2ER.

Beyond that, however, Washington is something of a tale of two cities when it comes to living costs. Groceries run about 9% above the national average, while utilities are about 12% more expensive. Transportation expenses aren't overly onerous, at less than 9% above the U.S. average. A wide-ranging bus and metro system makes getting to and around the District of Columbia affordable. The DC Circulator bus, for example, costs just $1 and its routes reach popular spots including Georgetown, Union Station and the National Mall.

And, of course, numerous museums and historical sites are free to visit, too.

5. Orange County, California

• County population: 3,167,809
• Median household income: $100,559
• Average home price: $1,248,882 
• Premium to U.S. average: 176%

Although not properly a city itself, we include Orange County on this list because it comprises several large municipalities. Known as The O.C. (opens in new tab) for short, the county is synonymous with wealth – so much so that there was an entire TV series made about it in the 2000s.

Several large municipalities make up the county, which abuts Los Angeles to the southeast, including Anaheim, Santa Ana and Irvine. But it's the smaller, tonier enclaves such as Newport Beach (median home value: $2 million) that cement Orange County's reputation for sheltering some of Southern California's richest and most famous.

In fact, the average home price for all of Orange County sits at $1.2 million according to C2ER. That makes it the fifth priciest market in the country – and easily one of the most expensive housing markets in the U.S. 

However, at $2,919 a month, apartment rents are only a bit more than twice the national average. All in all, housing in the O.C. costs 156% more than what the typical American pays. On the other side of the ledger, healthcare costs are slightly lower than the national average, and utilities are about 10% cheaper.

4. Brooklyn, New York

• Borough population: 2,641,052
• Median household income: $67,567
• Average home price: $1,349,755 
• Premium to U.S. average: 198%

Technically, Brooklyn is one of the five boroughs that make up New York City, but in recent decades it has emerged as something of a metropolis unto itself. Indeed, if Brooklyn were an independent city, its population would be on par with Chicago, the third-largest city in the nation.

Once upon a time, Brooklyn was considered a viable alternative for those who couldn't afford to live in Manhattan. Those days are long gone. Housing-related expenses including rents and mortgages are almost triple the national average. 

And the average home price? Fuggedaboutit. At $1.3 million, Brooklyn homes cost more than three times the national average. Brooklyn is a sprawling borough, where the ultra-high-net-worth residents of, say, Brooklyn Heights, help skew its average home price upward. But its median home value of $793,300 – vs $281,400 U.S. – is shocking too.

And here's the kicker: Brooklyn's median household income is $2,150 lower than the U.S. median.

3. San Francisco, California

• City population: 815,201
• Median household income: $121,826
• Average home price: $1,502,557 
• Premium to U.S. average: 232%

Years of relentless growth driven by high-paid tech workers have given San Francisco one of the most expensive housing markets in the U.S. Even those residents who bring home fat paychecks can struggle to make ends meet.

Houses are famously expensive – an obstacle for aspiring homeowners. The average home price is a staggering $1.5 million in San Francisco, according to C2ER. The median home value is an astronomical $1.3 million.

Let's pause on that for a moment: Half of the city's homes cost more than $1.3 million.

At $5,786 a month, average principal and interest payments on mortgages are the third-highest in the U.S. – or 3.5 times what the typical American pays.

Renters don't fare much better. The average rent for an apartment in San Francisco is $3,765 a month. That's about 3.3 times the national average. Total housing costs, including rents, mortgages and related expenses, are more than three times the national average, too. 

2. Honolulu, Hawaii

• City population: 345,532
• Median household income: $73,434
• Average home price: $1,605,915 
• Premium to U.S. average: 255%

To enjoy the perks of living in such a remote Pacific paradise, Honolulu residents pay more than they would on the mainland for pretty much everything – and it's not hard to understand why. Most goods sold in Hawaii must arrive either by boat or by plane, which jacks up the price considerably.

Honolulu's average home price is 3.6 times greater than the national average. The median home value of $733,000 is likewise brutal. Meanwhile, average monthly principal and interest payments on mortgages come to $5,962. That's 3.4 times the national average of $1,250.

Renters face a similar dilemma. The average apartment lease goes for $3,141 per month in Honolulu, vs a national average of $1,768.

And Honolulu's elevated living costs hardly end with housing prices. The city reports the second most expensive groceries of all 265 urban areas surveyed by C2ER, as well as the fourth highest utility bills.

1. Manhattan, New York

• Borough population: 1,576,876
• Median household income: $84,435
• Average home price: $2,434,977 
• Premium to U.S. average: 438%

No place beats the center of the Big Apple when it comes to being the most expensive housing market in the U.S. 

With space at a premium and location paramount, the average price of a home in Manhattan is $2.4 million, or 5.4 times higher than the national average. Heck, the average home price in Manhattan is 52% higher than what you find in Honolulu, and 62% greater than what San Francisco has on offer. 

True, the island borough's median home value comes to a somewhat less stunning $940,900, or $365,500 lower than San Francisco. But average monthly principal and interest rate payments on mortgages stand at $9,762, which absolutely blows away every other city in the U.S. (Honolulu comes in second at $5,962, while the national average is $1,768.)

Average rent in Manhattan comes to $4,569 a month, which is also by far and away the highest of any American city.

The bottom line? Manhattan residents spend almost five times the national average for housing.