Looking to Buy a Home? Avoid These 10 Costliest Cities

Understanding the Rising Cost of Homeownership in the U.S.

For many Americans, the dream of buying a home has become increasingly difficult to achieve. The combination of rising housing costs, limited availability of homes, and high mortgage rates has made homeownership out of reach for a significant portion of the population. This challenge is particularly pronounced in certain metropolitan areas where even modest homes come with price tags that exceed half a million dollars. These areas are concentrated in specific regions of the country, highlighting the growing disparity in housing affordability across the U.S.

Key Takeaways on Housing Affordability

In 2025, home prices have continued to climb, with the most significant increases occurring in two major U.S. regions. According to data from Realtor.com, all 10 of the most expensive metro areas by median listing price in July are located in the West or Northeast. Half of these top 10 cities are in California, while others are found around major urban centers and a few state capitals. This pattern underscores the economic dynamics that drive housing costs in these regions.

Major Cities and State Capitals Lead the List

Realtor.com’s data from July 2025 highlights the 10 most expensive metro areas based on median listing price. The analysis also includes an estimate of the income required to afford a home in these areas while keeping housing costs at 30% of one's income. The list is dominated by large U.S. cities, with six metro areas in the West, four in the Northeast, and none in the South or Midwest.

Here are the 10 most expensive metro areas for July 2025:

Top 10 Most Expensive Metro Areas

1. Washington, D.C., Arlington, Alexandria (DC, VA, MD, WV)
   The median listing price for homes in this area is $612,500. With typical mortgage rates, property taxes, and insurance, monthly housing costs are estimated at around $3,700. To keep housing costs under 30% of income, an annual income of approximately $148,570 is needed.

2. Sacramento, Roseville, Folsom (CA)
   Proximity to the state capital contributes to higher housing prices. The median listing price here is $625,000, requiring an annual income of about $151,709 to stay within 30% of income.

3. Providence, Warwick (RI, MA)
   The median listing price in this area is $604,950. Despite being the lowest on the list, higher mortgage rates and property taxes push monthly costs to nearly $3,900, requiring an annual income of $155,460.

4. Seattle, Tacoma, Bellevue (WA)
   The median listing price in Seattle is $785,463. Monthly housing costs are projected at around $3,900, and an annual income of $191,093 is needed to afford the home.

5. New York, Newark, Jersey City (NY, NJ)
   The median listing price in and around New York City is $775,000. Higher property taxes increase monthly costs, requiring an annual income of $195,591.

6. Boston, Cambridge, Newton (MA, NH)
   This is the most expensive Northeastern metro area, with a median home price of $841,950. An annual income of $211,288 is needed to afford the home.

7. San Diego, Chula Vista, Carlsbad (CA)
   The median listing price in San Diego is $987,500, requiring an annual income of $234,712.

8. San Francisco, Oakland, Fremont (CA)
   The Bay Area has a slightly higher median price of $990,000, with the same mortgage and tax rates as San Diego. The required income is $235,284.

9. Los Angeles, Long Beach, Anaheim (CA)
   One of only two metro areas with a median listing over $1 million, Los Angeles requires an annual income of $271,573.

10. San Jose, Sunnyvale, Santa Clara (CA)
    The most expensive metro area in the country, with a median listing price of $1,373,750. To afford a home here, an annual income of $323,153 is needed.

The Bottom Line on Housing Costs

Home prices have continued to rise despite higher interest rates, making it increasingly challenging for many Americans to buy a home. In the metros listed above, median home prices range from $605,000 to nearly $1.4 million. To keep housing costs at 30% of income, buyers would need an annual income between $148,000 and $323,000. These figures highlight the growing economic divide and the urgent need for more affordable housing solutions in the U.S.