The 15 Most Expensive Housing Markets in the US: Real Estate with the Highest Average Home Prices
The most expensive housing markets in the U.S. have an average home price almost three times the national average.
Home price growth might be slowing, but that doesn't mean the country's most expensive housing markets are getting anywhere close to affordable.
The S&P Cotality Case-Shiller U.S. National Home Price NSA Index rose 1.9% in July compared with a year earlier. In other words, home prices nationwide were 1.9% higher than they were in July 2025. The 20-city index, which tracks some of the nation's largest metro housing markets, increased 2.5% in the same period.
Those gains don't tell the whole story. Home prices have risen more slowly than inflation for 14 consecutive months, according to S&P Dow Jones Indices. In July, for example, home prices increased 1.9% year over year while inflation was 3.4%.
The housing market varies considerably depending on where you live. Among the 20 cities tracked, annual changes in July ranged from a 6.9% increase in Chicago to a 1.6% decline in Seattle.
Despite that cooling, the most expensive housing markets in the U.S. remain exceedingly costly by historical standards. The national Case-Shiller index remains 9.3% above its June 2022 peak, while the 20-city index is 9.9% higher.
To determine what average home prices look like on the ground in the nation's most expensive housing markets, we turned to the latest data from the Council for Community and Economic Research (C2ER).
The C2ER Cost of Living Index measures prices across U.S. urban areas for housing, groceries, utilities, transportation, healthcare and miscellaneous goods and services, such as getting your hair done or going to a movie.
Housing remains one of the biggest expenses. According to C2ER's second-quarter 2026 data, the average home price across the markets it surveyed was $556,432. But in the country's most expensive housing markets, buyers can expect to pay two, three or even five times that amount.
Most expensive housing markets in the U.S.
That sticker shock is even more salient in a select set of U.S. cities.
With C2ER's data in hand, we were able to identify the 15 most expensive housing markets in the U.S. How costly do the most expensive housing markets in the U.S. get? Take a closer look at the U.S. cities with the highest average home prices.
For comparison's sake, here's a look at the most expensive cities in the U.S., where residents are willing to pay more for everything in exchange for the opportunities the cities offer.
Source: C2ER's Cost of Living Index, 2026 Second Quarter Data, published September 2026. Index data is based on average prices of goods and services collected during the second quarter of 2026, with index values based on the weights from the 2022 U.S. Consumer Expenditure Survey from the Bureau of Labor Statistics. Population data, household incomes, home values and other demographic information are from the U.S. Census Bureau.
15. Boston, Massachusetts
- City population: 675,647
- Median household income: $97,791
- Average home price: $1,121,850
- Housing costs vs U.S. average: 121.1% higher
With its 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. Add in Boston Common and the Public Garden, the Freedom Trail, Fenway Park and a historic waterfront, and the city has plenty to keep residents busy.
That popularity comes at a high cost. Overall living expenses in Boston are about 49% higher than the national average, according to C2ER. Housing is an even bigger expense, with costs running 121.1% above the national average.
Putting down roots is particularly pricey. The average home price in Boston is now $1,121,850, more than twice C2ER's national average of $556,432. The average monthly principal and interest payment on a mortgage is $5,228.
Renters don't get much of a break. The average apartment rent in Boston is $4,420 a month. Keeping the lights and heat on is pricey, too, with utility costs running nearly 60% above the national average.
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14. San Diego, California
- City population: 1,406,106
- Median household income: $108,077
- Average home price: $1,153,168
- Housing costs vs U.S. average: 101.3% higher
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.
When it's time to take it easy, San Diego offers a world-class zoo, the museums and gardens of Balboa Park, the USS Midway, a historic aircraft carrier turned museum, and a diverse and delicious restaurant scene.
What's not to like?
For one thing, San Diego has one of the most expensive housing markets in the U.S. The average home price is $1,153,168, more than twice C2ER's national average.
Renters feel the pinch, too, with the average apartment going for $3,025 a month. Housing isn't the only expense that runs high. Utility costs are nearly 53% above the national average, while transportation costs are about 35% higher.
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13. Bethesda, Maryland
- Population: 68,056
- Median household income: $192,237
- Average home price: $1,182,185
- Housing costs vs U.S. average: 99.5% higher
Residents pay a premium to live in this upscale D.C. suburb, which is home to the National Institutes of Health, Walter Reed National Military Medical Center and a number of other federal institutions.
Housing is the biggest contributor to the area's high cost of living. According to C2ER, housing costs in the Bethesda-Gaithersburg-Frederick market are 99.5% higher than the national average, while the average home price is $1,182,185.
Other major expenses don't run quite as high. Healthcare costs are 7.1% above the national average, while utilities are 14.2% higher and transportation costs are 11.2% higher.
Maryland also has both an inheritance tax and an estate tax, adding another financial consideration for residents planning how to pass on their wealth.
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12. Framingham-Natick, Massachusetts
- Framingham population: 73,361
- Framingham median household income: $107,419
- Average home price: $1,186,667
- Housing costs vs U.S. average: 105.2% higher
Located about 20 miles west of Boston, Framingham and neighboring Natick offer residents access to the jobs and amenities of the Boston area without living in the city itself. Both communities also have direct MBTA Commuter Rail service to Boston, with trains reaching South Station in roughly 40 to 60 minutes. But proximity to one of the country's most expensive metro areas comes at a price.
According to C2ER, the average home price in the Framingham-Natick area is $1,186,667, more than twice the national average. Overall housing costs are about 105% higher than the national average.
Other expenses add to the cost of living. Utilities run nearly 60% above the national average, while healthcare costs are 26% higher. Overall, the cost of living in the Framingham-Natick area is about 47% above the national average.
Renters face high costs, as well. The average apartment rent is $2,840 a month, according to C2ER.
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11. Arlington, Virginia
- Population: 243,931
- Median household income: $142,114
- Average home price: $1,187,393
- Housing costs vs U.S. average: 107.5% higher
Washington, D.C., and its close-in suburbs have some of the highest living costs in the nation, and Arlington is no exception.
Home to the Pentagon and Arlington National Cemetery, Arlington sits just across the Potomac River from D.C. Its proximity to the nation's capital comes with a hefty housing premium.
The average home price in Arlington is $1,187,393, more than twice C2ER's national average of $556,432. Overall housing costs, including rents and mortgages, are 107.5% higher than the national average.
Monthly principal and interest payments on mortgages average $5,551, while apartment rents average $3,166 a month. Overall, the cost of living in Arlington is about 38% higher than the national average.
High household incomes help offset some of those costs. Arlington's median household income is $142,114, according to the U.S. Census Bureau.
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10. Nassau County, New York
- County population: 1,398,939
- Median household income: $146,202
- Average home price: $1,228,033
- Housing costs vs U.S. average: 135.6% higher
Just east of New York City on Long Island, Nassau County offers residents suburban living within easy reach of Manhattan. The county is connected to New York City by the Long Island Rail Road and is home to communities ranging from waterfront villages to densely populated suburbs.
That location comes at a steep cost: The average home price in Nassau County is $1,228,033, more than twice C2ER's national average. Overall housing costs are 135.6% higher than the national average.
Renters face high costs, too, with the average apartment going for $4,236 a month. Average monthly principal and interest payments on mortgages are $5,881.
Other household expenses are a mixed bag. Utilities run nearly 43% above the national average, while transportation costs are about 7% below average. Overall, the cost of living in Nassau County is about 51% higher than the national average.
High incomes help offset some of those expenses. The median household income in Nassau County is $146,202, according to the U.S. Census Bureau.
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9. Seattle, Washington
- City population: 784,777
- Median household income: $123,860
- Average home price: $1,241,965
- Housing costs vs U.S. average: 104.9% higher
Seattle has long been known for its expensive housing market, fueled in part by a strong job market, limited housing supply and years of rapid home price growth.
More recently, prices have started moving in the other direction. Seattle home prices fell 1.6% in July compared with a year earlier, according to the S&P Cotality Case-Shiller Seattle Home Price NSA Index. That was the largest annual decline among the 20 metro areas tracked by Case-Shiller.
But a modest decline doesn't make Seattle affordable. The average home price is $1,241,965, more than twice C2ER's national average of $556,432. Overall housing costs, including rents, mortgages and related expenses, are about 105% higher than the national average.
Seattle's relatively high household income helps offset some costs, but housing remains a major expense. Average monthly principal and interest payments on mortgages are $5,797, while apartment rents average $2,646 a month.
One expense that doesn't carry a premium is utilities. C2ER puts Seattle's utility costs about 4% below the national average.
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8. Los Angeles, California
- City population: 3,869,089
- Median household income: $81,939
- Average home price: $1,336,542
- Housing costs vs U.S. average: 126.9% higher
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. 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.
The average home price in Los Angeles is $1,336,542, about 2.4 times C2ER's national average. Overall housing costs are about 127% higher than the national average.
Home price growth has slowed considerably. Los Angeles home prices increased 1.24% in July compared with a year earlier, according to the S&P Cotality Case-Shiller Los Angeles Home Price NSA Index.
Renting is also rough on the wallet. The average apartment rent is $3,084 a month, according to C2ER. Unlike in the previous C2ER data, utilities no longer offer much relief. Utility costs are now 12% above the national average, while transportation costs are nearly 38% higher.
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7. San Francisco, California
- City population: 826,079
- Median household income: $140,970
- Average home price: $1,515,191
- Housing costs vs U.S. average: 169.6% higher
Years of rapid growth, a concentration of high-paying technology jobs and limited housing supply have helped make San Francisco one of the most expensive housing markets in the U.S.
Houses are famously expensive — an obstacle for aspiring homeowners. The average home price is $1,515,191 in San Francisco, according to C2ER. The median home value is $1,394,500, according to the U.S. Census Bureau. That means half of the city's homes are worth nearly $1.4 million or more.
Homeowners face steep monthly costs, too. Average principal and interest payments on mortgages are $7,151 a month, compared with $2,512 nationally.
Renters don't fare much better. The average rent for an apartment in San Francisco is $4,209 a month, according to C2ER. That's more than 2.6 times the national average. Overall housing costs, including rents, mortgages and related expenses, are 169.6% higher than the national average.
San Francisco's high household incomes help offset some of those costs. The median household income is $140,970, according to the U.S. Census Bureau.
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6. Queens, New York
- Borough population: 2,358,182
- Median household income: $86,136
- Average home price: $1,517,921
- Housing costs vs U.S. average: 162.9% higher
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 New York City 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 reflect that. The average home price in Queens is $1,517,921, according to C2ER, nearly three times the national average of $556,432. Housing costs overall are 162.9% higher than the national average.
Renters face steep costs, too. The average apartment rent in Queens is $3,880 a month, while average monthly principal and interest payments on a mortgage are $7,119.
Queens' cost of living extends beyond housing. Transportation costs are about 6% above the national average, while utility costs are about 15% higher.
Despite the high housing costs, Queens' median household income is $86,136, according to the U.S. Census Bureau.
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5. Brooklyn, New York
- Borough population: 2,653,963
- Median household income: $80,263
- Average home price: $1,617,092
- Housing costs vs U.S. average: 180.6% higher
Brooklyn is one of the five boroughs that make up New York City, but in recent decades it has developed a distinct identity of its own. Its proximity to Manhattan, thriving neighborhoods and access to the city's jobs and amenities have helped make it one of the country's most expensive housing markets.
Once considered a more affordable alternative to Manhattan, Brooklyn now commands some of the country's highest housing costs. Housing costs, including rents and mortgages, are 180.6% higher than the national average.
Home prices? Fuggedaboutit. The average is $1,617,092, according to C2ER, nearly three times the national average of $556,432.
Average monthly principal and interest payments on a mortgage are $7,486, while apartment rents average $4,316 a month.
Brooklyn's high housing costs stand out even against its other expenses. Utilities are about 15% above the national average, while transportation costs are about 9% higher.
The median household income in Brooklyn is $80,263, according to the U.S. Census Bureau.
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4. Orange County, California
- County population: 3,149,507
- Median household income: $116,289
- Average home price: $1,764,506
- Housing costs vs U.S. average: 179.3% higher
Although it's not a city, we include Orange County on this list because it encompasses several large municipalities, including Anaheim, Santa Ana and Irvine. Known as the O.C., the county is synonymous with Southern California's affluent coastal communities.
Several large municipalities make up the county, which sits southeast of Los Angeles. Communities such as Newport Beach, Laguna Beach and Irvine are known for high home prices, helping make Orange County one of the country's most expensive housing markets.
The average home price across Orange County is $1,764,506, according to C2ER. That's more than three times the national average. Overall housing costs are 179.3% higher than the national average.
Renters face steep costs, too. The average apartment rent is $3,193 a month, while average monthly principal and interest payments on a mortgage are $8,175.
Housing isn't the county's only expensive category. Transportation costs are about 37% above the national average, while utilities are 16% higher. Healthcare is one area in which residents get a relative break, with costs about 1% below the national average.
Orange County's median household income is $116,289, according to the U.S. Census Bureau.
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3. Honolulu, Hawaii
- Population: 341,868
- Median household income: $86,504
- Average home price: $1,776,877
- Housing costs vs U.S. average: 202.6% higher
Living in a remote Pacific paradise comes at a price. Honolulu residents pay more than they would on the mainland for many everyday expenses, in part because so many goods must be shipped to the islands.
Housing is particularly expensive. The average home price in Honolulu is $1,776,877, according to C2ER, more than three times the national average of $556,432. Overall housing costs are 202.6% higher than the national average.
Homeowners face steep monthly payments, too. Average principal and interest payments on a mortgage come to $8,060 a month, compared with $2,512 nationally.
Renters face a similar dilemma. The average apartment rent in Honolulu is $4,670 a month, nearly three times the national average.
And Honolulu's elevated living costs hardly end with housing. Utility costs are 107.3% higher than the national average. C2ER's Q2 2026 data puts Honolulu's average monthly utility bill at $638.24, the highest among the 248 urban areas surveyed.
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2. San Jose, California
- City population: 989,814
- Median household income: $146,427
- Average home price: $2,029,515
- Housing costs vs U.S. average: 216.7% higher
San Jose sits at the heart of Silicon Valley, home to major technology companies and thousands of high-paying jobs. But those salaries come with a steep cost of living, particularly for anyone trying to buy a home.
The average home price in San Jose is $2,029,515, according to C2ER, more than 3.6 times the national average of $556,432. The median value of owner-occupied homes is $1,233,200, according to the U.S. Census Bureau.
Housing costs overall are 216.7% higher than the national average. Average monthly principal and interest payments on a mortgage come to $9,368, while the average apartment rent is $3,466.
Other expenses are elevated, too. Utility costs are about 34% higher than the national average, while the overall cost of living is 78.5% higher.
San Jose's median household income of $146,427 is substantially higher than the national median, but housing remains an enormous expense even for households earning six-figure incomes.
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1. Manhattan, New York
- Borough population: 1,664,862
- Median household income: $103,931
- Average home price: $3,008,666
- Housing costs vs U.S. average: 381.8% higher
No place beats Manhattan when it comes to the most expensive housing markets in the U.S.
With space at a premium and location paramount, the average home price in Manhattan is $3,008,666, according to C2ER. That's more than five times the national average of $556,432. The median value of owner-occupied homes is $1,090,500, according to the U.S. Census Bureau.
Homeowners face extraordinary monthly costs, too. Average principal and interest payments on a mortgage come to $13,917 a month, more than five times the national average of $2,512.
Renters don't get much relief. The average apartment rent in Manhattan is $5,785 a month, according to C2ER. That's more than 3.6 times the national average.
Overall housing costs, including rents, mortgages and related expenses, are 381.8% higher than the national average.
Manhattan's median household income is $103,931, according to the U.S. Census Bureau. But even with relatively high household incomes, the sheer cost of housing makes Manhattan an outlier among U.S. housing markets.
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