The Most Costly Cities within the U.S. in 2025

Key takeaways

• San Francisco, Anaheim, and Los Angeles are the costliest cities within the U.S., the place median earners must spend over 60% of their revenue on housing.
• The vast majority of the costliest locations to dwell are positioned on the coasts—led by California, which accounts for seven of the highest ten priciest cities.
• Home costs skyrocketed in the course of the pandemic and have solely lately began to stage out, straining budgets and placing a lid on demand in lots of locations.

Shopping for a home at present is a pipe dream for a lot of People. Month-to-month housing funds have hovered close to file highs for years as mortgage charges and home costs stay elevated. The everyday homebuyer at present spends practically 40% of their revenue on housing, in response to Redfin information—nicely above the really useful threshold. To adapt, many individuals are as a substitute selecting to hire long-term or leaning on household for assist with down funds. 

Almost all the nation’s most costly main housing markets are concentrated alongside the coasts, the place restricted house and tight provide have lengthy pushed costs upward. Previous to the pandemic, although, prices had been extra manageable. It wasn’t till after the pandemic housing growth that it turned largely unaffordable to purchase a house, contributing to a chronic slowdown that has solely lately began to get well.

So, which cities are the costliest? Why is housing so costly? Let’s uncover the costliest cities to dwell in and purchase a home in 2026, the place locals must spend over 35% of their revenue on housing.

The ten most costly cities within the U.S.

A majority of individuals at present spend greater than 30% of their month-to-month revenue on housing, and in some locations, they spend practically half. The costliest housing markets within the nation are usually restricted to the best earners. Median-income homebuyers are successfully priced out—a serious cause for the years of sluggish demand. 

There are 26 cities that we analyzed the place housing funds require between 30-35% of a typical revenue—technically unaffordable, however not sufficient to fulfill our threshold. Examples embody Columbus (30.1%), Washington, D.C. (31.9%), Phoenix (32.9%), and Nashville (34.1%).

Cities the place affordability is declining essentially the most

“Housing markets throughout the nation are present process a protracted, gradual reset from the pandemic, when costs had been climbing by 10% each month,” mentioned Daryl Fairweather, Redfin Chief Economist. “Homebuyers in 2020-2022 had been hungry to make the most of low-rate mortgages, and residential sellers had been usually getting provides for hundreds over asking, resulting in a record-fast market. That pattern reversed as costs and charges skyrocketed in late 2022, however now the market is balancing out, which Redfin expects to proceed for the foreseeable future.”

At this time, affordability is bettering in all however essentially the most aggressive markets, as home costs rise extra slowly than incomes. One notable point out is San Francisco: Regardless that it lately turned the costliest housing market in America, demand has continued to climb as a consequence of an inflow of AI wealth. 

Coastal metros are the least inexpensive locations to purchase a home

The East and West Coast are residence to a majority of the costliest housing markets within the U.S. These areas have lengthy been the costliest locations as a result of provide has not saved up with demand over time. Homebuilders haven’t been as energetic in coastal hubs as a consequence of strict zoning legal guidelines and costlier land, making it much less interesting to construct housing and contributing to a scarcity. Wealth focus has additionally performed a task.

Not too long ago, although, a number of the most costly cities have seen outsized affordability features. San Jose (-6.7 ppts) is main the best way, adopted by Chicago (-6.1 ppts), Miami (-4.7 ppts), and Seattle (-4.6 ppts). Affordability is bettering primarily as a result of extra sellers are itemizing their houses than consumers are shopping for, boosting stock. Homeownership continues to be out of attain for most individuals, however the associated fee hole is starting to slim.

Why is housing so costly?

There are three main elements behind at present’s excessive home costs:

1. Restricted housing provide
2. Strict zoning legal guidelines
3. Investor market share

Whereas zoning legal guidelines and investor market share play a task in at present’s home costs, the biggest driver is a persistent stock scarcity. There aren’t sufficient houses for individuals who need them, and never sufficient homebuilding to fulfill demand. 

This sample started in the course of the Nice Recession and was exacerbated in the course of the pandemic homebuying frenzy, when homebuyers capitalized on ultra-low mortgage charges. Now, demand has dropped as priced-out consumers wait on the sidelines, placing a lid on worth progress and serving to affordability slowly enhance. However it’ll take years earlier than prices return to “regular.” 

>> Learn: Why Are Homes So Costly?

Methodology

Rankings broaden on a Could 2026 Redfin evaluation of housing affordability by analyzing 96 of the biggest U.S. metros (“cities”). The evaluation centered on the share of revenue a median-income resident must spend each month to afford a typical residence. A house was thought of “unaffordable” if its corresponding month-to-month fee was greater than 35% of median month-to-month earnings, assuming a 20% down fee, typical taxes and charges, and a 30-year mortgage. Cities with the best month-to-month revenue necessities ranked because the least inexpensive.

All information got here from a Redfin evaluation of MLS, U.S. Census, and Atlanta Fed information.