Secret takeaways San Francisco, Anaheim, and Los Angeles are the most pricey cities in the U.S., where average earners require to spend over 60% of their earnings on real estate.
Buying a house today is a pipeline dream for numerous Americans. Monthly real estate payments have actually hovered near record highs for many years as home loan rates and house rates stay raised. The common property buyer today spends nearly 40% of their earnings on housing, according to Redfin data– well above the suggested limit. To adjust, many people are rather choosing to rent long-lasting or leaning on family for assist with down payments.
Almost all of the nation’s most pricey significant real estate markets are focused along the coasts, where minimal space and tight supply have actually long pushed costs up. Prior to the pandemic, however, expenses were more workable. It wasn’t up until after the pandemic housing boom that it became largely unaffordable to buy a home, contributing to a prolonged slowdown that has just recently began to recuperate.
So, which cities are the most pricey? Why is housing so expensive? Let’s find the most pricey cities to live in and purchase a home in 2026, where residents require to invest over 35% of their earnings on housing.
The 10 most pricey cities in the U.S.
. A majority of people today spend more than 30% of their monthly income on real estate, and in some locations, they spend nearly half. The most pricey housing markets in the country are normally limited to the greatest earners. Median-income homebuyers are efficiently priced out– a significant reason for the years of sluggish demand.
| City | Share of earnings needed to pay for a normal home | Mean household earnings | Median list price |
| San Francisco, CA | 75.0% | $162,118 | $1,725,000 |
| Anaheim, CA | 69.4% | $126,178 | $1,249,500 |
| Los Angeles, CA | 68.0% | $97,775 | $930,000 |
| San Jose, CA | 66.2% | $176,401 | $1,650,000 |
| New York, NY | 61.6% | $98,287 | $790,000 |
| San Diego, CA | 57.7% | $115,304 | $930,000 |
| Miami, FL | 54.6% | $77,854 | $575,000 |
| Oxnard, CA | 53.6% | $119,133 | $892,000 |
| Oakland, CA | 49.6% | $139,407 | $945,000 |
| Bridgeport, CT | 47.0% | $127,489 | $690,000 |
There are 26 cities that we evaluated where housing payments need between 30-35% of a common earnings– technically unaffordable, however not enough to meet our threshold. Examples consist of Columbus (30.1%), Washington, D.C. (31.9%), Phoenix (32.9%), and Nashville (34.1%).
Cities where affordability is decreasing the most
“Housing markets throughout the nation are going through a long, sluggish reset from the pandemic, when prices were climbing up by 10% each month,” said Daryl Fairweather, Redfin Chief Economic Expert. “Homebuyers in 2020-2022 were hungry to take advantage of low-rate mortgages, and home sellers were frequently getting deals for thousands over asking, leading to a record-fast market. That trend reversed as prices and rates skyrocketed in late 2022, but now the market is balancing out, which Redfin expects to continue for the foreseeable future.”
Today, cost is improving in all however the most competitive markets, as house rates rise more gradually than earnings. One significant reference is San Francisco: Although it recently ended up being the most expensive housing market in America, demand has actually continued to climb up due to an influx of AI wealth.
Coastal cities are the least economical places to purchase a house
The East and West Coast are home to a bulk of the most costly housing markets in the U.S. These areas have long been the most pricey locations because supply has actually not stayed up to date with need for many years. Homebuilders have not been as active in seaside hubs due to rigorous zoning laws and more expensive land, making it less attractive to develop housing and adding to a lack. Wealth concentration has actually likewise played a role.
Recently, though, some of the most pricey cities have actually seen outsized affordability gains. San Jose (-6.7 ppts) is leading the way, followed by Chicago (-6.1 ppts), Miami (-4.7 ppts), and Seattle (-4.6 ppts). Affordability is enhancing mostly because more sellers are listing their homes than buyers are buying, enhancing stock. Homeownership is still out of reach for the majority of people, however the expense space is beginning to narrow.
Why is real estate so pricey?
There are three primary factors behind today’s high house prices:
- Minimal real estate supply
- Strict zoning laws
- Financier market share
While zoning laws and financier market share play a role in today’s home costs, the largest driver is a chronic stock shortage. There aren’t adequate homes for individuals who desire them, and insufficient homebuilding to fulfill need.
This pattern began throughout the Great Recession and was intensified during the pandemic homebuying craze, when property buyers taken advantage of ultra-low mortgage rates. Now, need has actually dropped as priced-out purchasers wait on the sidelines, putting a cover on cost development and helping price gradually improve. However it will take years before expenses return to “normal.”
>> Read: Why Are Homes So Pricey?
Approach
Rankings broaden on a May 2026 Redfin analysis of real estate affordability by examining 96 of the biggest U.S. cities (“cities”). The analysis focused on the share of earnings a median-income resident requirements to spend monthly to afford a common home. A home was considered “unaffordable” if its matching regular monthly payment was more than 35% of typical month-to-month earnings, presuming a 20% down payment, typical taxes and costs, and a 30-year home loan. Cities with the highest month-to-month income requirements ranked as the least economical.
All information originated from a Redfin analysis of MLS, U.S. Census, and Atlanta Fed data.