In the second quarter of 2024, the housing market continued to show significant price increases, with nearly 90% of metropolitan areas experiencing higher home prices. The National Association of Realtors (NAR) identified the following as the top 10 most expensive housing markets in the United States:
1. San Jose-Sunnyvale-Santa Clara, California
San Jose-Sunnyvale-Santa Clara remains the most expensive housing market in the U.S. The median price for an existing single-family home in this area surpassed $2 million for the first time since NAR began tracking in 1979. The high-tech industry and proximity to Silicon Valley contribute to the area’s steep home prices.
2. San Francisco-Oakland-Hayward, California
The San Francisco Bay Area holds its position as one of the priciest markets. The tech-driven economy and limited housing supply continue to drive up prices. Despite a cooling tech sector, the demand for housing in this area remains strong.
3. Anaheim-Santa Ana-Irvine, California
This Southern California market has seen continued high demand due to its desirable location, excellent schools, and proximity to beaches. Home prices in this area reflect its popularity and the limited availability of properties.
4. Urban Honolulu, Hawaii
Urban Honolulu remains one of the most expensive markets outside of California. The limited land availability and high demand for beachfront properties contribute to the elevated home prices in this tropical paradise.
5. San Diego-Carlsbad, California
San Diego and the surrounding Carlsbad area have also seen significant increases in home prices. The region’s appeal, with its pleasant climate and desirable coastal living, supports the high real estate values.
6. Salinas, California
Salinas, part of the Monterey Bay area, has experienced notable price increases. The area’s agricultural economy, combined with its proximity to both the coast and major cities, has contributed to rising home values.
7. Oxnard-Thousand Oaks-Ventura, California
This region has seen substantial growth in home prices. The Ventura County area benefits from its coastal location and the appeal of its suburban lifestyle, which attracts many buyers.
8. San Luis Obispo-Paso Robles, California
San Luis Obispo and Paso Robles have become increasingly sought-after, driving up home prices. The area’s charm, wineries, and slower pace of life contribute to its growing real estate values.
9. Boulder, Colorado
Boulder, known for its vibrant cultural scene and proximity to outdoor recreational opportunities, continues to be one of Colorado’s most expensive markets. The city’s appeal to professionals and nature enthusiasts keeps demand high.
10. Naples-Immokalee-Marco Island, Florida
In Florida, Naples and its surrounding areas are known for their luxury real estate and high-end living. The region attracts retirees and seasonal residents, which drives up property prices.
National Trends and Economic Impact
The national median cost of an existing single-family home has risen to $422,100, a 4.9% increase from the previous year. The monthly mortgage payment for an existing single-family home, with a 20% down payment, now averages $2,262, reflecting a 10.3% increase over the past year.
NAR Chief Economist Lawrence Yun highlighted the dual impact of these record-high prices. For existing homeowners, the increase in home values translates to substantial wealth gains. However, prospective buyers face significant challenges as the income required to qualify for a mortgage has nearly doubled in recent years. This disparity underscores the growing affordability crisis in the housing market, impacting both current homeowners and those trying to enter the market.
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