San Jose, California, ranks as the most expensive major city in the United States to purchase a home, with average prices nearing $1.43 million, according to a new study by Badeloft USA.
The study, which analyzed 40 major cities across the nation, highlights the continued pressure high home prices are placing on urban homebuyers.
Using data from sources including Zillow.com, World Population Review, Numbeo, and the 2022 American Home Size Index survey, Badeloft USA’s report evaluated cities based on average home price, house size, and the number of homes listed.
California continues to dominate the top of the ranking, with San Francisco (ranked second), San Diego (third), and Los Angeles (fourth) also listed among the 10 most expensive major cities for homebuyers.
“San Jose ranks as the most expensive housing market, with homes averaging nearly $1.43 million,” the study noted. “Other California cities—San Francisco, San Diego, and Los Angeles—dominate the top of the list, reflecting the state’s ongoing housing affordability challenges.”
In addition to the California metros, other cities with average home prices well over $750,000 include Seattle (ranked fifth), Honolulu (sixth), and New York City (seventh). “For buyers in these areas, price remains a major barrier—regardless of how many other people are looking,” the study stated.
Boston (ranked eighth), Washington, D.C., (ninth), and Miami (10th) rounded out the top 10 ranking of the most expensive major hubs to buy a property.
Washington, D.C., was also identified in the study as the most sought-after major city for home ownership. Other cities in the top tier of affordability and desirability included San Jose, San Diego, Los Angeles, and Boston.
The affordability crisis highlighted in the Badeloft USA report aligns with broader national housing trends.
A 2024 report from the Joint Center for Housing Studies at Harvard University found that home prices have surged in 97 of the top 100 U.S. housing markets. The steepest price increases were recorded in the Northeast region and the Midwest, according to the analysis.
Many prospective buyers have been sidelined from homeownership by elevated home prices and rising interest rates.
For renters, the situation remains just as dire. Nearly half of U.S. renter households are also cost-burdened, meaning they spend over 30 percent of their income on rent. About 12.1 million renters are classified as “severely cost-burdened,” spending more than half their income on housing, according to Harvard’s report.
Top 10 Most Expensive Major U.S. Cities To Buy a House
- San Jose – $1,426,853.00 (average house price)
- San Francisco – $1,242,637
- San Diego – $1,005,710
- Los Angeles – $948,383
- Seattle – $851,513
- Honolulu – $773,409
- New York City – $763,861
- Boston – $745,827
- Washington, D.C. – $589,180
- Miami – $584,695
Source: Based on a study by Badeloft USA, which ranked 40 major U.S. cities according to a range of criteria, including average home price, size, availability, and the cost-of-living.
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