The COVID-19 pandemic has ushered in an unprecedented surge in demand for homeownership in the United States. Home inventory, however, is at a record low, as is the average time homes remain for sale on the market. Meanwhile, home prices and the share of homes selling above asking price are at record highs.
Of course, in some parts of the country, exorbitant home prices are nothing new. Even before the pandemic, there were dozens of cities where most homes were valued at over $1 million.
Using data on median home value from the U.S. Census Bureau, 24/7 Wall St. identified the 50 most expensive cities to buy a home in the United States. In each of the cities on this list, the value of the typical home ranges anywhere from about $883,000 to over $2 million. We included cities, towns, villages, and unincorporated communities with populations of at least 25,000 in our analysis.
Not surprisingly, the cities on this list tend to be relatively wealthy areas, with median annual household incomes that far exceed the $62,843 national median. Still, even with higher incomes, high home values make it more likely that residents would need to take out a mortgage. All but four cities on this list are home to a larger share of homeowners who finance their home with the help of a mortgage than the national average of $62.7%. This is the American city with the most foreclosures.
The vast majority of cities on this list are located in California. Much of the state is facing a housing affordability crisis as housing supplies are low, demand for living in much of the state is high, and land, labor, and raw materials are more expensive than average. Here is a look at the cities where home values are rising the fastest.