Key takeaways
- San Francisco, Anaheim, and Los Angeles are the most expensive cities in the U.S., where median earners need to spend over 60% of their income on housing.
- The majority of the most expensive places to live are located on the coasts—led by California, which accounts for seven of the top ten priciest cities.
- House prices skyrocketed during the pandemic and have only recently started to level out, straining budgets and putting a lid on demand in many places.
Buying a house today is a pipe dream for many Americans. Monthly housing payments have hovered near record highs for years as mortgage rates and house prices remain elevated. The typical homebuyer today spends nearly 40% of their income on housing, according to Redfin data—well above the recommended threshold. To adapt, many people are instead choosing to rent long-term or leaning on family for help with down payments.
Nearly all of the country’s most expensive major housing markets are concentrated along the coasts, where limited space and tight supply have long pushed prices upward. Prior to the pandemic, though, costs were more manageable. It wasn’t until after the pandemic housing boom that it became largely unaffordable to buy a home, contributing to a prolonged slowdown that has only recently started to recover.
So, which cities are the most expensive? Why is housing so expensive? Let’s discover the most expensive cities to live in and buy a house in 2026, where locals need to spend over 35% of their income on housing.
The 10 most expensive cities in the U.S.
A majority of people today spend more than 30% of their monthly income on housing, and in some places, they spend nearly half. The most expensive housing markets in the nation are generally limited to the highest earners. Median-income homebuyers are effectively priced out—a major reason for the years of sluggish demand.
| City | Share of income required to afford a typical home | Median household income | Median sale 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 analyzed where housing payments require between 30-35% of a typical income—technically unaffordable, but not enough to meet our threshold. Examples include Columbus (30.1%), Washington, D.C. (31.9%), Phoenix (32.9%), and Nashville (34.1%).
Cities where affordability is declining the most
“Housing markets across the country are undergoing a long, slow reset from the pandemic, when prices were climbing by 10% every month,” said Daryl Fairweather, Redfin Chief Economist. “Homebuyers in 2020-2022 were hungry to take advantage of low-rate mortgages, and home sellers were regularly getting offers 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, affordability is improving in all but the most competitive markets, as house prices rise more slowly than incomes. One notable mention is San Francisco: Even though it recently became the most expensive housing market in America, demand has continued to climb due to an influx of AI wealth.
Coastal metros are the least affordable places to buy a house
The East and West Coast are home to a majority of the most expensive housing markets in the U.S. These areas have long been the most expensive places because supply has not kept up with demand over the years. Homebuilders haven’t been as active in coastal hubs due to strict zoning laws and more expensive land, making it less appealing to build housing and contributing to a shortage. Wealth concentration has also played a role.
Recently, though, some of the most expensive cities have 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 improving primarily because more sellers are listing their homes than buyers are buying, boosting inventory. Homeownership is still out of reach for most people, but the cost gap is beginning to narrow.
Why is housing so expensive?
There are three primary factors behind today’s high house prices:
- Limited housing supply
- Strict zoning laws
- Investor market share
While zoning laws and investor market share play a role in today’s house prices, the largest driver is a chronic inventory shortage. There aren’t enough homes for people who want them, and not enough homebuilding to meet demand.
This pattern began during the Great Recession and was exacerbated during the pandemic homebuying frenzy, when homebuyers capitalized on ultra-low mortgage rates. Now, demand has dropped as priced-out buyers wait on the sidelines, putting a lid on price growth and helping affordability slowly improve. But it will take years before costs return to “normal.”
>> Read: Why Are Houses So Expensive?
Methodology
Rankings expand on a May 2026 Redfin analysis of housing affordability by analyzing 96 of the largest U.S. metros (“cities”). The analysis focused on the share of income a median-income resident needs to spend every month to afford a typical home. A home was considered “unaffordable” if its corresponding monthly payment was more than 35% of median monthly earnings, assuming a 20% down payment, typical taxes and fees, and a 30-year mortgage. Cities with the highest monthly income requirements ranked as the least affordable.
All data came from a Redfin analysis of MLS, U.S. Census, and Atlanta Fed data.
