These cities have it all, but come with hefty price tags
Bustling job markets, iconic landmarks, trendy boutiques, and luxurious housing are hallmarks of many of America’s largest cities. However, with all of these amenities often comes a higher cost of living, bookended by some of the highest housing costs in the nation.
Housing is people’s largest monthly expense, which is why the most expensive cities to live in are often the most expensive places to buy or rent a house. Unfortunately, housing costs keep rising, meaning fewer people than ever can afford to enter the housing market and live in major cities.
But which cities are the most expensive? Let’s discover the most expensive cities in the U.S., where amenities are plentiful but buying a house is out of reach for most of the population.
What makes a city expensive?
We define an “expensive” city as one where typical housing costs exceed 30% of the area’s median monthly income, which experts consider the “cost-burdened” threshold. For example, if the median monthly income in a city is $4,000, a housing payment above $1,200 would be considered unaffordable.
To rank the most expensive cities, we analyzed the gap between home prices and local wages, focusing on the share of home listings that were affordable to someone earning the area’s median income. This is called the price-to-income ratio. Cities with the lowest percentage of affordable listings ranked as the most expensive.
1. Los Angeles, CA
1.1% of homes affordable on area’s median income
- Median household income: $93,197
- Median sale price: $885,000
- Median rent price: $2,780
- Income needed to afford median-price house: $222,084
- Cost of living: 49% higher than the national average
Los Angeles is all about sunshine, entertainment, and affluence. People flock here for the beaches and Hollywood dreams, but unfortunately, the reality often includes sky-high housing costs. Buying a house will set you back nearly $1 million, and possibly more depending on the neighborhood. The typical renter also struggles, with more than half spending over 30% of their income on rent.
Add in the necessity of a car and pricey groceries, plus incomes that often fall short, and L.A. becomes America’s most expensive city to live in. Climate risks, from heatwaves and drought, to devastating wildfires, are also playing a growing role in daily life.
For many, the energy, opportunity, and year-round sunshine make the high cost of living a trade-off they’re willing to accept – at least for now.
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2. San Diego, CA
4.1% of homes affordable on area’s median income
- Median household income: $108,352
- Median sale price: $895,000
- Median rent price: $2,690
- Income needed to afford median-price house: $224,650
- Cost of living: 45% higher than the national average
San Diego is “America’s Finest City” for good reason. Surfing, craft breweries, fresh fish tacos, historic neighborhoods, winding brick roads, and a great quality of life make for a wonderful place to live. Biotech, military, and tourism power the thriving city.
However, the beachside dream comes at a cost. Thanks to skyrocketing housing costs and a tourist-friendly dining scene, San Diego has become the second-most expensive city in the U.S. Wages have also struggled to keep up with the city’s high cost of living, even though employment has been rising. These high expenses have led some residents to move away.
Still, for those who can afford it, San Diego’s coastal charm, perfect weather, and laid-back lifestyle make it a place that’s hard to leave.
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3. Anaheim, CA
5.9% of homes affordable on area’s median income
- Median household income: $122,192
- Median sale price: $1.2 million
- Median rent price: $2,590
- Income needed to afford median-price house: $296,339
- Cost of living: 56% higher than the national average
Anaheim is best known for Disneyland, but there’s more to this city than castles and costumes. Pro sports teams, a bustling convention center, and millions of annual visitors sustain the local economy, ensuring there’s always something going on besides parades down Main Street.
However, median sale prices over $1 million and rents that have risen $105 over the past year, Anaheim is pricey. Daily expenses like groceries, entertainment, and transportation also run 10-34% above the national average. These costs make Anaheim the third-most expensive place in the U.S.
Anaheim homes for sale | Anaheim houses for rent | Anaheim apartments for rent
4. San Francisco, CA
8.6% of homes affordable on area’s median income
- Median household income: $159,665
- Median sale price: $1.4 million
- Median rent price: $2,690
- Income needed to afford median-price house: $347,699
- Cost of living: 67% higher than the national average
San Francisco pairs postcard-perfect views of the Golden Gate Bridge with world-class amenities, all packaged in a compact layout. These qualities help make San Francisco a dream destination.
However, an eye-watering cost of living now leaves many racing to find affordable housing. Tech giants have transformed the quirky city into a haven for high-earning professionals, sending housing prices sky-high. The typical house sold for nearly $1.7 million partway through 2022, which was the highest figure in the nation.
Living in San Francisco is expensive. It’s the fourth-most expensive place to live in the U.S. – it would rank higher if not for one of the highest median wages in the nation. But many people think it’s worth it. Historic streets, massive parks, iconic landmarks, and delicious cuisine are connected by one of the country’s best transit systems, meaning you won’t need a car and will struggle to run out of activities. For those who can afford it, San Francisco’s mix of innovation, culture, and scenic beauty makes the high price of entry feel like a fair trade.
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5. San Jose, CA
9.1% of homes affordable on area’s median income
- Median household income: $170,034
- Median sale price: $1.5 million
- Median rent price: $3,170
- Income needed to afford median-price house: $371,839
- Cost of living: 81% higher than the national average
San Jose sits in the heart of Silicon Valley, where tech giants feed a fast-paced economy – and soaring living costs. House and rent prices are the highest in the nation – 3-4 times the national rate – and even basic expenses like electricity and dining run 18-59% above average. The result is a place that can feel both full of opportunity and punishing on the wallet. Buying a house is available to a select few, with some affordable housing programs available.
On top of that, wages have not kept pace with rising costs of living, though, meaning San Jose could become less affordable in the future. Still, San Jose’s appeal is hard to deny. Dry weather, plenty of high-paying job opportunities, and well-maintained parks help make it a great place to call home, for those who can afford it.
San Jose homes for sale | San Jose houses for rent | San Jose apartments for rent
6. New York, NY
10.1% of homes affordable on area’s median income
- Median household income: $96,338
- Median sale price: $765,000
- Median rent price: $2,830
- Income needed to afford median-price house: $207,560
- Cost of living: 50% higher than the national average
New York City is an icon of entertainment, finance, bright lights, and around-the-clock buzz. Cultural hotspots, job opportunities, and unmatched amenities make it a global magnet and a bucket-list place for Americans to call home.
However, its miles of skyscrapers come with sky-high prices. On the whole, New York is the sixth-most expensive city in the U.S. Rents can swallow entire paychecks, and even a casual night out can feel like a splurge.
New York’s affordability varies widely depending on which borough you live in. If you’re looking in Manhattan, for example, you’ll find house prices in the millions and rents beyond what most can afford. On its own, Manhattan would likely be the most expensive city in the country, with a cost of living 131% above the national average. However, further out in Queens, housing costs nearly get cut in half, and life becomes much more affordable.
New York homes for sale | New York houses for rent | New York apartments for rent
7. Riverside, CA
10.3% of homes affordable on area’s median income
- Median household income: $90,677
- Median sale price: $588,000
- Median rent price: $2,290
- Income needed to afford median-price house: $149,689
- Cost of living: 19% higher than the national average
Riverside used to be an affordable refuge from pricey coastal cities, but rising demand has nudged living costs steadily upward. Housing is still less expensive than in Los Angeles, but that gap is shrinking, and daily expenses are following suit. Annual incomes are also lower and do not provide enough. Commuters who face long drives into neighboring metropolitan areas also feel the pinch in gas and tolls, making life a bit more taxing.
Now, Riverside is among the most expensive cities in the U.S., in part due to housing costs and relatively low incomes. Yet for those who call it home, the trade-off comes with scenic mountain views, a growing job market, and a slightly slower pace than California’s coastal hubs – especially in the cooler winter months.
Riverside homes for sale | Riverside houses for rent | Riverside apartments for rent
8. Miami, FL
10.4% of homes affordable on area’s median income
- Median household income: $71,749
- Median sale price: $560,000
- Median rent price: $2,390
- Income needed to afford median-price house: $144,817
- Cost of living: 21% higher than the national average
Miami may be all beaches, sunshine, and Latin-flavored nightlife, but it’s hardly cheap. Thanks to middling wages and booming prices, Miami is the eighth-most expensive city in the U.S. House prices have risen by $240,000 in the past five years alone, and some neighborhoods sport $10 million dollar mansions. Costs are even high if you want that iconic view of turquoise water.
Even day-to-day expenses like dining out and entertainment can balloon quickly – currently 11% above the national average – thanks to a parade of visitors and wealthy homeowners.
Yet, there’s no denying Miami’s appeal. The art deco charm of South Beach, the energy of Little Havana, and a growing international business scene keep the city buzzing around the clock. Add in year-round tropical vibes and raucous nightlife, and it’s easy to see why many decide the steep costs are worth every penny.
Miami homes for sale | Miami houses for rent | Miami apartments for rent
9. Sacramento, CA
11.6% of homes affordable on area’s median income
- Median household income: $100,152
- Median sale price: $562,000
- Median rent price: $2,000
- Income needed to afford median-price house: $144,731
- Cost of living index: 29% higher than the national average
Once viewed as the cheaper cousin to California’s coastal hubs, Sacramento has seen housing prices climb alongside a steady influx of Bay Area newcomers. Everyday expenses are 7-17% above the national average, and even hitting one of the city’s prized farm-to-fork restaurants can get pricey. Compared to the Bay Area, though, renting in Sacramento is relatively affordable.
Despite rising costs, Sacramento still retains a special kind of appeal. Towering old-growth trees line the streets, annual festivals crowd the calendar, and a laid-back vibe offers a refreshing contrast to the pace of larger metros. With riverside recreation and a rapidly diversifying economy, many find the charm of this city well worth the growing price tag.
Sacramento homes for sale | Sacramento houses for rent | Sacramento apartments for rent
10. Providence, RI
13.1% of homes affordable on area’s median income
- Median household income: $90,520
- Median sale price: $480,000
- Median rent price: $2,150
- Income needed to afford median-price house: $126,835
- Cost of living: 12% higher than the national average
A colonial city on the Atlantic, Providence might not be the first place you think of when it comes to high costs. But when you factor in median incomes, the city jumps up the list. And it’s been getting more expensive.
The city’s arts scene, top universities, and growing tech sector have drawn in new residents and businesses, leading to higher rents and home prices. The median rent has increased by over $300 in the past year, while buying will cost an extra $37,000. Now, Providence is the tenth-most expensive city in the country to live and buy a house.
However, Providence has a lot of charm and can be a wonderful place to call home. Historic neighborhoods, walkable streets, and popular events like WaterFire also keep bringing people in.
Providence homes for sale | Providence houses for rent | Providence apartments for rent
How has affordability changed?
Housing is an essential aspect of affordability, and it’s been getting more expensive. The average house price in the U.S. has increased by 32% in the past five years, with cities like Nashville nearly doubling in price.
Seven of the top ten least affordable cities in the country are in California, where wages are high, but housing costs are even higher. California is actually in an affordability crisis, which is being exacerbated by a severe housing shortage that is pushing up prices.
Rising prices across the country are primarily due to a long-term housing shortage. The U.S. hasn’t built enough homes to meet a new generation of people entering homebuying age.
Methodology
Rankings are based on a Redfin analysis of housing affordability among the 50 largest U.S. metropolitan areas. Data through January 2025.
We ranked cities on the share of home listings that were unaffordable to someone making the area’s median income. A home was considered “unaffordable” if its corresponding monthly payment was more than 30% of median monthly earnings, assuming a 20% down payment, typical taxes and fees, and a 30-year mortgage. In short, we ranked places with the largest differences between housing costs and wages.
We also added supplemental data that did not influence rankings: the median household income, median house price, median rent price, the income required to purchase a typical house, and the cost of living compared to the national average. This data came from Redfin and the U.S. Census Bureau.
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