The Most Expensive Real Estate Markets in the United States

Real estate values in America’s top cities have reached stratospheric levels. From the tech enclaves of Silicon Valley to the financial capital of New York, home prices in these markets far exceed the national median. High demand, limited supply, and abundant wealth creation have made places like San Francisco, Manhattan, and San Jose the most expensive real estate markets in the United States. Below we explore the top luxury housing markets, compare their prices, and examine the trends driving their growth.

Key Macro Trends Driving Price Growth

• Limited Housing Supply: Many expensive cities face chronic housing shortages due to geographic constraints and strict zoning. For example, San Francisco is bounded by water and has tight development rules, leading to persistent undersupply of homes. Nationally, housing inventory remains around 3.5 months – below the 5–6 months considered a balanced market, which means demand still outstrips supply ( Bankrate ). This scarcity of available homes pushes prices upward in top markets.
• Strong Demand & High Incomes: These cities are major job hubs in tech, finance, and government, attracting well-paid professionals. San Jose (Silicon Valley) boasts one of the highest median household incomes ($153,000+) ( Kiplinger ), fueling its $1.53 million typical home value ( Zillow ). Similarly, high salaries in San Francisco, New York, Boston, and Seattle enable buyers to bid up home prices far beyond national norms.
• Urban Attractions and Lifestyle: Gateway cities offer cultural amenities, top-rated schools, and infrastructure that command a premium. Coastal California cities like San Diego and Honolulu combine economic opportunity with desirable climate and lifestyle, keeping demand resilient for the limited housing available. Buyers are willing to pay extra per square foot to enjoy urban convenience, ocean views, or historic neighborhoods.
• Global Investor Influence: Major U.S. cities are seen as safe-haven markets for international investors. Foreign buyers often target luxury properties in New York, Los Angeles, Miami, and San Francisco. In fact, the U.S. is home to over half of the world’s most competitive real estate markets ( Offices.net ), and global capital flows into these cities for both residential and commercial assets. This international demand adds price pressure, especially in the high-end condo and luxury home segments.
• Low Rates and Ample Capital: Years of low interest rates through 2021 enabled buyers to afford higher-priced homes, accelerating price growth. Even with recent rate rises, many affluent buyers in these markets pay cash or have significant equity, so buyer competition remains fierce. Ample venture capital and stock market wealth (particularly in tech centers like San Francisco and Seattle) has also funneled into real estate, driving up prices.

Top 12 Most Expensive U.S. Real Estate Markets

Let’s take a closer look at a dozen of the priciest real estate markets in the country. These cities and metro areas consistently rank at the top for home values. We compare their typical home prices, cost per square foot, and even commercial rents to provide a full picture of how costly these markets are for both residents and businesses.

Table: A comparison of the most expensive U.S. real estate markets. Home price figures are approximate median values in late 2024/early 2025. Price per square foot refers to median residential sale prices. Office rents are average asking rents for office space (annual, per square foot) in each city’s metro area.

San Jose, California

Silicon Valley’s priciest enclave. San Jose tops the charts with a typical home value around $1.53 million . Fueled by tech wealth from companies like Google and Apple, the San Jose area has extremely high incomes and a severe housing shortfall. The median price per square foot is about $845 – the highest in the nation – reflecting buyers’ willingness to pay a premium for limited space . Despite some recent market cooling, San Jose remains profoundly expensive, with single-family homes routinely selling for $1–2 million+ in ordinary neighborhoods.

Commercial real estate is also costly. Office space in Silicon Valley averages over $40 per sq. ft. annually , on par with major financial centers. Low vacancy and constant startup formation keep commercial rents high. Overall, San Jose’s combination of top-tier tech jobs, scarce land, and investment flows makes it the most expensive real estate market in the U.S. today.

San Francisco, California

The perennial housing crunch. Long known for its sky-high prices, San Francisco continues to have one of the highest median home prices at around $1.3 million . In fact, half of the homes in San Francisco sell for over $1.3M ( Kiplinger ). Dense development on a 7x7 mile peninsula and strict zoning have kept supply extremely limited. San Francisco’s price per square foot (roughly $700) is second only to Silicon Valley. Even modest single-family homes often top $1 million, and luxury condos with Bay views command far more.

The city’s booming tech sector and cultural vibrancy sustain demand. Office lease rates average about $60 per sq. ft. – making San Francisco one of the most expensive places in the country to rent office space as well. High business rents, coupled with housing costs, reflect the intense competition for space. Despite challenges like recent out-migration, San Francisco’s real estate remains among the priciest and most sought-after in the world.

New York City (Manhattan)

The nation’s ultimate real estate market. Manhattan has some of the most expensive real estate on the planet. The average price of a Manhattan home is around $2.8 million ( Kiplinger )(helped by many luxury sales), and the median value is just above $1 million ( Kiplinger ). In practical terms, this means even a small one-bedroom condo can easily cost seven figures. Prices average roughly $1,200 per square foot in Manhattan’s core neighborhoods ( Realtor ). Limited land on the island, coupled with global demand, keeps values sky-high.

Including all five boroughs, the New York City median home price is lower (around $800k ( Zillow )) due to outer boroughs, but Manhattan anchors NYC’s status as a top-tier market. Commercial rents for prime Manhattan offices are the highest in the U.S., averaging $70–$80 per sq. ft. in Midtown. International investors, Wall Street wealth, and the allure of NYC ensure that Manhattan real estate remains both extremely expensive and resilient over time.

Orange County, California

Southern California luxury enclaves. Orange County – home to cities like Newport Beach, Irvine, and Anaheim – is not a single city but a wealthy region that ranks among the most expensive U.S. markets. The median home value across Orange County is about $1.18 million , and many upscale communities have averages far higher (Newport Beach’s median is around $2 million). Coastal location and master-planned communities create high price floors. For instance, the typical home in Huntington Beach tops $1.35M ( Zillow ).

Orange County’s economy and real estate are tied to Los Angeles but with its own concentrations of tech, biotech, and finance. Commercial rents are slightly lower than LA’s Westside – office space averages in the low-$30s per sq. ft. range – but still significant. Overall, “The O.C.” offers luxury suburban living with strong buyer demand, keeping it firmly in the ranks of the priciest U.S. markets.

Los Angeles, California

High prices across a sprawling metropolis. Los Angeles features a wide range of home values, but its prime areas are extremely expensive. The city’s median home price recently hit ~$1 million , and the overall LA metro median is around $838k ( Realtor ). In elite neighborhoods like Beverly Hills, Bel-Air, or Malibu, estates trade for tens of millions. Even middle-class areas see homes routinely above $1–2M. LA’s median price per square foot (around $600–$650) is among the nation’s highest, reflecting California’s construction costs and demand .

LA’s economy (entertainment, tech, trade, etc.) draws both domestic and international buyers. Commercial real estate is also pricey: top office rents in Santa Monica or Century City run $50+ per sq. ft., with the metro average around $41 . While Los Angeles has more land to build on than San Francisco, its desirable coastal and hillside areas are fully built-out, keeping home prices elevated. The combination of Hollywood glamour and business growth ensures LA remains one of the most expensive markets.

San Diego, California

Sunshine and high housing costs. San Diego has surged into the ranks of expensive cities, with a median home price around $900k–$1M . It was recently named one of the priciest cities for young homebuyers ( Sofi ). Desirable climate, beaches, and a growing tech/life-sciences economy contribute to strong housing demand. San Diego’s median price per square foot (roughly $700 ( Realtor)) rivals Los Angeles. Many single-family homes near the coast easily sell for $1.5M or more.

The region’s limited developable land – bounded by the ocean, military bases, and the Mexican border – constrains new supply. On the commercial side, office rents average around $50/sq. ft. in prime submarkets , reflecting a healthy local economy. San Diego’s mix of lifestyle appeal and high-paying industries (biotech, defense, etc.) virtually guarantees that it will remain one of America’s most expensive housing markets.

Seattle, Washington

Tech boomtown turned pricey market. Seattle’s home prices have climbed sharply over the past decade thanks to companies like Amazon and Microsoft minting new millionaires. The typical Seattle home now costs around $900k , and bidding wars are common for desirable properties. By one measure, Seattle’s prices have a home price-to-income ratio near 7.2, marking it as one of the least affordable among large U.S. cities ( Construction Coverage ). The city’s median price per square foot (~$600) remains very high for a non-California market.

Supply is constrained by Seattle’s geography (sandwiched between Puget Sound and Lake Washington) and growth management policies. Tech salaries provide the purchasing power to sustain high prices. On the commercial front, Seattle’s office rents average $37 per sq. ft. – relatively affordable compared to SF or NYC, but significant within the region. Overall, Seattle has firmly joined the top tier of expensive U.S. housing markets in recent years.

Boston, Massachusetts

Historic city with premium prices. Boston has long had expensive real estate, and it continues to rank high with a median home value around $800k (the broader metro median is slightly lower). In the core Boston/Cambridge area, small condos often sell for $700k+, and single-family homes in good neighborhoods exceed $1M. Downtown Boston’s median price per square foot is over $1,000 in many cases, reflecting limited supply and strong demand from professionals and students.

Factors driving Boston’s prices include world-class universities, a thriving biotech and finance sector, and very little room for new construction in the city. Office lease rates in Boston are about $49 per sq. ft. for top space – high, though not as extreme as NYC. With its rich history and stable economic base, Boston consistently remains one of the most expensive real estate markets in the U.S., particularly in its downtown and inner suburbs.

Honolulu, Hawaii

Paradise comes at a premium. Honolulu offers a unique case: while Zillow reports the typical home value around $770k , that figure includes many condos. Single-family homes on Oahu often cost well over $1 million, and the average price of a house in Honolulu is estimated near $1.7 million . The price per square foot for a detached home can easily exceed $1,000 – extremely high by U.S. standards.

The drivers are straightforward: Hawaii’s strict land-use laws and finite island land supply limit housing, while demand remains steady from local families, military personnel, and offshore buyers (especially from Asia and the U.S. mainland). Honolulu’s economy is tourism-based with relatively modest incomes, yet even modest homes in Honolulu cost triple the national average. Commercial real estate is similarly pricey – retail rents in Waikiki and office rents downtown command top dollar (office averages ~$40/sq. ft.). Honolulu consistently ranks as one of the most expensive housing markets, highlighting how location and supply constraints can trump local income factors.

Washington, D.C.

The capital of high housing costs. The Washington, D.C. metro area is often overlooked in discussions of pricey cities, but it remains very expensive. The median home price in the District is around $620k , and in close-in suburbs it’s even higher (the Washington metro median is about $550k). Affluent areas like NW D.C., Arlington, and Bethesda see home values well over $1 million. Limited inventory in desirable neighborhoods like Capitol Hill or Georgetown contributes to bidding wars. The typical price per square foot in D.C. proper is about $500+ ( Realtor ), which is high given the region’s mix of housing types.

As the seat of the federal government, D.C. benefits from a stable job market and steady influx of professionals. Commercial property in D.C. is also costly – office rents average ~$40 per sq. ft. and trophy buildings near the White House lease for considerably more. While home price growth in D.C. has leveled off recently, the city’s status as a global capital ensures that real estate values remain among the highest in the nation.

Investment Outlook for Luxury “Gateway” Cities

• Resilience and Long-Term Growth: Investors often favor gateway cities (New York, Los Angeles, San Francisco, etc.) because these markets have historically demonstrated resilient property values. Over decades, despite economic cycles, the trend in these cities has been upward. Limited land and persistent demand create a floor under prices. For long-term investors, owning real estate in top global cities is seen as a relatively safe bet for appreciation.
• Strong Rental Demand: Luxury cities usually have robust rental markets. High home prices mean many professionals rent, ensuring consistent demand for well-located apartments and condos. For example, Manhattan rents are among the highest in the U.S., which benefits landlords and investors who own property. Likewise, cities like Boston, Seattle, and San Jose have large populations of young renters in the workforce, supporting solid rental yields even as property values rise.
• Global Appeal and Liquidity: Top-tier cities attract not only local buyers but also domestic and international investors. This broad buyer pool increases liquidity – assets can be sold more readily, even in downturns, compared to smaller markets. International buyers view U.S. gateway city properties as a store of wealth. This global appeal can stabilize prices and provide exit opportunities for investors. Owning a condo in Miami or an office building in Manhattan means tapping into a worldwide market of potential buyers.
• Economic Hubs with Diverse Industries: Gateway cities are major economic hubs with diverse industries (finance, tech, entertainment, education, government). This diversity can buffer local real estate against sector-specific downturns. For instance, while tech layoffs might cool San Francisco briefly, the city’s role as a finance and biotech center helps sustain real estate values. The same holds for New York’s mix of finance, media, and tech, or Los Angeles’ blend of entertainment and trade. A diversified economic base gives investors confidence that these markets will remain robust.
• Prestige and Limited Competition: Finally, investing in high-end properties in prestigious locations can confer a competitive advantage. There are only so many penthouses overlooking Central Park or oceanfront estates in Orange County. Such unique, trophy assets often see outsized demand from ultra-high-net-worth individuals. For investors who can acquire these properties, there’s potential for significant capital appreciation when selling to the next buyer seeking a rare asset. In short, the scarcity and prestige factor in luxury markets can lead to big payoffs.

In summary, while the most expensive real estate markets come with high entry costs and can experience short-term volatility, they offer attractive fundamentals for investors and homeowners alike. These luxury gateway cities tend to lead the nation in economic opportunity and cultural influence. For many, the investment case lies in their proven long-term growth, rental income potential, and enduring desirability on the world stage.

Featured Listings

Interested in exploring investment opportunities in these top markets? Here are some curated searches for commercial properties in the most expensive U.S. real estate markets on Brevitas:

• San Francisco Commercial Listings – Brevitas
• New York City (Manhattan) Commercial Listings – Brevitas
• San Jose Commercial Listings – Brevitas
• Los Angeles Commercial Listings – Brevitas
• Boston Commercial Listings – Brevitas
• Washington, D.C. Commercial Listings – Brevitas
• Seattle Commercial Listings – Brevitas
• Honolulu Commercial Listings – Brevitas
• San Diego Commercial Listings – Brevitas
• Miami Commercial Listings – Brevitas

References

• Zillow – San Francisco, CA Home Values
• Zillow – San Jose, CA Home Values
• Zillow – New York, NY Home Values
• Zillow – Los Angeles, CA Home Values
• Zillow – Boston, MA Home Values
• Zillow – Seattle, WA Home Values
• Zillow – Honolulu, HI Home Values
• NAR – Foreign Investment in U.S. Homes (2024)
• Offices.net – Commercial Property Prices & Rents by City (2024)
• Kiplinger – 15 Most Expensive Housing Markets (2024)
• Redfin – Los Angeles Housing Market Trends
• Bankrate – Why Is There a Housing Shortage? (2025)
• Yahoo Finance – Cities With Most Expensive Homes per Square Foot (2023)