The 10 Most Expensive Cities in the U.S. in 2026

Key takeaways

• Los Angeles, Anaheim, and San Diego are the most expensive cities in the U.S., with sky-high prices leaving fewer than 10% of homes affordable to locals.
• The most expensive places to live are all located on the coasts—led by California, which accounts for six of the top ten.
• 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.

Bustling neighborhoods, iconic landmarks, and an abundance of amenities are hallmarks of America’s largest cities—but in some places, these benefits come at a cost. All of the country’s most expensive major housing markets are concentrated on 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 in many coastal cities, contributing to a prolonged slowdown that is only just starting to recover. 

So, which cities are the most expensive? When will affordability improve? Let’s discover the most expensive cities to live in and buy a house in 2026, where housing can be exceptionally expensive.

The 10 most expensive cities in the U.S.

1. Los Angeles, CA

2.0% of homes affordable on area’s median income | +0.8% year over year

• Median household income: $97,775
• Median sale price: $930,000
• Median rent price: $2,682
• Income needed to afford median-priced home: $221,646
• Share of income needed to afford a typical home: 68.0%
• Cost of living: 52% higher than the national average

Los Angeles is a city of sunshine, glamour, and affluence, drawing people in with its beaches and Hollywood dreams. But those perks come at a cost: Buying a home will set you back close to $1 million, and often more depending on the neighborhood. This lack of affordability is one reason L.A. has lost tens of thousands of residents since 2024.

Add in the necessity of a car and pricey groceries, plus incomes that largely fall short, and Los Angeles becomes America’s most expensive place to live. Climate risks, namely heatwaves, drought, and wildfires, are also playing a growing role in daily life.

Los Angeles homes for sale | Los Angeles houses for rent | Lost Angeles apartments for rent

2. Anaheim, CA

6.6% of homes affordable on area’s median income | +1.7% year over year

• Median household income: $126,178
• Median sale price: $1.25 million
• Median rent price: $2,500
• Income needed to afford median-priced home: $291,828
• Share of income needed to afford a typical home: 69.4%
• Cost of living: 64% higher than the national average

Anaheim is best known for Disneyland, but there’s more to the 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, with median sale prices topping $1 million and rent costs running above average, affordability has become a major challenge for locals—one reason residents across Orange County are pushing for rent control. Daily expenses like groceries, entertainment, and transportation also run 10-34% above the national average.

Anaheim homes for sale | Anaheim houses for rent | Anaheim apartments for rent

3. San Diego, CA

7.2% of homes affordable on area’s median income | +2.6% year over year

• Median household income: $115,304
• Median sale price: $930,000
• Median rent price: $3,033
• Income needed to afford median-priced home: $221,807
• Share of income needed to afford a typical home: 57.7%
• Cost of living: 47% higher than the national average

San Diego is “America’s Finest City” for good reason. Surfing, craft breweries, fresh fish tacos, and pleasant year-round weather make for a generally great quality of life. Biotech, military, and tourism power the job market.

However, the beachside dream comes at a cost—namely, the third-most expensive housing market in the nation. Prices surged during the pandemic and have only recently begun to cool. They have been outpacing wages for years and are a major reason why San Diego remains one of the most expensive cities in the nation.

San Diego homes for sale | San Diego houses for rent | San Diego apartments for rent

4. San Francisco, CA

7.5% of homes affordable on area’s median income | +0.9% year over year

• Median household income: $162,117
• Median sale price: $1.73 million
• Median rent price: $3,950
• Income needed to afford median-priced home: $405,307
• Share of income needed to afford a typical home: 75.0%
• Cost of living: 64% higher than the national average

San Francisco pairs postcard-perfect views of the Golden Gate Bridge with world-class amenities, all packaged in a walkable layout. However, an eye-watering cost of living has made it a difficult place for most residents to afford. 

Tech giants have transformed the quirky city into a haven for high-earning professionals, sending housing prices sky-high over the past 20 years. The AI boom has only intensified demand in the Bay Area, helping SF regain its title as the most expensive housing market in the country. For those who can swing the cost, though, San Francisco’s mix of innovation, culture, and scenic beauty makes the high price of entry feel like a fair trade.

San Francisco homes for sale | San Francisco houses for rent | San Francisco apartments for rent

5. San Jose, CA

9.6% of homes affordable on area’s median income | +2.3% year over year

• Median household income: $176,401
• Median sale price: $1.65 million
• Median rent price: $3,100
• Income needed to afford median-priced home: $389,327
• Share of income needed to afford a typical home: 66.2%
• Cost of living: 84% higher than the national average

San Jose sits in the heart of Silicon Valley, where tech giants feed a fast-paced economy and subsequent soaring living costs. The city has the second-most expensive housing market in the nation, and basic expenses like electricity and dining run 18-59% above average. The result is a place that can feel both full of opportunity and impossible to afford for anyone but the tech crowd 

Still, San Jose’s appeal is hard to deny. Dry weather, high-paying jobs, and well-maintained parks help make it a great place to call home.

San Jose homes for sale | San Jose houses for rent | San Jose apartments for rent

6. New York, NY

9.9% of homes affordable on area’s median income | +1.7% year over year

• Median household income: $98,287
• Median sale price: $790,000
• Median rent price: $3,606
• Income needed to afford median-priced home: $201,774
• Share of income needed to afford a typical home: 62.0%
• Cost of living: 86% higher than the national average

New York City’s miles of skyscrapers, around-the-clock buzz, and global appeal also come with sky-high prices. America’s largest city is the sixth-most expensive, where buying can cost millions, rents often swallow entire paychecks, and a casual night out can feel like a splurge.

However, 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 a cost of living 139% above the national average. On the other hand, further out in Queens, housing costs get cut in half (although they are still often unaffordable).

New York homes for sale | New York houses for rent | New York apartments for rent

7. Providence, RI

11.8% of homes affordable on area’s median income | +0.5% year over year

• Median household income: $94,620
• Median sale price: $530,000
• Median rent price: $2,150
• Income needed to afford median-priced home: $131,313
• Share of income needed to afford a typical home: 41.6%
• Cost of living: 11% higher than the national average

A colonial city set on the Atlantic, Providence might not be the first place that comes to mind when thinking of the most expensive housing markets. But years of strong competition and tight supply have led to rapid price growth for buyers and renters—and it’s showing little sign of slowing down. 

For example, homebuyers are dealing with prices more than 33% higher than they were in 2022—more than three times the nationwide growth rate. Even so, Providence is full of charm and can be a wonderful place to call home, with historic neighborhoods, walkable streets, and popular events like WaterFire.

Providence homes for sale | Providence houses for rent | Providence apartments for rent

8. Boston, MA

13.5% of homes affordable on area’s median income | +2.8% year over year

• Median household income: $127,467
• Median sale price: $767,750
• Median rent price: $3,500
• Income needed to afford median-priced home: $190,299
• Share of income needed to afford a typical home: 44.8%
• Cost of living: 48% higher than the national average

Boston has been among the most expensive places to live in the U.S. for years, and 2026 is no different. A combination of limited space, insufficient homebuilding, and a strong job market centered around biotechnology keeps demand high. As a result, both home prices and rents have risen faster than the median income for years. 

Boston’s pricey housing has begun affecting migration trends, with more long-time residents and young adults moving away in search of affordability. Regardless, the city can be a great place to live, with centuries-old parks, New England personalities, and a gorgeous waterfront.

Boston homes for sale | Boston houses for rent | Boston apartments for rent

9. Riverside, CA

13.6% of homes affordable on area’s median income | +2.2% year over year

• Median household income: $97,116
• Median sale price: $588,000
• Median rent price: $2,200
• Income needed to afford median-priced home: $142,507
• Share of income needed to afford a typical home: 44.0%
• Cost of living: 16% higher than the national average

Riverside used to be an affordable refuge from pricey coastal cities, but rising demand has nudged up living costs at a fast clip for years. Housing is still less expensive than in Los Angeles, but the gap is shrinking. Annual incomes are also lower and do not provide enough for many residents. 

Adding to the costs, commuters who face long drives into nearby cities feel the pinch in gas prices—especially so with the prolonged conflict in the Middle East. Still, for many residents, the scenic mountain views, slower pace of life, and growing job market are worth the trade-off.

Riverside homes for sale | Riverside houses for rent | Riverside apartments for rent

10. Nassau County, NY

14.2% of homes affordable on area’s median income | +2.1% year over year

• Median household income: $149,811
• Median sale price: $745,000
• Median rent price: Unavailable
• Income needed to afford median-priced home: $197,357
• Share of income needed to afford a typical home: 39.5%
• Cost of living: 49% higher than the national average

Nassau County is a large area in central Long Island that includes many historic cities like Hempstead and Massapequa. Home to colonial architecture, quiet streets, sandy beaches, and bustling downtowns, it’s no wonder locals love to live in the area. 

Unfortunately, the cost of living in Nassau County has become simply out of reach for many, as competition for a very limited supply of housing has pushed costs to unaffordable levels. Add in high auxiliary costs like property taxes, and residents are grappling with serious expenses. Now, the area is the tenth-most expensive housing market in the nation.

Nassau County homes for sale | Nassau County houses for rent | Nassau County apartments for rent

Why is housing so expensive?

There are three primary factors behind today’s high house prices:

1. Limited housing supply
2. Strict zoning laws
3. 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. Today, limited demand has put a lid on price growth, but it will take years before costs return to “normal.” 

>> Read: Why Are Houses So Expensive?

Methodology

Rankings are based on an April 2026 Redfin analysis of housing affordability across the 50 largest U.S. core-based statistical areas (“cities,” ”metros”).  The analysis ranked cities on the share of home listings that were unaffordable to someone earning 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. 

All housing data came from a Redfin analysis of MLS and U.S. Census data. Rental data came from Zillow. Cost-of-living data came from The Cost of Living Index (COLI) from the Council for Community and Economic Research. Cost of living in Anaheim used Orange County data.

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