According to a recent study by the internet digital financial advisory platform SmartAsset, half of the top 10 most expensive housing markets in 2024 in the United States are located in California.
San Jose, located in the central part of Silicon Valley, took the top spot as the most expensive place to buy a house in the United States in 2024. The median home sales price in 2024 exceeded $1.5 million, with housing prices in the area rising by 12% compared to the previous year.
According to data from the National Association of Realtors (NAR), approximately 93% of metropolitan areas (205 out of 221 cities) saw an increase in housing prices in the first quarter of 2024. Among the 221 tracked metropolitan areas, 30% experienced double-digit price increases.
To afford a typical home in the San Jose area, one would need an annual income of $468,252. The average income required to purchase a typical home in the United States is $103,835. Housing prices in the Midwest and South are even more affordable, with annual incomes needed to buy a home at $74,967 and $95,511 respectively.
Lawrence Yun, Chief Economist at NAR, stated in a press release from NAR, “Surprisingly, despite facing the highest mortgage rates in twenty years, housing prices in over 90% of metropolitan areas nationwide continued to increase. The primary reason for the current housing price increase in the market is the shortage of housing supply, unable to meet the full demand.”
According to a report by CNBC, California has long faced housing shortages: demand far exceeds the state’s annual pace of housing construction. What is happening in California is a microcosm of a national trend, with current home prices rising by 47% compared to the beginning of 2020.
Here are the top 10 most expensive places to buy a house in the United States in 2024:
– Median Home Sales Price: $1,502,362
– Increase Since 2023: 12.9%
– Increase Since 2019: 41%
– Median Home Sales Price: $1,132,315
– Increase Since 2023: 10.8%
– Increase Since 2019: 30.5%
– Median Home Sales Price: $925,783
– Increase Since 2023: 10.6%
– Increase Since 2019: 47.9%
– Median Home Sales Price: $876,056
– Increase Since 2023: 9.4%
– Increase Since 2019: 55.1%
– Median Home Sales Price: $844,806
– Increase Since 2023: 8.2%
– Increase Since 2019: 43%
– Median Home Sales Price: $696,729
– Increase Since 2023: 6.6%
– Increase Since 2019: 23.4%
– Median Home Sales Price: $692,195
– Increase Since 2023: 10.5%
– Increase Since 2019: 53%
– Median Home Sales Price: $648,108
– Increase Since 2023: 8.1%
– Increase Since 2019: 47.9%
– Median Home Sales Price: $579,117
– Increase Since 2023: 10.7%
– Increase Since 2019: 49.2%
– Median Home Sales Price: $573,090
– Increase Since 2023: 3.0%
– Increase Since 2019: 45.3%