In July 2025, a detailed examination of the American real estate landscape unveiled the steepest metropolitan areas for home purchasing. Soaring property valuations, restricted housing availability, and sustained high mortgage interest rates have collectively made property ownership an elusive goal for numerous individuals. This challenge is particularly acute in specific urban centers where even a moderately sized residence demands a price tag exceeding half a million dollars.
Based on July 2025 data compiled by Realtor.com, Investopedia meticulously identified the top ten most expensive metropolitan regions based on their median listing prices. This analysis also calculated the necessary annual income for an individual to maintain housing expenditures at a sustainable 30% of their earnings. The findings prominently feature large urban centers and state capitals, with a distinct geographical concentration in the Western and Northeastern United States.
\nNo Southern or Midwestern cities appeared on this exclusive list, reinforcing a clear regional divide in housing costs. Six of the ten most expensive metro areas are found in the West, with California alone accounting for five of these top-tier markets. The remaining four are located in the Northeast. These figures underscore the financial hurdles aspiring homeowners face in these high-demand locales.
\nAt the forefront of this list is the Washington, D.C. metropolitan area, which includes Arlington and Alexandria. Here, the median listing price stood at $612,500. Factoring in loan amounts, a typical 20% down payment, prevailing mortgage rates, property taxes, and home insurance, the estimated monthly housing costs hover around $3,700. To keep these expenses within 30% of income, an annual income of approximately $148,570 is required.
\nFollowing closely, Sacramento, Roseville, and Folsom in California demonstrate the state's pervasive high housing costs. With a median listing price of $625,000, the necessary annual income for this region climbs to $151,709. Despite having the lowest median listing price among the top ten at $604,950, Providence, Rhode Island, along with Warwick, demands a higher annual income of $155,460 due to elevated average mortgage rates and property taxes. Monthly costs here can reach nearly $3,900.
\nFurther up the scale, the Seattle, Tacoma, and Bellevue area in Washington boasts a median list price of $785,463, necessitating an annual income of $191,093. This is a significant jump of approximately $40,000 compared to the previously mentioned metros. The New York, Newark, and Jersey City metropolitan area, with a median list price of $775,000, requires an even higher annual income of $195,591, primarily driven by substantial property taxes.
\nBoston, Cambridge, and Newton in Massachusetts represent the priciest Northeastern market, featuring a median home price of $841,950, translating to a required annual income of $211,288. The remaining spots on this list are exclusively Californian, highlighting the state’s dominant role in high-cost housing. San Diego, Chula Vista, and Carlsbad record a median listing price of $987,500, demanding an annual income of $234,712.
\nThe San Francisco, Oakland, and Fremont area closely trails with a median price of $990,000. Given similar mortgage and tax structures within the state, the required income for this metro is $235,284, just marginally higher than San Diego. Breaking the million-dollar threshold, Los Angeles, Long Beach, and Anaheim show a median listing price of $1,148,483, pushing the required annual income to approximately $271,573.
\nTopping the list is the San Jose, Sunnyvale, and Santa Clara metro area, which registered an astonishing average listing price of $1,373,750 in July. This figure is more than double the median price of the less expensive metros in the top ten and over triple the national median of $440,950. To secure a home in this region, a prospective buyer would need to command an annual income of $323,153.
\nThe persistent appreciation in home prices over recent years, even amidst elevated interest rates, presents a formidable challenge in many American housing markets. Specifically, in the most expensive metropolitan areas, median home values span a wide range, from around $605,000 to nearly $1.4 million. Consequently, for housing costs to remain at 30% of one's income, annual earnings ranging from $148,000 to $323,000 are essential.