A family buying a home in San Jose, California, faces a price that would be unimaginable in much of the country. The median single-family home sold for $2.05 million in the second quarter of 2026. Even with a 20% down payment, the buyer would need $410,000 upfront before paying closing costs.
San Jose is America’s most expensive housing market, according to the National Association of Realtor. Eight of the ten most expensive metropolitan markets are in California. Honolulu and a Connecticut market near New York City complete the list.
The national median price for an existing single-family home was $434,900 during the same period. San Jose’s median was more than four times that amount.
For buyers thinking about leaving an expensive area, the sale price is only part of the decision.
A Long Island household comparing homes in another state, for example, must also consider relocation expenses, which can include arranging transportation through a company such as Liberty Moving and Storage. Moving to a less expensive market may reduce the mortgage, but the actual savings depend on the new home’s taxes, insurance, commuting costs, and other expenses.
The 10 Most Expensive Housing Markets in America in 2026
The National Association of Realtors ranked metropolitan areas by the median price of existing single-family homes sold during the second quarter of 2026. The list measures completed sales, not asking prices or the cost of luxury properties.
| Rank | Housing Market | Median Home Price | Annual Change |
| 1 | San Jose, California | $2,050,000 | -4.2% |
| 2 | San Francisco, California | $1,500,000 | +5.2% |
| 3 | Anaheim, California | $1,485,000 | +3.7% |
| 4 | Urban Honolulu, Hawaii | $1,183,000 | +3.0% |
| 5 | San Diego, California | $1,075,000 | +4.9% |
| 6 | Salinas, California | $982,600 | +0.4% |
| 7 | Oxnard, California | $961,800 | +0.4% |
| 8 | San Luis Obispo, California | $954,400 | +2.8% |
| 9 | Bridgeport, Connecticut | $885,100 | +4.7% |
| 10 | Los Angeles, California | $879,900 | 0.0% |
Source: National Association of Realtors, second quarter of 2026. Shortened city names represent their wider metropolitan markets. Annual changes compare the second quarter of 2026 with the second quarter of 2025.
The California markets occupy eight positions, including the entire top three. However, their price movements have not followed the same direction. San Jose’s median fell, while San Francisco, Anaheim, and San Diego recorded increases.
1. San Jose, California – $2,050,000
San Jose remains the most expensive metropolitan housing market in the United States, even after its median single-family home price declined 4.2% over the previous year.
The wider San Jose-Sunnyvale-Santa Clara region includes much of Silicon Valley, where employment in technology and other high-paying industries supports demand for homes. Residential construction also faces the challenge of finding suitable land within an established metropolitan area.
A 20% down payment on the median home would amount to $410,000. That is only the initial contribution toward the purchase, not the full amount needed to complete it.
The annual price decline offers some relief compared with the previous year, but the region remains far more expensive than the national market. Buyers who earn salaries that would support homeownership in many other cities may still face severe affordability constraints in San Jose.
2. San Francisco, California – $1,500,000
San Francisco’s metropolitan median reached $1.5 million, increasing 5.2% from a year earlier.
The ranking covers San Francisco, Oakland, Hayward, and surrounding communities within the metropolitan area. It should not be interpreted as the median price for San Francisco city limits alone.
Buyers face substantial competition for homes in established neighborhoods, particularly where access to employment centers, public transportation, and schools influences demand.
A 20% down payment on a $1.5 million property comes to $300,000. Even households with substantial savings must consider how much of their monthly income would remain after mortgage payments, taxes, and insurance.
3. Anaheim, California – $1,485,000
The Anaheim-Santa Ana-Irvine housing market follows San Francisco closely, with a median price of $1.485 million.
Home prices increased 3.7% over the previous year. Orange County remains one of the country’s most expensive areas for homeownership, with coastal communities, established suburban neighborhoods, and major employment centers contributing to demand.
For a buyer comparing Southern California locations, the Anaheim metropolitan figure is higher than the Los Angeles figure in the same report.
That does not mean every neighborhood in Orange County costs more than every neighborhood in Los Angeles. The numbers describe the midpoint of homes sold across two large markets, each containing a wide range of properties.
4. Urban Honolulu, Hawaii – $1,183,000
Urban Honolulu is the only market outside the continental United States in the top ten.
Its median single-family home price reached $1.183 million, up 3% from the second quarter of 2025.
Land availability is a major issue on Oahu, where mountains, the ocean, and existing development restrict opportunities for additional housing.
Island construction also involves transportation and supply considerations that are less common in many mainland markets. Building materials and equipment may need to travel long distances, adding complexity to residential development.
Buyers considering Honolulu should compare maintenance and insurance expenses alongside the purchase price, particularly when examining properties near the coast.
5. San Diego, California – $1,075,000
San Diego’s median single-family home price rose 4.9% to $1.075 million.
The metropolitan area has a substantial military presence, research institutions, technology employers, and established coastal communities. Those employment centers help sustain demand, even as high prices limit the number of households able to purchase a home.
San Diego is less expensive than San Jose and San Francisco based on the median sales figures, but it remains a million-dollar housing market.
For first-time buyers, a smaller condominium may be more accessible than a detached home. However, condominium prices and monthly association fees need separate consideration because this ranking covers existing single-family houses.
6. Salinas, California – $982,600
Salinas, in Monterey County, recorded a median price of $982,600, an increase of just 0.4% over the previous year.
The region includes agricultural communities as well as communities influenced by the expensive Monterey Bay coastal market.
Its presence in the top ten illustrates how high housing prices extend into areas that are not major technology or financial centers.
For households earning wages in agriculture, retail, hospitality, or other local industries, buying a home near the regional median can be especially challenging.
7. Oxnard, California – $961,800
The Oxnard-Thousand Oaks-Ventura metropolitan area had a median price of $961,800, up 0.4% from a year earlier.
Ventura County combines coastal neighborhoods, suburban communities, and employment connections to the wider Southern California economy.
Housing demand is influenced by proximity to the ocean and access to communities along the Los Angeles metropolitan region.
The small annual increase suggests that the median price changed little over the year, although individual neighborhoods and property types may have experienced larger movements.
8. San Luis Obispo, California – $954,400
San Luis Obispo-Paso Robles recorded a median single-family home price of $954,400, increasing 2.8% over the previous year.
The region is smaller than the major metropolitan markets elsewhere on the list, but its coastal location, university community, and surrounding towns have contributed to housing demand.
Buyers attracted by the Central Coast may find that leaving Los Angeles or the Bay Area does not necessarily mean finding inexpensive housing.
At the regional median, purchasing a home still involves a price approaching $1 million.
9. Bridgeport, Connecticut – $885,100
Bridgeport-Stamford-Norwalk is the only Northeastern market among the ten most expensive.
Its median home price reached $885,100, an annual increase of 4.7%.
Fairfield County includes communities with access to employment opportunities in New York City. Rail connections and proximity to Manhattan make parts of the region attractive to households whose jobs remain tied to the city.
The metropolitan median also includes communities with substantially lower prices than the most expensive parts of Greenwich and surrounding towns.
Buyers moving from New York City to Connecticut should examine property taxes and commuting expenses carefully. A lower home purchase price does not guarantee lower monthly spending.
10. Los Angeles, California – $879,900
Los Angeles-Long Beach-Glendale completes the top ten with a median price of $879,900.
The figure was unchanged from the second quarter of 2025.
Los Angeles contains an unusually wide range of housing options, from high-priced coastal properties to older homes farther from the coast. The regional median combines sales across a large and varied market.
At the luxury end of the market, some of the city’s celebrity mansions with stunning architecture illustrate just how far property prices can extend beyond the regional median.
Although the median is lower than those of several smaller California markets, an $879,900 home still requires a substantial income and down payment.
Buyers considering locations farther from major employment centers should calculate commuting time and transportation expenses before treating a less expensive property as an automatic saving.
Why Are So Many of the Most Expensive Markets in California?
California has eight of the ten most expensive metropolitan housing markets in the country, but there is no single explanation for the prices across all eight.
San Jose and San Francisco benefit from proximity to major technology employers. Orange County and San Diego combine high-income neighborhoods with extensive coastal development. Salinas and San Luis Obispo face their own land constraints and local housing pressures.
- Limited land for new homes: Mountains, coastlines, protected areas, and existing development restrict where additional housing can be built.
- Concentrations of higher-paying jobs:Â Households with substantial incomes can compete for a limited number of available properties.
- Demand for established neighborhoods:Â Access to employment, schools, transportation, and local services influences where buyers want to live.
- Construction and development expenses:Â Land acquisition, building materials, labor, permits, and financing affect the financial viability of new housing.
- Homeowners remaining in their properties:Â Limited turnover can keep the selection of available homes small, especially when existing owners have mortgage rates lower than those available to new buyers.
The combination of these conditions varies by location. A million-dollar home in Silicon Valley and one on California’s Central Coast may reach similar prices for very different local reasons.
What Does a Million-Dollar Home Cost Each Month in 2026?
Purchase prices become more challenging when buyers calculate the mortgage payment.
On October 15, 2026, the average 30-year fixed mortgage rate was 7.40%, according to Freddie Mac’s mortgage rate survey.
Consider a home costing $1 million with a 20% down payment.
- Purchase price: $1,000,000
- Down payment: $200,000
- Mortgage principal: $800,000
- Mortgage term: 30 years
- Interest rate used for this example: 7.40%
With those assumptions, the monthly principal and interest payment is around $5,540.
Property taxes, homeowners insurance, maintenance, and any homeowners association fees come on top of that amount. The borrower would also need enough cash for closing expenses and other immediate costs.
For a home priced at $2 million, the mortgage expense becomes substantially larger even when the buyer contributes the same percentage upfront.
The example uses an average mortgage rate rather than a personalized offer. Actual rates depend on the borrower’s credit, loan terms, down payment, and lender.
Are Home Prices Falling in the Most Expensive Markets?
Not across the board.
San Jose’s median fell 4.2% in the second quarter, while San Francisco increased 5.2%. San Diego gained 4.9%, and the Los Angeles metropolitan median was unchanged.
The country as a whole also continued to record price increases in many places. The National Association of Realtors found that home prices rose in 80% of metropolitan markets during the second quarter of 2026.
More recent listing data offer another view of the market. In September, the national median asking price was $419,250, down 1.4% from a year earlier, and 20.8% of listings had experienced price reductions, according to Realtor.com’s September housing report.
Asking prices and completed sale prices are not interchangeable. A seller may list a home for one amount, reduce that figure, and eventually accept another price.
The September data suggest buyers have gained some negotiating opportunities, but they do not establish that every expensive market has become affordable.
Buyers looking for additional opportunities can also explore properties below market price, including distressed homes, auctions, and off-market listings.
Which Parts of America Are More Affordable for Homebuyers?
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The Midwest remains considerably less expensive than the West when comparing median existing single-family home prices.
In the second quarter of 2026, the National Association of Realtors reported the following regional figures.
| Region | Median Home Price | Annual Change |
| West | $637,900 | -0.8% |
| Northeast | $547,200 | +3.8% |
| South | $380,000 | +1.0% |
| Midwest | $340,800 | +3.6% |
The gap between the Midwest and West was $297,100 at the regional median.
For someone moving from an expensive coastal city, that price gap can mean a smaller mortgage or the ability to purchase a larger home. However, regional figures conceal substantial local variation.
A home in a desirable neighborhood near Chicago, for example, may cost much more than the Midwestern median. Similarly, parts of California remain less expensive than the state’s major coastal employment centers.
Buyers should compare specific cities and neighborhoods rather than using statewide or regional prices as an estimate for every property.
What Buyers Should Consider Before Moving to a Less Expensive Housing Market
Someone selling a $1.5 million home in San Francisco might find a house for $500,000 in another part of the country. The price gap is substantial, but the transaction involves more than exchanging one property for another.
The comparison should include several expenses.
Property Taxes and Home Insurance
Property taxes depend on local rules and assessed values. Insurance costs also vary with the property, its location, coverage choices, and exposure to hazards.
A less expensive house may still carry significant annual expenses, particularly in areas with elevated insurance costs.
Employment and Household Income
Moving to a cheaper city can reduce housing expenses, but a household may also lose access to its previous salary.
Workers who can retain a remote position have more flexibility. People who need to change employers should compare expected income with the potential housing savings.
Transportation and Commuting
A larger home farther from an employment center may require additional driving, another vehicle, or higher fuel expenses.
Someone who previously used public transportation could end up spending substantially more on transportation after moving.
The Cost of Selling and Moving
Homeowners should calculate selling expenses, moving services, temporary accommodation if needed, and any repairs or purchases required for the new property.
The full relocation budget is particularly important for households purchasing another home immediately after selling their current one.
Frequently Asked Questions
The Bottom Line
San Jose remains the most expensive housing market in America, with a median single-family home price of $2.05 million. San Francisco and Anaheim follow at $1.5 million and $1.485 million.
The ranking also reveals that high home prices do not necessarily mean prices are still rising. San Jose recorded a decline, while several other expensive California markets continued to gain value.
For buyers, the most useful comparison is not simply which city has the lowest listing price. It is how much the purchase will cost each month, how much income the household can expect to earn, and what expenses will remain after the mortgage is paid.
In 2026, that calculation is especially important. A lower purchase price can help, but high borrowing costs still make homeownership expensive in markets far below the million-dollar level.
