Special Report

Most (and Least) Expensive Housing Markets

Bunker house
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For the first time, the median price of a home in a U.S. metro area passed the $1 million mark. A typical home in the San Jose, California area sold in the second quarter of 2016 for $1,085,000, more than four times the national median home price of $240,700.

Housing prices vary considerably between metro areas. To determine the most and least expensive housing markets, 24/7 Wall St. reviewed median single-family home prices from the National Association of Realtors. In contrast to San Jose-Sunnyvale-Santa Clara, California the least expensive U.S. housing market is Youngstown-Warren-Boardman, located on the border between Ohio and Pennsylvania, with a median home price of only $85,400.

Housing prices tend to correlate with an area’s median household income. Not only is San Jose the most expensive U.S. housing market, but it also has the highest median household income, at $96,481 a year. Incomes are almost always higher in areas with relatively expensive housing, while the opposite tends to be true in the least expensive markets.

Click here to see the most expensive housing markets.

Click here to see the most expensive housing markets.

Although incomes tend to be higher in expensive housing markets, homes are considerably less affordable in these markets. Nationwide, the median household income is more than enough to qualify for a mortgage to purchase a typical home. In the San Jose region, by contrast, a household would need to earn more than double the median income in the area to qualify for a loan on a typical home. With a 20% down payment, a minimum annual income of $198,355 is needed to qualify for a mortgage on a typical San Jose area home.

By contrast, while the median household income in Youngstown is only $42,228 annually, a typical home is considerably more affordable. With a 20% down payment, an area household earning just $15,612 a year could qualify for a loan. This means that a person earning minimum wage in the area could afford to purchase a home.

Because owning a home in the cheapest markets is much easier, homeownership rates tend to be higher in these areas. Homeownership rates are higher than the national rate in 24 of the 25 cheapest markets. The opposite is true in expensive markets, with the homeownership rates lower than the national rate in the majority of areas.

To identify the most and least expensive housing markets, 24/7 Wall St. reviewed median single-family home prices in the second quarter of 2016 as released by the National Association of Realtors. Qualifying incomes assuming a 20% down payment for metro areas are also from the NAR for the same time period. Median household incomes and homeownership rates are from the U.S. Census Bureau’s 2014 American Community Survey. We calculated monthly mortgage payments using a 3.9% interest rate and assuming a 20% down payment — the same measures used by the NAR to compare housing affordability at the metro area level.

These are the 25 most (and 25 least) expensive housing markets.

America’s Most Expensive Housing Markets

Austin Texas Neighborhood Suburbia Suburb Sunset
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25. Austin-Round Rock, TX
> 2016 Q2 median sale price: $289,100
> Qualifying income w. 20% down: $52,852
> Median household income: $63,603
> Monthly payment: $1,091

Reno Nevada Suburbs Aerial
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24. Reno, NV
> 2016 Q2 median sale price: $307,900
> Qualifying income w. 20% down: $56,289
> Median household income: $52,728
> Monthly payment: $1,162

Miami, Florida
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23. Miami-Fort Lauderdale-West Palm Beach, FL
> 2016 Q2 median sale price: $310,000
> Qualifying income w. 20% down: $56,673
> Median household income: $48,458
> Monthly payment: $1,170

Burlington (Chittenden County), Vermont
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22. Burlington-South Burlington, VT
> 2016 Q2 median sale price: $313,200
> Qualifying income w. 20% down: $57,258
> Median household income: $61,947
> Monthly payment: $1,182

Riverside, California
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21. Riverside-San Bernardino-Ontario, CA
> 2016 Q2 median sale price: $315,500
> Qualifying income w. 20% down: $57,678
> Median household income: $54,586
> Monthly payment: $1,190

Sacramento, California City Downtown
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20. Sacramento–Roseville–Arden-Arcade, CA
> 2016 Q2 median sale price: $323,700
> Qualifying income w. 20% down: $59,178
> Median household income: $60,015
> Monthly payment: $1,221

Portland, Oregon
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19. Portland-Vancouver-Hillsboro, OR-WA
> 2016 Q2 median sale price: $356,700
> Qualifying income w. 20% down: $65,210
> Median household income: $60,248
> Monthly payment: $1,346

Cityscape of White Plains, New York
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18. New York-Jersey City-White Plains, NY-NJ
> 2016 Q2 median sale price: $366,600
> Qualifying income w. 20% down: $67,020
> Median household income: N/A
> Monthly payment: $1,383

Barnstable_County_Courthouse,_Barnstable_MA
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17. Barnstable Town, MA
> 2016 Q2 median sale price: $367,400
> Qualifying income w. 20% down: $67,167
> Median household income: $65,384
> Monthly payment: $1,386

Bridgeport, Connecticut
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16. Bridgeport-Stamford-Norwalk, CT
> 2016 Q2 median sale price: $380,500
> Qualifying income w. 20% down: $69,561
> Median household income: $85,925
> Monthly payment: $1,436

Newark at night, New Jersey
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15. Newark, NJ-PA
> 2016 Q2 median sale price: $389,300
> Qualifying income w. 20% down: $71,170
> Median household income: N/A
> Monthly payment: $1,469

Denver-Aurora-Lakewood, Colorado
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14. Denver-Aurora-Lakewood, CO
> 2016 Q2 median sale price: $394,400
> Qualifying income w. 20% down: $72,103
> Median household income: $66,870
> Monthly payment: $1,488

The West Village, New York
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13. New York-Newark-Jersey City, NY-NJ-PA
> 2016 Q2 median sale price: $395,400
> Qualifying income w. 20% down: $72,285
> Median household income: $67,066
> Monthly payment: $1,492

Capitol Hill, Washington
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12. Washington-Arlington-Alexandria, DC-VA-MD-WV
> 2016 Q2 median sale price: $406,900
> Qualifying income w. 20% down: $74,388
> Median household income: $91,193
> Monthly payment: $1,535

View of Seattle from Space Needle
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11. Seattle-Tacoma-Bellevue, WA
> 2016 Q2 median sale price: $420,500
> Qualifying income w. 20% down: $76,874
> Median household income: $71,273
> Monthly payment: $1,587

Boston, Massachusetts
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10. Boston-Cambridge-Newton, MA-NH
> 2016 Q2 median sale price: $435,800
> Qualifying income w. 20% down: $79,671
> Median household income: $75,667
> Monthly payment: $1,644

Nassau County, New York
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9. Nassau County-Suffolk County, NY
> 2016 Q2 median sale price: $442,800
> Qualifying income w. 20% down: $80,951
> Median household income: N/A
> Monthly payment: $1,671

Naples, FL
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8. Naples-Immokalee-Marco Island, FL
> 2016 Q2 median sale price: $449,500
> Qualifying income w. 20% down: $82,176
> Median household income: $58,026
> Monthly payment: $1,696

Los Angeles Eclectic California Beach Homes
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7. Los Angeles-Long Beach-Glendale, CA
> 2016 Q2 median sale price: $480,000
> Qualifying income w. 20% down: $87,752
> Median household income: N/A
> Monthly payment: $1,811

CU Boulder Campus
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6. Boulder, CO
> 2016 Q2 median sale price: $549,600
> Qualifying income w. 20% down: $100,476
> Median household income: $71,540
> Monthly payment: $2,074

San Diego, California La Jolla Hillside Homes
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5. San Diego-Carlsbad, CA
> 2016 Q2 median sale price: $589,900
> Qualifying income w. 20% down: $107,843
> Median household income: $66,192
> Monthly payment: $2,226

Honolulu, Hawaii
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4. Urban Hololulu, HI
> 2016 Q2 median sale price: $725,200
> Qualifying income w. 20% down: $132,578
> Median household income: $74,634
> Monthly payment: $2,736

Aerial View of Santa Ana and Anaheim
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3. Anaheim-Santa Ana-Irvine, CA
> 2016 Q2 median sale price: $742,200
> Qualifying income w. 20% down: $135,686
> Median household income: N/A
> Monthly payment: $2,801

Painted Ladies, San Francisco, California
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2. San Francisco-Oakland-Hayward, CA
> 2016 Q2 median sale price: $885,600
> Qualifying income w. 20% down: $161,902
> Median household income: $83,222
> Monthly payment: $3,342

Hayes Mansion, 200 Edenvale Ave., San Jose, CA
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1. San Jose-Sunnyvale-Santa Clara, CA
> 2016 Q2 median sale price: $1,085,000
> Qualifying income w. 20% down: $198,355
> Median household income: $96,481
> Monthly payment: $4,094

America’s Least Expensive Housing Markets

Mobile, Alabama
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25. Mobile, AL
> 2016 Q2 median sale price: $133,900
> Qualifying income w. 20% down: $24,479
> Median household income: $43,642
> Monthly payment: $505

Springfield, Missouri
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24. Springfield, MO
> 2016 Q2 median sale price: $133,200
> Qualifying income w. 20% down: $24,351
> Median household income: $41,248
> Monthly payment: $503

Akron, Ohio
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23. Akron, OH
> 2016 Q2 median sale price: $131,100
> Qualifying income w. 20% down: $23,967
> Median household income: $50,538
> Monthly payment: $495

Oshkosh, Wisconsin
Wikimedia Commons

22. Oshkosh-Neenah, WI
> 2016 Q2 median sale price: $130,300
> Qualifying income w. 20% down: $23,821
> Median household income: $52,387
> Monthly payment: $492

Topeka, Kansas
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21. Topeka, KS
> 2016 Q2 median sale price: $129,800
> Qualifying income w. 20% down: $23,730
> Median household income: $54,388
> Monthly payment: $490

Decatur, Alabama
Wikimedia Commons

20. Decatur, AL
> 2016 Q2 median sale price: $129,600
> Qualifying income w. 20% down: $23,693
> Median household income: $44,600
> Monthly payment: $489

Buffalo Skyline
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19. Buffalo-Cheektowaga-Niagara Falls, NY
> 2016 Q2 median sale price: $129,600
> Qualifying income w. 20% down: $23,693
> Median household income: $50,074
> Monthly payment: $489

Fort Wayne, Indiana
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18. Fort Wayne, IN
> 2016 Q2 median sale price: $128,400
> Qualifying income w. 20% down: $23,474
> Median household income: $49,405
> Monthly payment: $484

Syracuse, New York
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17. Syracuse, NY
> 2016 Q2 median sale price: $128,400
> Qualifying income w. 20% down: $23,474
> Median household income: $51,915
> Monthly payment: $484

Canton, Ohio
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16. Canton-Massillon, OH
> 2016 Q2 median sale price: $128,200
> Qualifying income w. 20% down: $23,437
> Median household income: $47,729
> Monthly payment: $484

Ocala, Florida
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15. Ocala, FL
> 2016 Q2 median sale price: $128,000
> Qualifying income w. 20% down: $23,400
> Median household income: $39,958
> Monthly payment: $483

Fond du Lac, Wisconsin
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14. Fond du Lac, WI
> 2016 Q2 median sale price: $126,200
> Qualifying income w. 20% down: $23,071
> Median household income: $51,717
> Monthly payment: $476

Davenport, IA
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13. Davenport-Moline-Rock Island, IA-IL
> 2016 Q2 median sale price: $125,500
> Qualifying income w. 20% down: $22,943
> Median household income: $51,410
> Monthly payment: $474

Toledo, Ohio
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12. Toledo, OH
> 2016 Q2 median sale price: $125,100
> Qualifying income w. 20% down: $22,870
> Median household income: $45,603
> Monthly payment: $472

Cedar Falls, Iowa
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11. Waterloo-Cedar Falls, IA
> 2016 Q2 median sale price: $124,700
> Qualifying income w. 20% down: $22,797
> Median household income: $52,991
> Monthly payment: $471

south bend bad
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10. South Bend-Mishawaka, IN-MI
> 2016 Q2 median sale price: $121,800
> Qualifying income w. 20% down: $22,267
> Median household income: $46,610
> Monthly payment: $460

Peoria, Illinois
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9. Peoria, IL
> 2016 Q2 median sale price: $120,500
> Qualifying income w. 20% down: $22,029
> Median household income: $56,186
> Monthly payment: $455

Elmira, New York
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8. Elmira, NY
> 2016 Q2 median sale price: $115,600
> Qualifying income w. 20% down: $21,134
> Median household income: $50,232
> Monthly payment: $436

Erie, Pennsylvania

7. Erie, PA
> 2016 Q2 median sale price: $115,100
> Qualifying income w. 20% down: $21,042
> Median household income: $45,560
> Monthly payment: $434

Wichita Falls, Texas
Wikimedia Commons

6. Wichita Falls, TX
> 2016 Q2 median sale price: $109,800
> Qualifying income w. 20% down: $20,073
> Median household income: $43,804
> Monthly payment: $414

Rockford, Illinois
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5. Rockford, IL
> 2016 Q2 median sale price: $109,000
> Qualifying income w. 20% down: $19,927
> Median household income: $48,385
> Monthly payment: $411

Binghamton, New York
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4. Binghamton, NY
> 2016 Q2 median sale price: $105,500
> Qualifying income w. 20% down: $19,287
> Median household income: $48,188
> Monthly payment: $398

Decatur, Illinois
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3. Decatur, IL
> 2016 Q2 median sale price: $95,600
> Qualifying income w. 20% down: $17,477
> Median household income: $47,574
> Monthly payment: $361

Cumberland, Maryland
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2. Cumberland, MD-WV
> 2016 Q2 median sale price: $94,900
> Qualifying income w. 20% down: $17,349
> Median household income: $38,580
> Monthly payment: $358

Youngstown Ohio
Wikimedia Commons

1. Youngstown-Warren-Boardman, OH-PA
> 2016 Q2 median sale price: $85,400
> Qualifying income w. 20% down: $15,612
> Median household income: $42,228
> Monthly payment: $322

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