The Most Expensive States to Buy a House in the U.S.
As housing prices continue to rise, many Americans are finding it increasingly difficult to afford a home. With mortgage rates remaining high and wages failing to keep pace, the affordability gap is widening, pushing more people into the costly rental market. The supply shortage is a major contributor to the housing crisis.
During the pandemic, a trend emerged where people sought more affordable living options, leading to growth in areas like Florida, Arizona, Texas, and the Rust Belt, while coastal cities experienced population declines.
Despite this normalization, the question remains: in a market where affordability is key, which states have the highest housing prices? This Redfin article explores the top ten most expensive states to buy a house, providing valuable insights for those looking to navigate the housing market.
U.S. Housing Market Overview
| Median Sale Price: $428,000 |
Median Household Income: $78,538 |
Median Monthly Housing Payment: $1,902 |
The 10 Most Expensive States to Buy a House
1. California
- Median Sale Price: $785,000
- Median Household Income: $96,334
- Median Monthly Housing Payment: $2,865
California tops the list as the most expensive state to buy a house in the U.S. High housing prices, driven by a significant supply shortage, along with high living costs, make it a costly place to live. Despite a relatively high median household income, many residents still struggle to afford housing, leading to a large population of cost-burdened individuals.
The state is home to seven of the ten most expensive cities in the country, with Los Angeles, San Jose, and San Francisco among the priciest. Climate risks and insurance challenges also contribute to the overall cost of living in California.
While housing in California may be expensive, the state offers a unique blend of outdoor adventures, economic opportunities, and diverse communities, making it an attractive place to call home.
California homes for sale | California houses for rent | California apartments for rent
2. Hawaii
- Median Sale Price: $779,000
- Median Household Income: $98,317
- Median Monthly Housing Payment: $2,863
Known for its scenic beauty and vibrant culture, Hawaii is often seen as a paradise on earth. However, the state’s high cost of living, especially in cities like Honolulu, makes it the second most expensive state to buy a house in the U.S. Utility costs, everyday expenses, and low wages contribute to the overall affordability challenges in Hawaii.
Despite the high housing prices, Hawaii offers a unique lifestyle filled with natural wonders, friendly communities, and a diverse way of life across its islands.
Hawaii homes for sale | Hawaii houses for rent | Hawaii apartments for rent
3. Massachusetts
- Median Sale Price: $622,000
- Median Household Income: $101,341
- Median Monthly Housing Payment: $2,659
Massachusetts, known for its rich history and bustling cities, is the third most expensive state to buy a house in the U.S. With high-paying jobs and walkable cities, the state offers a range of opportunities, but at a price. House prices in Massachusetts are among the highest in the country, with many cities surpassing the million-dollar mark.
Boston’s surrounding suburbs and coastal towns like Edgartown, West Tisbury, and Duxbury are among the most expensive places in Massachusetts. Efforts are being made to improve access to affordable housing statewide, addressing the challenges faced by those trying to enter the housing market.
Massachusetts homes for sale | Massachusetts houses for rent | Massachusetts apartments for rent
4. Colorado
- Median Sale Price: $607,000
- Median Household Income: $92,470
- Median Monthly Housing Payment: $2,231
Colorado, known for its diverse landscapes and vibrant cities, is the fourth most expensive state to buy a house in the U.S. Despite a relatively stable population growth, demand continues to outpace supply, driving housing prices higher. Cities like Denver and luxury mountain towns like Aspen regularly see some of the most expensive home sales in the nation.
The state’s craft beer scene, tech industry in Boulder, and affordable cities like Pueblo and Greeley offer a mix of opportunities for residents. Despite the high cost of housing in Colorado, the state’s outdoor adventures and community spirit make it a desirable place to live.
Colorado homes for sale | Colorado houses for rent | Colorado apartments for rent
5. Washington
- Median Sale Price: $606,000
- Median Household Income: $94,952
- Median Monthly Housing Payment: $2,358
Washington ranks as the fifth most expensive state in the U.S. to buy a house, with housing costs well above the national average. While Seattle’s suburbs are among the most expensive, towns in Eastern Washington offer more affordable options. The state’s iconic mountain ranges, tech scene, and coffee culture make it a unique place to live.
Washington homes for sale | Washington houses for rent | Washington apartments for rent
6. New York
- Median Sale Price: $571,000
- Median Household Income: $84,579
- Median Monthly Housing Payment: $2,501
New York, a state known for its vibrant cities and diverse landscapes, is the sixth most expensive state to buy a house. Manhattan leads the pack as the most expensive place to live, with neighborhoods like TriBeCa and SoHo commanding high prices. Despite the high cost of living, New York offers a mix of urban and rural environments, providing a range of living options.
New York homes for sale | New York houses for rent | New York apartments for rent
7. Utah
- Median Sale Price: $567,000
- Median Household Income: $91,750
- Median Monthly Housing Payment: $1,927
Utah may come as a surprise with its rising housing costs, driven by a strong job market and an influx of new residents. The state’s scenic beauty and housing shortage have contributed to a steady increase in median sale prices. Cities like Salt Lake City and towns near ski resorts demand some of the highest prices in the state.
Despite the affordability challenges, Utah offers a range of outdoor activities, arts scenes, and educational opportunities, making it an attractive place to live for those who can afford it.
Utah homes for sale | Utah houses for rent | Utah apartments for rent
8. Montana
- Median Sale Price: $541,000
- Median Household Income: $69,922
- Median Monthly Housing Payment: $1,736
Montana, once a refuge for coastal homebuyers seeking affordable living, has seen a rapid increase in housing costs, especially in trendy cities like Bozeman and Whitefish. Despite a slowdown in growth, the state’s housing prices have surged, making it one of the least affordable states in terms of housing and local wages.
While housing in Montana may be expensive