10 Most-Expensive Metros That Could Tank Your Homebuying Dreams in 2025

House hunting? Your wallet just flinched.

These metro areas aren’t just pricey—they’re financial black holes for aspiring homeowners. From Silicon Valley’s absurd premiums to Miami’s crypto-bro inflation, the math keeps getting uglier.

Here’s the brutal truth: traditional mortgages can’t keep up with these markets. Even a 20% down payment feels like bringing a water pistol to a wildfire.

And let’s be real—if you’re still waiting for a ‘correction,’ you’re basically timing the market. Good luck with that.

Bottom line? Either bring private equity money or reconsider your zip code. Because in these 10 metros, ‘affordable housing’ is an oxymoron—right up there with ‘ethical banking.’

Key Takeaways

• Home prices have continued to climb in 2025, with the highest costs concentrated in two U.S. regions.
• All 10 of the most expensive metro areas, ranked by median listing price in July, are located in the West or Northeast, according to Realtor.com data.
• Half of the top 10 metros are in California, while others are clustered around major cities and a few state capitals.

Largest US Cities, State Capitals Dominate Most Expensive List

Based on July 2025 data from Realtor.com, Investopedia identified the 10 most expensive metro areas by median listing price and the income someone WOULD need to afford it while keeping housing costs at 30% of their income.

The list is largely concentrated around the largest U.S. cities, with six metro areas in the West, four from the Northeast, and none from the South or Midwest.

Here are the 10 most expensive metros for July 2025:

10: Washington, D.C., Arlington, Alexandria (DC, VA, MD, WV)

Living in or around the nation's capital will cost you, with a median listing price of $612,500 for homes listed for sale in Washington, D.C. After accounting for any loans to go along with a typical 20% down payment, as well as mortgage rates, property tax levels, and the cost of home insurance, monthly housing costs are projected to be around $3,700, putting the annual income you would need to keep your housing costs under 30% of your income at $148,570.

9: Sacramento, Roseville, Folsom (CA)

Proximity to the state capital is reason enough for a bump in this metro area's housing prices, but California housing prices are steep almost everywhere, with five of its metro areas in the top 10.

Homes had a median listing price of $625,000. After accounting for the home loan amount, taxes, and mortgage rates, the amount of income needed for the Sacramento metro area to be under 30% of income is $151,709.

8: Providence, Warwick (RI, MA)

The capital of Rhode Island also makes the list, with a median listing price of $604,950, the lowest listing price of the 10 on the list.

The area has higher average mortgage rates and property taxes. This means your monthly costs and annual income needs will be higher than those in the metro areas above, at almost $3,900 and $155,460, respectively.

7: Seattle, Tacoma, Bellevue (WA)

The median list price for the Seattle area is significantly higher than in Providence, Rhode Island, at $785,463.

The annual income needed to afford that listing price is $191,093, about $40,000 higher than the first three metros on the list.

6: New York, Newark, Jersey City (NY, NJ)

The median list price in and around New York City in July was $775,000. Higher property taxes increase the monthly costs, and the income needed to afford the median home is $195,591.

5: Boston, Cambridge, Newton (MA, NH)

This is the most expensive Northeastern metro on the list, with the median home price at $841,950. The annual income required to afford that price is $211,288.

4: San Diego, Chula Vista, Carlsbad (CA)

The rest of the metros in this list are all in the California. The San Diego metro area had a median listing of $987,500, with a required income of $234,712.

3: San Francisco, Oakland, Fremont (CA)

The Bay Area had a slightly higher median price of $990,000, and identical mortgage and tax rates in the same state put the metro's needed income at $235,284, just $572 above the San Diego metro area.

2: Los Angeles, Long Beach, Anaheim (CA)

One of two metro areas with a median listing over $1 million, the cost of living in SoCal is steep. Homes were listed for a median price of $1,148,483 in July, putting the income needed to make that price affordable at about $271,573.

1: San Jose, Sunnyvale, Santa Clara (CA)

The San Jose metro area was the most expensive in the country last month, with an average listing price of $1,373,750. That's more than double the median price of the least costly metros on this list and more than triple the national median of $440,950. A homebuyer would need to make $323,153 annually to afford a home here.

The Bottom Line

Home prices have kept rising in recent years, even with higher interest rates. And some areas are especially costly. In the metros listed above, median home prices range from $605,000 to almost $1.4 million. To keep housing costs at 30% of income, you would need an annual income between $148,000 and $323,000.