The American dream of owning a home is becoming increasingly difficult for many, especially in states where housing prices are skyrocketing. While affordability varies widely across the country, some states consistently rank as the most expensive places to buy a house.
Why Are Home Prices Rising?
Several factors contribute to high housing costs:
- Limited inventory: A persistent shortage of homes on the market keeps prices elevated.
- Strong demand: Certain states have attractive job markets, great weather, or desirable amenities, increasing competition.
- Inflation & interest rates: Higher borrowing costs due to increased interest rates make monthly mortgage payments more expensive.
- Remote work relocation: Many people moved to more scenic or less urban areas during the pandemic, further driving up home prices.
If you’re looking to buy a home, here are the 10 most expensive states to purchase a house in 2024, based on median sale prices and other housing cost factors.
1. California
- Median Sale Price: $785,000
- Median Household Income: $96,334
- Median Monthly Mortgage Payment: $2,865
California consistently tops the list of expensive states for homeownership. With high demand, limited housing supply, and strict zoning regulations, home prices remain sky-high.
Most Expensive Areas:
- San Francisco Bay Area: Tech hubs like San Jose and Silicon Valley drive home prices well above $1 million.
- Los Angeles & Orange County: Prime coastal real estate and celebrity culture keep prices high.
- San Diego: A desirable climate and oceanfront properties make it one of the most expensive places in the U.S.
Despite high wages, many Californians struggle with affordability due to high living costs, property taxes, and mortgage rates.
2. Hawaii
- Median Sale Price: $779,000
- Median Household Income: $98,317
- Median Monthly Mortgage Payment: $2,863
Living in paradise comes at a price. Hawaii’s real estate market remains one of the most expensive due to its unique geographical constraints—limited land and strong demand from wealthy buyers and investors.
Why So Expensive?
- Limited housing development (only so much land available)
- High cost of imported materials
- Luxury vacation home market driving up prices
Honolulu, Maui, and Kauai are among the most expensive places, with median home prices often exceeding $1 million.
3. Massachusetts
- Median Sale Price: $622,000
- Median Household Income: $101,341
- Median Monthly Mortgage Payment: $2,659
Massachusetts has one of the strongest economies in the U.S., with Boston serving as a hub for tech, healthcare, and education. This economic strength contributes to high home prices, especially in Greater Boston and Cambridge.
What’s Driving Up Prices?
- Boston’s job market attracts high-income earners
- Limited land for new construction
- Elite universities and research institutions create housing demand
Despite relatively high household incomes, many first-time buyers struggle to afford homes near major employment centers.
4. Colorado
- Median Sale Price: $607,000
- Median Household Income: $92,470
- Median Monthly Mortgage Payment: $2,231
Once an affordable state, Colorado’s home prices have surged in recent years, especially in Denver, Boulder, and Aspen. The state’s natural beauty and booming tech industry have attracted new residents, increasing demand.
Key Reasons for High Prices:
- A wave of pandemic-driven relocations
- Low housing supply and high demand
- High desirability for outdoor enthusiasts
While salaries in Colorado are competitive, many homebuyers are being priced out of major metro areas.
5. Washington
- Median Sale Price: $606,000
- Median Household Income: $94,952
- Median Monthly Mortgage Payment: $2,358
Washington’s housing costs are largely driven by the Seattle metro area, where the presence of tech giants like Amazon, Microsoft, and Google has led to rapid home price increases.
Why Home Prices Are High:
- Limited space for new development in Seattle
- High salaries in the tech industry drive demand
- Large influx of workers and new residents
Housing affordability remains a concern, pushing many buyers to suburban areas outside of Seattle.
6. New York
- Median Sale Price: $571,000
- Median Household Income: $84,579
- Median Monthly Mortgage Payment: $2,501
New York State’s housing market is heavily influenced by New York City, where prices are among the highest in the country.
Most Expensive Areas:
- Manhattan, Brooklyn, and Queens
- Westchester and Long Island suburbs
- Hudson Valley (rising demand from NYC residents)
Even outside NYC, home prices in desirable areas like the Hamptons and upstate New York have increased due to demand from remote workers.
7. Utah
- Median Sale Price: $567,000
- Median Household Income: $91,750
- Median Monthly Mortgage Payment: $1,927
Utah has seen a real estate boom, with Salt Lake City and surrounding areas experiencing significant price increases.
What’s Driving the Market?
- A strong job market and growing tech industry
- A surge of out-of-state buyers looking for a better quality of life
- A shortage of affordable homes
The state’s stunning landscapes and family-friendly cities have made it a top relocation destination, but affordability is becoming an issue.
8. Montana
- Median Sale Price: $540,700
- Median Household Income: $68,700
- Median Monthly Mortgage Payment: $1,800
Montana has experienced a population boom, especially from remote workers moving to cities like Bozeman and Missoula. The demand for homes has pushed prices up significantly.
Key Factors for Price Growth:
- Limited new construction
- High demand from out-of-state buyers
- A shift toward rural living post-pandemic
Home prices have increased 85% in the last five years, making affordability a growing concern for long-time residents.
9. New Jersey
- Median Sale Price: $538,000
- Median Household Income: $85,245
- Median Monthly Mortgage Payment: $2,400
New Jersey remains one of the most expensive states due to its proximity to New York City and Philadelphia. The northern part of the state, including Hoboken and Jersey City, is especially costly due to easy access to Manhattan.
Affordability Challenges:
- High property taxes (among the highest in the U.S.)
- Strong demand for suburban housing post-pandemic
- Limited new development near urban centers
Despite high home prices, many buyers still choose New Jersey for its convenient location and good schools.
10. Oregon
- Median Sale Price: $527,000
- Median Household Income: $84,267
- Median Monthly Mortgage Payment: $2,300
Oregon’s scenic beauty and thriving job market in Portland make it an attractive place to live. However, affordability remains a challenge due to:
- High cost of land and building regulations
- Strong demand in cities like Portland, Eugene, and Bend
- Limited housing supply
Portland’s home prices have surged, leading many to relocate to more affordable areas within the state.
Final Thoughts
These states offer great job opportunities, beautiful landscapes, and high quality of life, but housing affordability remains a major challenge. If you’re considering buying a home in any of these locations, careful financial planning and market research will be crucial in securing a property within your budget.