Discover the 9 Most Expensive Cities in America and Why They Cost So Much

A new survey by Remitly has revealed the least-affordable cities in America, with some surprising results.

California Dominates List of Most-Expensive Cities

The survey found that California dominated the ranking of most-expensive cities, taking six of the nine top spots. These are the nine least-affordable cities in America, according to Remitly: 

• San Jose, CA

• Los Angeles, CA

• Long Beach, CA

• San Diego

• New York City, NY

• Miami, FL

• San Francisco, CA

• Boston, MA

• Oakland, CA

Higher Demand Has Led to Higher Costs

“Home prices are high in many of these cities, especially the California markets. On the one hand, this reflects the desirability of these areas that offer high-paying jobs, a favorable climate, and access to natural and cultural amenities,” Danielle Hale, chief economist at Realtor.com®, toldThe New York Post. “On the other hand, this shows the inability of supply to keep pace with this demand, which means the market clears by pushing prices higher, though prices can also remain high if the cost of bringing a home to the market is elevated by the cost of regulatory compliance.”

Hale went on to explain that the reason California is experiencing such an inflated cost of living is that it’s become exceedingly hard (not to mention expensive) to build on the state’s land. “A recent Realtor.com report showed that homeownership in California has not always been so unaffordable to the typical earner, but in order to move back in that direction, the state needs to take steps to make it easier to build,” she said.

In San Jose, the average home lists for around $1.95 million, while the average annual income tops out around $140,000. Both Los Angeles and Long Beach see average home listings of $1.025 million against citizens’ average annual salaries of around $80,000.

Miami and New York Remain Popular Destinations

As for New York and Miami, “strong demand has outmatched supply, pushing prices higher in a market where proximity is a key marker of value,” Hale explained. “One bright spot for this market is that typical asking prices have been relatively flat in recent months” in the New York market. As for Miami, its popularity endures thanks to “its climate, opportunities, and favorable tax situation.”

“Recent data show that more than a third (33.6 percent) of home shoppers in Miami came from another country or state. In fact, one in five Miami home shoppers was coming from the New York City area. While Miami’s prices have grown, the median remains about a third below the median priced listing in New York City.”

Boston has also risen to become one of the nation’s most expensive cities despite once being on the other side of the equation. “Boston is a major city with above-average wages due in part to a high-skilled workforce and a higher-than-usual share of industries that employ high-wage workers,” Hale said. However, as the city has consistently attracted “these workers and home shoppers from all over, its home prices have risen. Construction in Boston and Massachusetts lags behind its population relative to other states. In fact, Massachusetts earned the lowest rating in our recent state report cards ranking on home affordability and new construction in large part due to its lengthy zoning codes and highly fragmented districts.”