According to the latest research from the internet digital financial advisor platform SmartAsset, half of the top ten most expensive real estate markets in the United States in 2025 are located in California, with San Jose in Silicon Valley retaining the top spot for two consecutive years, with a median home price reaching as high as $1.626 million.
SmartAsset ranked the 100 largest metropolitan areas in the United States based on the median home prices in 2025 and calculated price changes over one and five years to observe market trends.
As of May 2025, the median home price nationwide reached $368,751. However, in some metropolitan areas, prices exceeding $1 million for single-family homes have become commonplace.
The following are the housing data for the top ten most expensive real estate markets in 2025 provided by SmartAsset.
Here are the median home prices for the top ten most expensive metropolitan areas in the United States in 2025, according to SmartAsset:
1. San Jose, California: $1.626 million (1.63% increase from 2024; 38.09% increase since 2020);
2. San Francisco, California: $1.181 million (2.38% decrease from 2024; 32.72% increase since 2020);
3. Los Angeles, California: $975,000 (0.56% increase from 2024; 51.24% increase since 2020);
4. San Diego, California: $895,000 (0.58% decrease from 2024; 54.67% increase since 2020);
5. Oxnard, California: $880,000 (4.83% increase from 2024; 44.95% increase since 2020);
6. Seattle, Washington: $728,000 (2.29% decrease from 2024; 47.65% increase since 2020);
7. Honolulu, Hawaii: $724,000 (18.68% increase from 2024; 21.27% increase since 2020);
8. Boston, Massachusetts: $723,000 (5.56% increase from 2024; 52.15% increase since 2020);
9. Bridgeport, Connecticut: $663,000 (12.35% increase from 2024; 54.15% increase since 2020);
10. New York City, New York: $651,000 (5.08% increase from 2024; 53.29% increase since 2020).
What are the reasons behind the soaring housing prices? Jaclyn DeJohn, chief economist at SmartAsset, pointed out that there are many factors driving the rise in housing prices nationwide, but in the most expensive markets, the main reasons are strong demand and limited supply, especially in cities with strong job markets and attractive lifestyles.
In high-tech centers like San Jose and Seattle, high-paying jobs have attracted a large number of homebuyers, but the housing inventory has not kept pace with demand.
Honolulu’s situation is more unique, as limited land resources on the island restrict housing construction, yet the appeal of island living has led to a surge in housing prices, with the median price in 2025 increasing by 18.68% compared to the previous year.
Moreover, zoning restrictions, geographic conditions, and construction delays have made it difficult for builders to meet market demand, further driving up prices. DeJohn stated that when demand far exceeds supply, competition intensifies, naturally leading to higher prices.
With housing prices continuing to rise, homeownership is becoming increasingly out of reach for many. DeJohn warned that amidst rising living costs and intense job market competition, many potential homebuyers are forced to continue renting. She said, “If the pace of price growth exceeds wage and savings growth, the required down payments for homeownership will become increasingly higher, posing a challenge for many families.”