Even as elevated mortgage rates weigh on demand, these ten major metros continue to see median home prices outpace incomes — with price momentum firmly favoring sellers. Here's where affordability pressures remain most acute.
1. New York, NY One of the largest metros where price momentum remains elevated and affordability pressure persists. (Very high)
2. Los Angeles, CA Ongoing high median prices despite periodic softening in demand — South Bay included. (Very high)
3. Chicago, IL Steady value increases and supply tightness are driving significant affordability gaps. (High)
4. Philadelphia, PA Price growth continues to outpace income gains through 2026. (High)
5. San Francisco, CA
A steep price base and severely limited inventory keep affordability out of reach for most buyers. (Very high)
6. San Jose, CA Among the highest metro home prices nationwide, creating an especially challenging affordability environment. (Extreme)
7. Miami, FL Strong demand and limited supply are keeping prices persistently (High)
8. Dallas–Fort Worth, TX Elevated prices persist despite slowing growth relative to the prior cycle's peak. (Moderate high)
9. Houston, TX Inventory tightening has limited affordability improvements that buyers were hoping for. (Moderate–high)
10. Washington, D.C. Continued market strength and tight supply maintain significant affordability strain. (High)
Los Angeles and South Bay in particular remain one of the most supply-constrained markets in the country. If you're navigating this market as a buyer or seller, local expertise matters more than ever.
South Bay Real Estate Experts
Ready to make sense of the market? Rusnell Real Estate specializes in South Bay communities - from Manhattan Beach to Redondo Beach, Torrance, and beyond. Let's talk strategy.
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