Home services

6 US Cities The place Shopping for a Residence Is Surprisingly Costly

12875116 / iStock.com

12875116 / iStock.com

When you’re planning to buy a home, there are some cities that everyone who isn’t rich knows to scratch off their short list before they even call a real estate agent.

“When people think of expensive real estate markets, cities like New York, San Francisco and Los Angeles often come to mind,” said Juan Cava, real estate investor and CEO of Cash for Your Home. “However, in recent years, several other cities across the United States have seen a surge in home prices, making them surprisingly costly for potential buyers.”

Read Next: I’m a Real Estate Agent: 3 States Where You Should Sell Your Property in the Next 5 Years

Find Out: 4 Genius Things All Wealthy People Do With Their Money

A confluence of factors has conspired to put the following cities mostly out of reach for average middle-class homeowners. Although these locations aren’t yet infamous for their prohibitive housing costs, there’s a good chance you can no longer afford them.

When reading, keep in mind that the national average home price is $358,734.

Jennifer_Sharp / Getty Images/iStockphotoJennifer_Sharp / Getty Images/iStockphoto

Jennifer_Sharp / Getty Images/iStockphoto

Boise, Idaho

Boise’s small-town charm might give you the impression that it doesn’t come with big-city housing costs. There was a time when that was true, but today, buyers have to dig deep.

“Once considered an affordable alternative to the bustling West Coast cities, Boise has experienced a significant real estate boom,” Cava said. “The city’s attractive quality of life, coupled with an influx of remote workers and retirees, has driven demand sky-high. As a result, home prices have soared, making Boise one of the more expensive markets in the country.”

The average home value in Boise is nearly $490,000.

Check Out: 9 Major US Cities Where Buying a Home Is Surprisingly Cheap

Learn More: Don’t Buy a House in These 5 US Cities That Have Shrinking Populations and Fewer Buyers

Jonathan Ross / Getty Images/iStockphotoJonathan Ross / Getty Images/iStockphoto

Jonathan Ross / Getty Images/iStockphoto

Nashville, Tennessee

According to Business Insider, the population of Nashville grew by 20% between 2010 and 2020 — and all that new demand means Tennessee’s capital no longer provides a respite from expensive cities on the coast.

“Nashville’s popularity as a cultural and economic hub has led to a rapid increase in housing costs,” Cava said. “The city’s thriving music and healthcare industries attract a steady stream of newcomers. This demand, combined with limited housing inventory, has caused home prices to climb, making Nashville surprisingly expensive for homebuyers.”

The average home there now costs $441,700.

For You: 5 Types of Homes That Will Plummet in Value in 2024

Mark Howard / Getty Images/iStockphotoMark Howard / Getty Images/iStockphoto

Mark Howard / Getty Images/iStockphoto

Raleigh, North Carolina

Like Nashville, Raleigh once offered a break from the burdensome prices of Northeastern cities, but according to CNBC and SmartAsset, it’s now one of the 25 most expensive cities in America.

“Raleigh is another city where home prices have risen more than expected,” Cava said. He also mentioned the region’s “Research Triangle,” which churns out high-paying jobs in a dynamic economy.

“The influx of tech jobs and educational institutions has made it a hotspot for young professionals and families,” Cava said. “This demand, along with limited housing availability, has caused home prices to increase significantly, surprising many potential buyers.”

The average home in North Carolina’s capital city now costs $444,456.

DenisTangneyJr / Getty Images/iStockphotoDenisTangneyJr / Getty Images/iStockphoto

DenisTangneyJr / Getty Images/iStockphoto

San Bernardino, California

Located east of Los Angeles, San Bernardino saw generations of buyers flock there to escape the suffocating cost of America’s second-largest city, but the deals are getting hard to find.

“Often overshadowed by its more famous neighbors, the city has experienced sharp price hikes in housing,” said real estate lawyer David J. Greiner, president of Greiner Law Corp.

Zillow reports that the average home value increased by 8% over the last year alone — and that was hardly an anomaly.

“Data indicate that the median home price has surged by double-digit percentages over the past few years, driven by people moving inland for more affordable options, which ironically, are becoming less affordable,” Greiner said.

The average home in San Bernardino now costs over $485,000.

Jacob Boomsma / Getty Images/iStockphotoJacob Boomsma / Getty Images/iStockphoto

Jacob Boomsma / Getty Images/iStockphoto

Colorado Springs, Colorado

Like San Bernardino, Colorado Springs was long a more affordable alternative to a bigger, more expensive adjacent city. But similarly, relentless demand sent prices soaring.

“Although not as pricey as nearby Denver, Colorado Springs has seen substantial growth in home prices,” said Colten Claus, a Realtor and associate broker at 8z Real Estate. “The city’s appeal for its scenic beauty, outdoor activities and lower cost of living relative to Denver has attracted many new residents, pushing up property values.”

The average home value in Colorado Springs is $459,076.

Read More: I’m a Real Estate Agent: Buy Property in These 5 Fast-Growing Cities To Be Rich in 5 Years

DianeBentleyRaymond / Getty ImagesDianeBentleyRaymond / Getty Images

DianeBentleyRaymond / Getty Images

Bozeman, Montana

For those of you who are considering leaving the big city for Big Sky Country, the secret’s out on Bozeman — and the price is sky-high.

Several experts who spoke with GOBankingRates mentioned the Montana city of 56,000, where the average home now costs roughly $750,000, which is approaching notoriously expensive cities like Seattle.

According to the Bozeman Real Estate Group, the median home price there nearly doubled in the last six years. Familiar culprits helped steer the trend — inventory is tight and the cost of development is high — but one factor weighs heavier than all the rest.

A flood of out-of-state money supercharged competition and gobbled up scant housing supply as the pandemic-era shift to remote work allowed people to earn a living from anywhere — because when anywhere is an option, Bozeman’s famous quality of life is hard to resist.

All average home prices are from Zillow.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: 6 US Cities Where Buying a Home Is Surprisingly Expensive

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button