In this article, we will take a look at the 25 Most Expensive Neighborhoods in America. You can skip our detailed discussion of the US housing market and see the 5 Most Expensive Neighborhoods in America.
Will the Housing Situation Improve for Americans?
Those who wish to settle in their own place in the US remain exposed to extreme unaffordability which has been a part of the market for a long time. While many first-time homebuyers seem to be pushed out of the market due to soaring home prices and an inventory shortage, existing homeowners further restrict their options by holding on to their homes. The situation of affordability is so out of hand that American teachers need to nearly double their annual income to afford a median-priced home.
With the mortgage rates dropping to their lowest in over a year, mortgage refinancing has been on the surge. Although the gap between the current mortgage rates and the 2020 and 2021 rates is huge, the mortgage lock-in effect has kept the for-sale signs less around the markets. However, this effect is expected to subside with every drop in mortgage rates. Although the purchase activity remains restricted due to rising home prices, some experts believe that a drop to 5% or so in the mortgage rates can finally motivate homeowners to move out of their houses.
READ ALSO: 15 Cheapest States to Buy a House in the US and 25 States with the Largest Homeless Populations in the US.
Diverse Housing for the Long-Stuck American Homebuyers
In a market plagued with persistent concerns relevant to the accessibility and affordability of housing, homebuilders like PulteGroup, Inc. (NYSE:PHM) have penetrated across the country with diverse and convenient housing solutions. There is a Pulte home for every kind of buyer.
PulteGroup, Inc. (NYSE:PHM) is one of America’s leading homebuilders which came into existence in 1950 and has successfully delivered almost 750,000 homes across the nation. With operations in 24 states and over 40 major cities, the company has grown to become one of the largest US homebuilders. The homebuilder caters to the diverse needs of first-time, move-up, and active-adult homebuyers through its brands including Pulte, Centex, Del Webb, DiVosta, American West, and John Wieland Homes and Neighborhoods. Through its financial services segment, the company also provides mortgage financing and title agency services.
PulteGroup occupies the status of one of the industry leaders with its strategic goal of delivering high returns over the housing cycle and owning a group of the industry’s best-known brands to serve buyers at every stage of their lives. While Pulte Homes has 70 years of experience in building homes and communities, the Del Webb and DiVosta brands are the recognized leaders in serving over 55 buyers. Simultaneously, first-time homebuyers can seek value for their money in a Centex home and the luxury homebuilder John Wieland Homes and Neighborhoods offers new construction and neighborhoods in some of the most desirable locations. Over the past 5 years, Pulte has delivered higher returns and significantly stronger cash flows despite a slower growth trajectory.
As pointed out by the company’s CEO Ryan Marshall, the current supply imbalance in the market supports the long-term demand trends for housing. 2024 has proved to be a really good year for Pulte as the homebuilder as it continues to start homes at a pace that is consistent with closing 31,000 homes this year. Through the first half of the year, Pulte increased home sale revenues by 10%. The highly anticipated Fed rate cut is further expected to be a powerful tailwind for Pulte as it enters 2025.
A robust financial performance is a demonstration of the company’s strong position in the industry. In Q2 2024, the homebuilder grew its earnings by 18% to a record of $3.83 per share, driven by increases in closings, average sales price, and gross margins. It remains in a good position to benefit from the long-term market dynamics in the US in the form of a critically low inventory. Additionally, the stock is currently trading at 9 times its forward earnings, a discount of 38% to the sector.
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Now that we have understood the current US housing market, let’s move to the 25 most expensive neighborhoods in America.
A birdseye view of a vibrant neighborhood, showcasing the diversity of residents living in a mixed-use community.
Our Methodology:
In order to compile a list of the 25 most expensive neighborhoods in America, we acquired a list of the neighborhoods known to be expensive in terms of housing through several online sources including Reddit. Once we had a preliminary list of such neighborhoods, we sourced their average home values from Zillow, as of July 31. The neighborhoods are in ascending order of their average home values.
Note: This list is not exhaustive and does not reflect our opinion. The ranking is solely based on the opinions of Reddit users and relevant sources.
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25 Most Expensive Neighborhoods in America
25. Brooklyn Heights, New York
Average Home Value: $1,298,127
The neighborhood within the New York City borough of Brooklyn, Brooklyn Heights boasts an average home value of $1,298,127. Hence, Brooklyn Heights is an expensive neighborhood in America.
24. Old Town Carpinteria, California
Average Home Value: $1,397,416
Home values in the Old Town Carpinteria market have increased by 7.9% over the past year. As of July, the average home value in the market is $1,397,416.
23. West Village, New York
Average Home Value: $1,528,051
The average West Village home value is $1,528,051, down 8.9% since 2023. The neighborhood ranks 23rd on our list.
22. Boerum Hill, New York
Average Home Value: $1,570,114
Based in the northwestern portion of the New York City borough of Brooklyn, Boerum Hill is another expensive neighborhood with an average home value of $1,570,114.
21. Cobble Hill, New York
Average Home Value: $1,655,280
Cobble Hill is a neighborhood in Brooklyn. The neighborhood is costly with an average home value of $1,655,280.
20. DUMBO, New York
Average Home Value: $1,690,565
The neighborhood in the New York City borough of Brooklyn, DUMBO ranks 20th on our list of the 25 most expensive neighborhoods since it has an average home value of $1,690,565.
19. Carroll Gardens, New York
Average Home Value: $1,706,278
Carroll Gardens is another Brooklyn neighborhood that has a typical home value of $1,706,278, down 3.1% since the previous year.
18. Flatiron District, New York
Average Home Value: $1,823,016
New York City’s Flatiron District is a costly neighborhood. Home prices in the neighborhood are currently as high as $1,823,016.
17. Snowmass Village, Colorado
Average Home Value: $2,031,712
With respect to housing, Snowmass Village is an expensive place to settle in. The typical home values in the market are up 12.3% as compared to the preceding year.
16. Hudson Yards, New York
Average Home Value: $2,416,412
Home prices in Hudson Yards have witnessed a minor decline of 1% over the past year. However, the typical home value in the market is still $2,416,412 which is high.
15. SoHo, New York
Average Home Value: $2,947,270
As of July, the typical home value in the Lower Manhattan neighborhood SoHo is $2,947,270. This ranks the neighborhood in the 15th position on our list.
14. Crystal Cove, California
Average Home Value: $3,368,078
The 25 most expensive neighborhoods in the US include Crystal Cove as well. As of July 31, the average home value in the market is $3,393,987, up 10.8% over the past year.
13. TriBeCa, New York
Average Home Value: $3,421,558
TriBeCa is another New York-based neighborhood that boasts an average home value of $3,421,558. Home prices in the neighborhood have declined by 4.3% since 2023.
12. Southampton Village, New York
Average Home Value: $3,706,445
With a typical home value of $3,706,445, Southampton Village ranks as another costly neighborhood in America having the 12th position on our list.
11. Stinson Beach, California
Average Home Value: $3,782,442
The Stinson Beach housing market is relatively expensive. The neighborhood offers an average home value as high as $3,782,442.
10. Manalapan, Florida
Average Home Value: $4,168,887
Manalapan’s typical home value has risen by 5.6% over the past year. According to Zillow, this value is $4,168,887 as of this July.
9. Lacy Estates, California
Average Home Value: $5,040,180
Lacy Estates is another costly neighborhood in the US for homebuyers. The typical Lacy Estates home value stands at $5,017,738 as of July, up 6.0% year-over-year.
8. Sagaponack, New York
Average Home Value: $6,600,010
Home values in Sagaponack have been gradually increasing since the start of 2024. The neighborhood ranks 8th on our list with the current typical home value of $6,600,010.
7. Golden Beach, Florida
Average Home Value: $7,687,101
The increase in Golden Beach’s average home value since 2023 was recorded at 3.0% in July. As of now, this value stands at $7,687,101 which is significantly high.
6. Trousdale Estates, California
Average Home Value: $7,925,904
As reported by Zillow, the average Trousdale Estates home value is $7,925,904 as of July. This ranks the neighborhood among other expensive US neighborhoods for housing.
5. Palm Island, Florida
Average Home Value: $8,451,096
With a typical home value of $8,451,096, Palm Island ranks among the most expensive neighborhoods in the US. This value has also climbed by a slight 0.4% over the past year.
4. Shady Canyon, California
Average Home Value: $8,853,143
Home values in Shady Canyon have gone up by 13.8% since 2023. Currently, the typical home value in Shady Canyon is $8,853,143 which ranks it 4th on our list.
3. Beverly Hills Gateway, California
Average Home Value: $10,211,734
Beverly Hills Gateway comes second among the most costly neighborhoods in the United States. As of July, Beverly Hills Gateway boasts an average home value of $10,211,734 which has decreased by 5.5% year-over-year.
2. Jupiter Island, Florida
Average Home Value: $10,293,976
As of July 31, Jupiter Island in Florida has an average home value of $10,293,976. This home value largely exceeds the national average.
1. Port Royal, Florida
Average Home Value: $16,083,816
Port Royal ranks at the top of the 25 most expensive neighborhoods in America. According to Zillow, the typical home value in the neighborhood is as high as $16,083,816 although it has declined by 4.6% over the past year.
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Disclosure: None. This article was originally published at Insider Monkey.