With the price of U.S. homes reaching an all-time high, just how expensive can the typical home be in some cities?
Try several times the $408,776 median price reported Monday by Redfin paid for a home sold in U.S. in June. That U.S. number is already up 2.2% from a year earlier, according to the online real estate brokerage.
But last month in San Francisco, the median home price hit a whopping $1,724,835, Redfin found. That’s a 9.2% jump from June 2025, the biggest increase of any major U.S. metropolitan area. In nearby San Jose, California, the median price was nearly as high, $1,615,164.
In West Palm Beach, Florida, the median price for June wasn’t quite so high, reaching $548,358, an 8.6% rise from a year ago, the third-highest nationwide. What’s driving housing costs up in both places is the luxury home market, Redfin said.
“Billionaires, executives and other ultra-wealthy Americans are moving to Florida and buying up expensive homes due to its favorable tax environment, sunny climate and beachfront lifestyle," Redfin said of the home to President Donald Trump’s Mar-a-Lago resort.
Buyers in West Palm Beach pay the nation’s biggest premium on luxury homes, defined as estimated to be in the top 5% of their metro area’s price range, a separate Redfin analysis showed.
A typical luxury home in West Palm Beach sold for $4.5 million during the three months ending in May, 8.9 times more than a typical non-luxury home there. Miami’s big-money buyers ran into a similar situation, paying 8.8 times more than the typical non-luxury home cost.
The Bay Area, a pricey place for all homebuyers, is dealing with the impact of the AI boom. Well-off workers in the rapidly growing industry are confronting prices that are “just astronomical,” Daryl Fairweather, Redfin’s chief economist, recently told the BBC.
The British news service described a young OpenAI employee interested in purchasing a three-bedroom apartment priced at nearly $3 million by a seller willing to consider shares in one of the city’s artificial intelligence companies instead of cash.
“The value (of the property) is questionable, but I would like to buy,” the employee told the BBC.
The differential between luxury and non-luxury home prices isn’t as pronounced in the Bay Area, with buyers through the three months ending in May paying 4.3 times as much for a property in the luxury category, Redfin said. Nationwide, luxury buyers spent 3.6 times as much.
The studies done by Redfin focused on the nation’s 50 largest metropolitan areas and did not include any place in Utah.
The new numbers released by Redfin follow last week’s findings by the National Association of Realtors showing Americans paid the most ever, $440,600 for the typical existing home in June, a 1.8% increase over the same month a year ago.