LOS ANGELES - Housing costs are skyrocketing in many parts of the United States, but it seems California cities are getting hit the hardest compared to the rest of the country, according to a new report.
The median sales price of U.S. homes increased from $322,600 in the second quarter of 2020 to $440,300 in the second quarter of 2022 (a 36.5% increase), according to data from the Federal Reserve Bank of St. Louis.
The report from Consumer Affairs analyzed 2021 data from the U.S. Census Bureau against two metrics - median monthly housing costs and median owner-occupied unit values - to determine which U.S. cities are the most expensive.
To the surprise of no one, California cities dominated the list, ranking four out of the top five spots.
San Jose: $2,463
San Jose ranked first as the most expensive city in the U.S., according to the report. In San Jose, median monthly housing costs (such as utilities, insurance, and rent or mortgage payment) are $2,463, and the median household income in San Jose is $126,377, per year, analysts found.
San Jose also has the second-highest median real estate taxes paid ($8,477) of any city in the report.
San Francisco: $2,337
San Francisco took the second spot behind San Jose. Here, monthly housing costs are $2,337 and median annual income is $121,826. According to the report, residents in San Francisco spend about 23% of their monthly incomes on housing costs.
However, San Francisco surpasses San Jose in median real estate taxes ($8,545) and home values ($1,306,400).
San Diego: $2,044
San Diego followed close behind and ranked third. Here, monthly median housing costs were $2,044 and median incomes were $93,042 per year. Here, housing costs make up more than 26% of San Diego residents' incomes.
Median home value here is more than $535,000 less than San Francisco's, and median gross rent ($1,962) and real estate taxes paid ($5,427) are also much lower.
Seattle and Los Angeles rounded out the top 5.
At number four, Seattle's monthly housing costs are $1,984. Median real estate taxes paid ($6,503) and owner-estimated home values ($848,100) are higher here than in San Diego, however. But according to the study, median monthly housing costs ($1,984) are still a little lower, and median household incomes are almost $18,000 higher.
Los Angeles: $1,845
Los Angeles rounded out the top five, with monthly housing costs around $1,845.
Los Angeles comes in under Seattle in terms of median home values ($812,800) and median monthly housing costs ($1,845). However, because Los Angeles residents have a median household income almost $40,000 lower than Seattle's, it has the highest monthly housing costs relative to income of any city in the list's top 10.
To see the full report, tap or click here.