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 . 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.
In a market plagued with persistent concerns relevant to the accessibility and affordability of housing, homebuilders like PulteGroup, Inc. (NYSE: ) 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.
While we acknowledge the potential of PHM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the . 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. 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. 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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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. 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. The average West Village home value is $1,528,051, down 8.
9% since 2023. The neighborhood ranks 23 on our list. 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.
Cobble Hill is a neighborhood in Brooklyn. The neighborhood is costly with an average home value of $1,655,280. The neighborhood in the New York City borough of Brooklyn, DUMBO ranks 20 on our list of the 25 most expensive neighborhoods since it has an average home value of $1,690,565.
Carroll Gardens is another Brooklyn neighborhood that has a typical home value of $1,706,278, down 3.1% since the previous year. New York City’s Flatiron District is a costly neighborhood.
Home prices in the neighborhood are currently as high as $1,823,016. 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. 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.
As of July, the typical home value in the Lower Manhattan neighborhood SoHo is $2,947,270. This ranks the neighborhood in the 15 position on our list. 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. 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. With a typical home value of $3,706,445, Southampton Village ranks as another costly neighborhood in America having the 12 position on our list.
The Stinson Beach housing market is relatively expensive. The neighborhood offers an average home value as high as $3,782,442. 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. 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. Home values in Sagaponack have been gradually increasing since the start of 2024.
The neighborhood ranks 8 on our list with the current typical home value of $6,600,010. 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. 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.
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.
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 4 on our list.
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.
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. 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. Disclosure: None.
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