The 3 Most Overpriced Cities in America, According to Gen Z and Millennials
Affordability is becoming a growing challenge for younger generations. Although they’re often drawn to vibrant cities for their career opportunities and lifestyle perks, high housing costs make living in these urban hubs increasingly difficult.
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GOBankingRates surveyed 1,000 Americans in September 2024 to gain insight into their financial situations and perceptions of the house market. According to the survey, the three most overpriced housing markets for Gen Z and millennials are some of the country’s iconic cities: New York, Los Angeles and San Francisco.
Here’s why these cities top the list — and why many younger Americans feel they are out of reach.
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1. New York City
New York City is widely regarded as the most overpriced housing market — and for good reason. According to data from the Federal Reserve of St. Louis, the median home size of listings in October was 1,626 square feet. Realtor.com reported the sale price per square foot was $903.
Nearly 40% of 18- to 24-year-olds surveyed names New York City as the most overpriced housing market in the country. Despite higher wages, the cost of living in New York, including housing, transportation and taxes, creates financial strain.
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2. Los Angeles
Los Angeles, known for its sprawling neighborhoods and entertainment-driven economy, ranks second on the list. Here, the median home size for October listings was 1,749 square feet, and the sale price was $712 per square foot.
Approximately 29% of 25- to 34-year olds called LA overpriced in the survey. While LA offers slightly more affordable housing tha New York, it’s still out of reach for many younger buyers. The city’s notorious traffic and high living costs make financial balancing even more challenging.
3. San Francisco
San Francisco, a hub for innovation and tech, takes the third spot on the list. The median home size in the area is 1,309 square feet. Homes sold for an average price of $947 per square foot.
While fewer respondents (around 17%) viewed San Francisco as overpriced compared to NYC or LA, the city remains one of the priciest in the nation. Tech workers often have higher incomes, but high housing prices make settling down a daunting task for younger generations.
How Do Other Cities Compare?
Other cities around the country offer a better balance of affordability and opportunity for many people:
Austin, Texas: $542 per square foot
Atlanta, Georgia: $257 per square foot
Madison, Wisconsin: $244 per square foot
These cities have vibrant industries, cultural richness and a high quality of life at a fraction of the cost of NYC, LA and San Francisco. It’s a cost that’s hard to ignore.
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This article originally appeared on GOBankingRates.com: The 3 Most Overpriced Cities in America, According to Gen Z and Millennials
