Realtors Predict These 8 Cities Will Become Unaffordable by 2026

Home prices are rising nationwide. In May, the national median list price hit $440,000, with homes spending about 51 days on the market, according to realtor.com. But while prices are climbing everywhere, some cities are seeing sharper increases and may soon be out of reach for many buyers.

When moving to an increasingly expensive city, it can be harder to protect your home budget. To help prospective homeowners make informed decisions, we asked real estate experts which cities are on track to become unaffordable by 2026.

Charleston's popularity shows no signs of fading, even as homes spend more time on the market and inventory inches up. Supply remains historically low, and sales continue at a steady pace, driven by strong demand.

Over the past decade, the region's population growth has brought an influx of wealth. This drives up home prices and the overall cost of living in an already expensive area.

"Charleston has always been a dynamic market," says Charles Baarcke, a REALTOR® with The Cassina Group. "Such growth has impacted prices, affordability, and cost of living. It seems the desire to be in Charleston is not slowing down."

Milwaukee may offer a desirable Midwest lifestyle, but it's becoming harder for many to afford. Low inventory and rising prices have made the market highly competitive for buyers.

As of May, the median sale price was around $240,000 — well below the national median, but up 20% from the previous year. Local experts predict prices will climb another 2.4% by year's end. With mortgage rates holding steady around 7% nationally, Milwaukee buyers aren't likely to catch a break.

Sacramento's population has grown 8.2% over the past decade, fueled by its relative affordability and proximity to San Francisco. But that growth has driven up demand, making the housing market increasingly competitive.

As of April, inventory sat at just two months, a clear sign of a strong seller's market. Half of all homes sold above asking price, with many going pending in just two weeks.

While still more affordable than San Francisco or San Jose, Sacramento's window of relative affordability may be closing. Buyers seeking a California lifestyle may want to act quickly or broaden their search.

Seattle's housing market remains one of the most competitive and expensive in the country. The median sale price is already more than double the national average, and single-family homes priced at $1 million or more are becoming the new normal.

High interest rates and broader economic uncertainty have dampened some buyer confidence, but demand is still strong. With a cost of living 45% above the national average, affordability continues to slip further out of reach for many would-be Seattleites.

Nashville attracted thousands during the pandemic, thanks to its lower taxes, cost of living, and strong health care and education systems. Many buyers came from higher-cost markets and had an edge in competitive, multiple-offer situations.

While inventory is beginning to rise, it still isn't enough to meet ongoing demand. "Nashville was overdue for a price correction," says Katelyn Henderson, a REALTOR® with Refined Realty. "The pandemic market pushed that, and it felt so significant because we were already behind."

Much of the new inventory is coming from locals making lifestyle-driven moves. Henderson cautions that prices are unlikely to fall as long as buyers continue to pay current market rates.

Boise saw a major boom during the pandemic, drawing homebuyers with its lower cost of living, natural beauty, and strong job market. While the frenzy has calmed down, the city remains highly competitive as population growth continues and inventory remains low.

Home prices are still rising, though at a more sustainable pace. April's median sale price was around $500,000, just a 2.2% increase year over year. The biggest challenge? A shortage of affordable housing, constrained by high construction costs. New units aren't coming online quickly enough to meet demand.

This vibrant college town has a lot going for it, with a strong job market, high quality of life, proximity to Research Triangle Park, and steady population growth. All this fuels a competitive housing market with no signs of slowing down.

According to Zillow, home values are up 1.2% year over year. In April, the median sale price hovered around $600,750, a 13% increase from 2023. Well-priced homes in desirable areas often receive multiple offers and go pending within a week. If current conditions continue, Chapel Hill could become out of reach for many buyers.

Bethesda remains a desirable location for those wanting suburban proximity to Washington, DC, but without the city hassle. But that high demand comes at a cost.

According to data from the Greater Capital Area Association of REALTORS® (GCAAR), inventory in Montgomery County is 2.2 months, just half of what is needed to meet current demand. As long as inventory is low, demand will remain high, and prices will keep increasing.

"With high interest rates, high labor costs, and high material costs due to tariffs, this is still a recipe for rising home prices putting pressure on housing affordability," says Russell Brazil, President-Elect of GCAAR.

When considering a move, it's important to look beyond just home prices. Property taxes, cost of living, and other expenses can make a city more expensive than it first appears. It's important to assess the bigger picture before planning a relocation and prepare yourself financially if you do decide to move.  

Also, keep in mind that real estate markets are hyper-local. One neighborhood may be booming while another remains affordable in comparison. Do your research and weigh the full picture before making a decision.