Hawaii has shattered real estate records to become America’s most expensive housing market, with the average home listing price soaring to $1,540,154 over the past year, according to new research by Craftsmen Home Improvements.
The study, analyzing Realtor.com data from June 2024 to May 2025, reveals a growing divide between luxury coastal states and affordable interior markets. Nine states now average over $1 million per home, underscoring widening geographic disparities in U.S. housing affordability.
Coastal states dominate million-dollar club
Trailing Hawaii, New York ranks second with an average price of $1,492,267, though its median listing price of $654,987 highlights deep contrasts between Manhattan’s luxury market and the rest of the state.
California follows closely at $1,472,499, driven by persistently high prices from San Diego to San Francisco. Massachusetts secures fourth place with homes averaging $1,423,353, reflecting a consistently expensive market across towns and suburbs.
Inland states are also joining the elite ranks: Montana and Wyoming placed fifth and sixth respectively, both surpassing the $1 million threshold as limited housing supply and luxury ranch properties drive up averages.
Rounding out the top ten are Connecticut, Colorado, Rhode Island, and Utah, each with average prices near or above $1 million. Notably, Rhode Island—America’s smallest state—achieves ninth place with just 1,251 active listings, emphasizing how scarcity fuels soaring costs.
| Rank | State | Average Home Price | Median Home Price | Available Listings |
|---|---|---|---|---|
| 1 | Hawaii | $1,540,154 | $799,000 | 5,507 |
| 2 | New York | $1,492,267 | $654,987 | 33,308 |
| 3 | California | $1,472,499 | $763,250 | 58,263 |
| 4 | Massachusetts | $1,423,353 | $779,700 | 8,431 |
| 5 | Montana | $1,161,160 | $632,000 | 4,739 |
| 6 | Wyoming | $1,116,140 | $475,500 | 2,166 |
| 7 | Connecticut | $1,063,810 | $507,497 | 4,144 |
| 8 | Colorado | $1,057,182 | $591,000 | 22,675 |
| 9 | Rhode Island | $1,001,699 | $559,950 | 1,251 |
| 10 | Utah | $979,551 | $597,000 | 11,164 |
Heartland remains haven for budget buyers
At the opposite end of the spectrum, West Virginia stands as the most affordable state, with homes averaging just $321,181—almost five times cheaper than Hawaii. Iowa and Mississippi follow close behind, keeping America’s heartland the last refuge for buyers seeking sub-$400,000 listings.
Meanwhile, Florida represents a rare mix of availability and moderate pricing, boasting 156,974 active listings and an average home cost of $858,175, ranking 16th nationally. The Sunshine State’s vast housing supply creates opportunities that other coastal regions lack.
Expert: Geography and scarcity drive extremes
“These housing price variations reflect broader economic factors including local job markets, geographic desirability, and supply constraints,” said Dan Bydlon, President and Owner of Craftsmen Home Improvements.
“Coastal states and areas with natural amenities command premium prices. What’s striking is how small, sparsely populated states like Montana and Wyoming show up among the top ten—proof that limited inventory and vacation demand can push values sky-high.”
Methodology
The analysis draws on state-specific housing data from Realtor.com, covering June 2024 – May 2025, to identify the U.S. states with the highest average and median home listing prices.