1. Nevada
Las Vegas isn’t just for high-stakes poker anymore — it’s also home to a real estate game that feels like a gamble, according to Claire Murashima of WHQR Public Media. Median home prices in the Vegas metro area have climbed above $450,000, more than double what they were a decade ago. Even modest homes in the suburbs are fetching prices that seem out of sync with local wages.
The problem is compounded by limited inventory and skyrocketing rent. As investors snap up single-family homes to use as Airbnb properties or rental income, locals find themselves edged out. Water shortages and infrastructure stress also make long-term growth uncertain. In Nevada, the bet on housing is starting to feel more like a fantasy novel with an unpredictable ending.
2. Florida
Florida’s market is sizzling — and not just from the sun. As of late 2024, median home prices in the state reached nearly $490,000, according to Omar Mohammed of Newsweek, and cities like Miami and Tampa have seen double-digit year-over-year increases. This surge is partly fueled by transplants from the Northeast and California seeking sunshine and lower taxes. But ironically, Florida’s affordability is now more illusion than reality.
The state also faces growing insurance costs due to hurricane risks and climate change. In some cases, homeowners are paying over $10,000 annually just to insure their properties. Combine that with property taxes and rapidly rising rents, and you’ve got a financial picture that feels more dystopian than dreamlike. The fantasy here is thinking this growth can continue without a hard reckoning.
3. Idaho
Idaho used to be the well-kept secret of the Mountain West — affordable, quiet, and ruggedly beautiful. But during the pandemic, a wave of remote workers flooded in, and Boise, in particular, became ground zero for runaway prices. Between 2020 and 2022, home prices in Boise rose nearly 70%, and while the market has cooled slightly, it remains far above historical norms, according to Mark Strassmann of CBS News.
This sharp spike has left locals feeling like extras in someone else’s fairy tale. Wages in Idaho haven’t kept pace at all, and renters are increasingly squeezed. Many long-time residents have been priced out entirely or forced into smaller, less desirable towns. The Boise bubble is a perfect example of how a charming, accessible city can suddenly become inaccessible almost overnight.
4. Montana
Yes, even Big Sky Country is caught in the housing market whirlwind, according to Cassidy Powers of KBZK. Bozeman, for example, now boasts a median home price over $750,000 — for a town with fewer than 60,000 residents. Wealthy remote workers seeking scenic views and isolation turned Montana into a hot destination during COVID, but the demand never fully cooled off.
The result? Construction has lagged far behind demand, especially since labor and materials are harder to come by in rural states. Locals, including teachers and police officers, are struggling to find affordable housing within commuting distance of work. In some towns, it’s not uncommon for essential workers to live in RVs or trailers while waiting for better options.
5. Texas
Texas has long marketed itself as the land of affordable living, but that story’s wearing thin. In cities like Austin and Dallas, home prices have doubled in the past decade. Austin’s median home price hit over $550,000 in 2024, up from just under $300,000 in 2014. Tech booms and population growth have turned Texas into a real estate powerhouse — and a pressure cooker.
The trouble is, wages haven’t kept up in many sectors. What was once a bastion of affordability now has bidding wars, inflated rent, and gentrification pushing out lower-income residents. And despite having lots of land, zoning and permitting delays have hampered new housing. The myth of endless Texas land is now colliding with very real supply constraints.
6. Colorado
Colorado’s natural beauty and active lifestyle have always been a draw, but they now come at a sky-high cost. Denver’s median home price has climbed past $600,000, and smaller mountain towns like Aspen or Vail have prices that would make a hedge fund manager wince. Even Pueblo — once a budget-friendly alternative — has seen home prices surge by more than 40% since 2020.
Add to that a growing population and restrictive building codes in high-altitude zones, and you’ve got a recipe for fantasy pricing. Many young families are leaving Colorado altogether, citing affordability as the main reason. Meanwhile, short-term rentals have swallowed up much of the available housing stock in ski towns. The Rocky Mountain high now comes with an equally lofty price tag.
7. California
California’s housing prices have long been the stuff of legend, but lately, they’ve jumped genres into full-blown fantasy. The median home price statewide crossed $900,000 in early 2024, and that’s not for ocean-view mansions — we’re talking about modest, two-bedroom homes in areas like San Jose or Irvine. Even tech workers are priced out of markets like San Francisco and Palo Alto. Rent isn’t much better, with the average one-bedroom in San Francisco still hovering over $3,000 a month.
What makes California feel so surreal is the disparity between wages and home prices. While it leads the nation in high-paying jobs, housing demand has wildly outpaced supply due to restrictive zoning, NIMBYism, and environmental review delays. People with six-figure incomes still struggle to qualify for basic homes. The dream of a white picket fence is now more like a unicorn sighting.
8. Arizona
Arizona’s housing market is hotter than a Phoenix sidewalk in July. The metro Phoenix area has seen home prices jump nearly 60% since 2020, with median home prices now pushing $475,000. The influx of out-of-state buyers and investors hasn’t let up, creating massive competition for a limited supply of homes.
The heat doesn’t stop there — literally or figuratively. Water scarcity issues are beginning to limit future development, especially in fast-growing suburbs. Renters, too, are feeling the squeeze, with prices up more than 30% in many cities since 2021. The idea that Arizona is a haven for affordable desert living? Let’s just say that chapter has closed.
9. Washington
Seattle has long been one of the most expensive housing markets in the country, but even surrounding areas like Tacoma and Spokane have now joined the elite (and unaffordable) club. Median home prices in Seattle are well over $850,000, and even a “starter home” often requires a six-figure salary and a healthy down payment. What’s more, interest from tech workers has expanded outward, jacking up prices across the state.
The mismatch between average income and housing costs is staggering. Many buyers are turning to manufactured homes or moving farther into rural areas. Even then, they face competition from buyers willing to waive inspections and pay in cash. Washington may be evergreen, but affordable housing there is becoming a rare species.
10. Utah
Utah’s housing boom has turned Salt Lake City into one of the least affordable cities in the U.S. As of early 2025, the median home price in Salt Lake was just under $570,000 — a 75% increase from 2015. That’s despite relatively modest median household incomes statewide. The housing squeeze is most intense along the Wasatch Front, where developable land is boxed in by mountains and protected areas.
Population growth and a strong local economy have driven demand through the roof. But infrastructure and zoning haven’t kept pace, especially in smaller cities like Ogden and Provo. As a result, middle-income families are increasingly priced out of the market. Utah’s family-friendly vibe has taken on a surreal twist when families can’t afford to buy a home.
11. Oregon
Portland’s housing woes have spread beyond city limits. While Portland proper has seen home prices hover around $550,000, suburban and rural parts of Oregon are now grappling with similar affordability issues. Bend, for instance, saw home prices spike more than 20% year-over-year at several points between 2021 and 2023.
Add to that a statewide housing shortage and restrictive urban growth boundaries, and supply simply can’t keep up with demand. Many Oregonians who once fled Portland for cheaper living are now boxed out even farther from job centers. Rents are also climbing fast, driven in part by limited new construction. The idyllic Pacific Northwest dream now comes with a steep price of entry.
12. Tennessee
Tennessee was once the poster child for affordable Southern living. But cities like Nashville and Chattanooga have seen prices skyrocket, with Nashville’s median home price topping $475,000 in 2024 — up from just $250,000 in 2015. Much of that growth is due to inbound migration and investors scooping up properties for short-term rentals.
The housing boom has made it harder for locals, especially renters, to stay afloat. New construction hasn’t caught up with demand, and even suburban areas are no longer cheap. Tennessee’s allure hasn’t faded — but the price tag to live there has gone full fantasy. It’s increasingly hard to square the state’s low-wage economy with its high-priced housing market.
13. Hawaii
Last but absolutely not least: Hawaii. The Aloha State has always been expensive, but today’s market has transcended reality. On Oahu, the median single-family home price is over $1 million, and even condos fetch $500,000 or more. Locals are being priced out in record numbers, with many leaving for the mainland in search of affordable living.
Vacation rentals and foreign investment play a huge role in keeping prices high. Meanwhile, strict land-use regulations and limited buildable space mean supply remains stagnant. For many native Hawaiians and working families, the idea of owning a home is slipping from dream into myth. Paradise, it seems, now comes at an almost mythical price.
