1. Key West, Florida
Key West is a sun-soaked destination with a serious affordability problem. Locals are grappling with sky-high housing costs and low wages tied to seasonal tourism work. The island’s geography limits expansion, so rental units are scarce and pricey. Many longtime residents have been forced to leave for the mainland.
Still, tourists pour in for Hemingway lore, conch fritters, and endless summer vibes. The historic Old Town, pastel homes, and vibrant Duval Street feel like paradise to out-of-towners. Hotels are fully booked, and sunset cruises are thriving. But the people who serve the drinks and clean the rooms are barely scraping by.
2. San Francisco, California
San Francisco’s tech boom has driven up costs to eye-watering levels. Median rents exceed $3,000 per month, making it one of the least affordable cities in the U.S. Even well-paid professionals feel squeezed, and working-class families are being pushed out. Homelessness and economic disparity are impossible to ignore.
Yet tourists still come for the Golden Gate Bridge, Alcatraz, and world-class dining. The city’s charm remains strong from the outside looking in. It’s easy to fall in love with the cable cars and Painted Ladies. But behind the postcard lies a city divided by income and opportunity.
3. Jackson Hole, Wyoming
This mountain town is beloved by tourists for its wildlife, skiing, and proximity to Yellowstone. But it’s also one of the most expensive small towns in America. Locals often can’t compete with wealthy second-home buyers and high-end developers. Many workers live across state lines in Idaho and commute long distances.
Visitors might be sipping wine in a cozy lodge, unaware of the housing crisis. The area’s natural beauty draws big crowds and big wallets. While the tourism economy thrives, local families are getting priced out. The gap between rich visitors and struggling residents is growing wider every season.
4. Honolulu, Hawaii
Living in paradise comes at a steep price for locals. The median home price in Honolulu hovers around $800,000, making it nearly impossible for many residents to buy or even rent comfortably. Wages haven’t kept up with this cost of living, leading to an increasing exodus of native Hawaiians. Many locals work multiple jobs just to stay afloat.
Meanwhile, tourists flock to Waikiki, Pearl Harbor, and the North Shore year-round. They fill the beaches, enjoy high-end resorts, and spend freely on luaus and shaved ice. The irony? Visitors often see paradise, while locals see sacrifice.
5. Aspen, Colorado
Aspen isn’t just a ski town—it’s a playground for the ultra-wealthy. Home prices here average well over $3 million, pricing out even middle-class professionals. Many of the people who keep the town running—teachers, firefighters, service workers—have to live miles away. Affordable housing is scarce, and some workers even live in campers or shared dorms.
Tourists, on the other hand, don’t seem to notice the housing crisis. They flock here for powdery slopes, luxury boutiques, and après-ski cocktails. The town’s glittery appeal distracts from the deep inequality just under the surface. For visitors, Aspen is idyllic; for many locals, it’s unsustainable.
6. Santa Barbara, California
Santa Barbara looks like a Mediterranean postcard—but affordability is a serious issue. The median home price is over $1.5 million, far outpacing local incomes. Service workers, even public school teachers, struggle to live anywhere near where they work. Many residents are forced to commute in from less expensive towns hours away.
Tourists, meanwhile, stroll through wine country, upscale shops, and pristine beaches. They see relaxation and Spanish Revival beauty, not the labor force barely holding on behind the scenes. The hotels are full, and the economy thrives on visitor spending. But for locals, every year brings more displacement.
7. Charleston, South Carolina
Charleston’s charm has fueled a tourism boom—and a housing crisis. The influx of short-term rentals and rising real estate prices has made it hard for locals to stay in the city center. Many Black families with deep roots in the city have been displaced by gentrification. Wages in tourism and hospitality don’t come close to keeping up.
Visitors are enchanted by cobblestone streets, antebellum homes, and shrimp and grits. It’s easy to lose yourself in the historic beauty and Southern hospitality. But those charming Airbnb rentals are often owned by out-of-state investors. And the locals who give Charleston its soul are being pushed farther to the margins.
8. Sedona, Arizona
Sedona’s red rocks and spiritual energy draw millions each year—but living there is a different story. Home prices have surged due to demand for vacation properties and short-term rentals. The workforce is small, and jobs are often tied to low-wage service industries. Affordable rentals are few and far between.
Still, tourists come in droves to hike, heal, and photograph the stunning desert landscape. Wellness retreats and vortex tours bring in big bucks. Hotels are booming, and new-age shops line the main drag. But the people keeping the town running are often priced out of the experience themselves.
9. New Orleans, Louisiana
New Orleans is a city of culture, music, and history—but affordability is increasingly out of reach for locals. Post-Katrina redevelopment and tourism growth have led to rising rents and property taxes. Longtime residents, particularly in historically Black neighborhoods, are being displaced. The city’s economy is heavily reliant on tourism, which doesn’t always translate to livable wages.
Tourists, however, see a party town with endless beignets, brass bands, and Bourbon Street nightlife. They come for Mardi Gras and never see the daily struggles behind the scenes. Short-term rentals and hotels keep growing, even as locals are priced out of their own neighborhoods. The city thrives on its authenticity—yet that very authenticity is at risk.
10. Moab, Utah
Moab is a stunning gateway to Arches and Canyonlands National Parks, and tourists love it. But it’s increasingly difficult for locals to find year-round housing they can afford. Many homes have been converted into short-term rentals, creating a serious shortage. Workers in the tourism industry often live in trailers or shared housing.
Meanwhile, tourists pour in with RVs, hiking boots, and Instagram dreams. The outdoor economy here is booming—just not for the people who live in it. Gas stations and restaurants are always hiring, but the pay doesn’t match the cost of living. Moab might be an outdoor paradise for visitors, but it’s a housing desert for its residents.
11. Miami, Florida
Miami has become an international hotspot, but it’s getting harder for locals to keep up. Housing costs have skyrocketed in recent years, especially after the pandemic brought in remote workers from pricier cities. Neighborhoods once considered affordable have gentrified almost overnight. Wages haven’t seen the same growth.
Tourists, of course, still come for the beaches, nightlife, and Latin flavor. They party in South Beach and snap selfies in Wynwood’s art district. Luxury hotels and rooftop bars are thriving. But just blocks away, working families are being squeezed out.
12. Telluride, Colorado
Telluride might be small, but it has big-city housing problems. Its scenic beauty and ski slopes have attracted a wealthy crowd, driving up prices far beyond local incomes. Service workers struggle to live nearby, often commuting hours each day. Affordable housing developments have long waitlists, if they exist at all.
Tourists love Telluride’s charm, festivals, and dramatic mountain views. They drop money on gourmet food, guided hikes, and boutique shops. But behind that quaint Main Street, the community is straining. Tourism pays the bills, but not always the people.
13. New York City, New York
New York is iconic, but living here is far from easy. Rent control battles, rising prices, and stagnant wages have made it tough for many locals. Essential workers and creatives are often priced out of the very neighborhoods they helped define. The pandemic may have changed things temporarily, but prices rebounded fast.
Tourists, though, still flock to Times Square, Broadway, and Central Park. They marvel at the skyline and never think about the rent. While the city puts on a dazzling show, many New Yorkers are juggling second jobs to stay afloat. The energy is real—but so is the economic stress.
14. Napa, California
Napa Valley is synonymous with wine country luxury, but locals are feeling squeezed. The influx of wealthy tourists and second-home buyers has made housing nearly unaffordable. Jobs in hospitality and agriculture don’t pay enough to live where you work. Commutes from nearby towns have become the norm for many.
Visitors sip $200 cabernets and float in vineyard-side spas without seeing the divide. The region’s rural charm hides a growing class gap. Wineries thrive, yet field workers often live in overcrowded housing or trailers. For tourists, it’s indulgence; for many residents, it’s survival.
15. Lake Tahoe, California/Nevada
Lake Tahoe’s alpine beauty masks a deep affordability crisis for locals. The boom in vacation homes and short-term rentals has driven up property values and squeezed full-time residents. Service industry wages haven’t budged, and housing competition is fierce. Many workers live in outlying towns and commute long distances through snow-packed roads.
Tourists flood in year-round for skiing, boating, and pristine mountain views. They stay in luxury cabins and enjoy lakeside brunches without seeing who makes it all happen. The region remains a bucket-list destination while its workforce struggles to stay afloat. For outsiders, it’s playtime; for insiders, it’s survival mode.
16. Martha’s Vineyard, Massachusetts
This island retreat is famed for its quaint charm and celebrity sightings—but living here year-round is no vacation. The cost of housing has skyrocketed as summer residents and investors scoop up properties. Local workers often rely on seasonal income and subsidized housing, if they can find it. Many families have been priced out or forced into overcrowded conditions.
Tourists arrive by ferry to enjoy seafood shacks, coastal views, and lighthouses. They take in the Vineyard’s idyllic appeal with no clue about its housing shortage. The disparity between locals and seasonal visitors widens every summer. For vacationers, it’s an escape; for workers, it’s a daily balancing act.
17. Park City, Utah
Park City is a winter wonderland for vacationers but a tough place to live for the people who make it run. The ski resort town has seen an explosion in luxury real estate and vacation rentals. With limited housing and rising costs, many locals share apartments or commute from distant areas. The job market is seasonal and dominated by low-wage hospitality roles.
Despite these struggles, tourists pour in for Sundance, powdery slopes, and mountain charm. Downtown bustles with upscale restaurants and chic boutiques. Visitors rarely notice the workers behind the scenes living paycheck to paycheck. The slopes are steep—and so is the cost of living.
18. Breckenridge, Colorado
Breckenridge is beloved by tourists for its ski slopes and historic charm, but it’s a tough place for locals to thrive. Rising real estate prices have turned this mountain town into a haven for second-home buyers. Affordable housing is scarce, forcing workers to seek shelter outside town limits. The cost of living continues to climb while wages remain stuck.
Visitors hit the trails, spend freely, and sip cocoa in cozy lodges. They soak up the ambiance of a mountain retreat unaware of the housing crunch. Breckenridge’s beauty hides the economic strain felt by those who live there year-round. It’s a vacation dream—unless you’re trying to live it daily.
19. Bar Harbor, Maine
Bar Harbor sits on the edge of Acadia National Park and draws millions each summer—but it’s not easy for locals. As tourism surges, housing has shifted toward short-term rentals, leaving fewer options for year-round residents. Jobs in the area rely heavily on seasonal tourism and low wages. Many locals struggle to find stable employment and housing outside peak months.
Tourists enjoy lobster rolls, scenic hikes, and whale watching tours. They see a peaceful seaside town full of charm and natural wonder. But the people who make it run often live in aging rentals or temporary housing. Bar Harbor’s allure is strong—for everyone but those barely hanging on.
20. Savannah, Georgia
Savannah’s antebellum beauty and artistic flair attract waves of visitors, but its locals face an uphill battle. Historic neighborhoods are being converted into short-term rentals and boutique hotels. Affordable housing is shrinking, and wages in tourism-related jobs don’t stretch far. Longtime residents feel pushed out by rising property values and gentrification.
Meanwhile, tourists relish the city’s ghost tours, moss-draped oaks, and riverfront dining. They wander through town soaking up Southern charm without noticing the housing disparities. The city’s cultural richness is both its draw and its burden. For visitors, it’s enchanting; for residents, increasingly elusive.
21. Galveston, Texas
Galveston blends Gulf Coast relaxation with Victorian-era architecture—but its locals face growing housing challenges. Real estate geared toward beachgoers and vacation homes has squeezed out affordable options. Many workers commute from inland towns or double up with family. Tourism provides jobs, but not enough income to live on the island itself.
Visitors lounge on beaches, ride carnival-style piers, and enjoy seafood galore. They might marvel at the island’s history without seeing its economic underbelly. Galveston thrives on its seaside image while locals wrestle with rising costs. Vacationers unwind; islanders just try to keep up.
22. Palm Springs, California
Palm Springs is a desert oasis for weekenders, but a mirage of affordability for its year-round residents. Home prices have soared due to retiree demand and luxury vacationers. Service workers and young residents often find themselves priced out and living in surrounding desert communities. The cost of living clashes with low wages tied to hospitality and retail.
Tourists soak up mid-century glamour, poolside cocktails, and Coachella vibes. They escape the hustle of urban life while the locals hustle just to pay rent. Palm Springs glows in travel magazines but dims behind closed doors. The sunshine is real—so is the struggle to stay.
This post 22 American Cities Where Locals Can’t Afford to Live—but Tourists Thrive was first published on American Charm.
