U.S. Cities Where Homebuyers Are Paying more in 2026
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Home Prices Are Falling, but Buyers Are Still Paying More in These Cities
San Diego experienced the biggest jump in housing costs over the past year, according to an August 2026 report. Despite a cooldown of the housing market in the US, a new study by Everest Mortgages reveals that buyers in certain cities are still seeing their monthly costs climb.
- San Diego’s monthly housing payments rose the most, up 14.9% in one year.
- With a 7% year-over-year increase, homes in Buffalo, New York, are gaining value the fastest in the country.
- Cleveland has the highest property tax rate in the top ten at 1.80%.
The study examined home prices, property tax rates, and mortgage interest rates across major U.S. cities. It estimated monthly mortgage payments based on a 10% down payment and a 20-year loan term, then added monthly property taxes to calculate total monthly housing costs. Cities were ranked by the year-over-year percentage change in total payments, showing where buyers are paying more despite a cooling market.
Here are the 10 cities where homebuyers are paying more for housing:
City | House Price 2025 | House Price 2026 | House Price YoY Change | Property Tax Rate (%) | Interest Rate | Monthly Payment YOY Change (%) |
San Diego | 895,382 | 950,000 | 6.1% | 0.73 | 7.25% | 14.88 |
Detroit | 197,740 | 210,000 | 6.2% | 1.52 | 6.63% | 6.24 |
Buffalo | 219,626 | 235,000 | 7.0% | 1.76 | 7.12% | 6.15 |
Milwaukee | 279,621 | 295,000 | 5.5% | 1.68 | 6.63% | 5.54 |
Cleveland | 194,313 | 205,000 | 5.5% | 1.80 | 6.63% | 5.52 |
Boston | 715,649 | 750,000 | 4.8% | 0.72 | 6.17% | 5.42 |
Cincinnati | 257,143 | 270,000 | 5.0% | 1.44 | 6.29% | 4.7 |
Chicago | 336,538 | 350,000 | 4.0% | 1.75 | 6.16% | 3.95 |
Raleigh | 404,624 | 420,000 | 3.8% | 0.75 | 6.21% | 3.81 |
Memphis | 206,731 | 215,000 | 4.0% | 0.89 | 6.59% | 3.71 |
You can access the complete research findings here.
1. San Diego, California
- House Price 2025: $895K
- House Price 2026: $950K
- House Price YoY Change: 6.1%
- Property Tax Rate: 0.73%
- Interest Rate: 7.25%
- Monthly Payment YOY Change: 14.88%
San Diego’s monthly housing payments jumped 14.9% over the past year, the biggest increase in the top ten. The average home price went from $895K to $950K, a 6.1% climb, and the 0.73% property tax rate only adds to the burden. Buyers here are now facing significantly higher monthly costs, even as home prices in other cities start to level off.
2. Detroit, Michigan
Detroit takes second place with a 6.2% rise in total monthly payments, matching the exact increase in home prices. The 1.52% property tax rate means buyers are also paying more in taxes, pushing their overall costs higher. Despite the upward trend, Detroit’s average home price of $210K keeps it on the more affordable end compared with other cities on this list.
3. Buffalo, New York
Buffalo saw a 7.0% jump in home prices, the highest in the top ten, while monthly payments went up 6.2%. The 1.76% property tax rate is among the highest in the ranking, which helps explain why buyers are feeling the pressure. Even as the national market cools, Buffalo’s housing costs keep getting more expensive.
4. Milwaukee, Wisconsin
Milwaukee’s monthly payments rose 5.5%, exactly in line with its year-over-year price growth. The 1.68% property tax rate and 6.63% interest rate are both working against buyers, pushing their monthly obligations higher. With average home prices sitting at $295K, Milwaukee homeowners are watching their expenses climb steadily.
5. Cleveland, Ohio
Cleveland reports a 5.5% increase in monthly payments, driven by a similar rise in home prices from $194K to $205K. The city’s 1.80% property tax rate is highest in the ranking, meaning buyers are getting hit from both sides: higher mortgage payments and heftier tax bills. Cleveland remains one of the most budget-friendly cities overall, but the direction of costs is unmistakable.
A housing expert from Everest Mortgages commented on the study:
“Most buyers are trained to look at the purchase price first. That is a mistake. A house that costs $50,000 more might actually have a lower monthly payment if the interest rate is lower or the property taxes are lower. The real cost of homeownership is what you pay every month, not what you pay at closing. And in cities like San Diego, that monthly number is going up faster than people expect.”
John Everest
About Author
John Everest is a well-regarded mortgage and financial services adviser based in Brighton & Hove, UK. As Director of Everest Mortgage Services Ltd, John uses his industry expertise to empower clients to make sound financial decisions with confidence.
Experience Snapshot:
– Director, Everest Mortgage Services Ltd (company no. 10145887)
– FCA-registered firm (REF: 786425)
– Whole-of-market mortgage adviser with a focus on client-centric service
– Contributor to public finance platforms, offering commentary on mortgage regulation and consumer protection
Over 21 years in the banking industry working with banking operations in all aspects of banking.
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