The U.S. housing market continues to see rising costs, and mortgage debt is following suit. New data reveals that 67 cities now have average mortgages exceeding $1 million – a significant jump from 47 in 2024 and just 23 the year before. California dominates this landscape, accounting for nearly half of the top 50 cities with the highest mortgage balances. Florida also features prominently, though with fewer overall locations.
Why This Matters: This trend reflects the widening gap in wealth and affordability. While these high-mortgage cities often represent exclusive communities, the broader implications include increasing financial strain on homeowners and a growing divide between those who can access wealth through real estate and those who cannot. The surge in $1 million+ mortgages suggests a market increasingly driven by high-income buyers and limited access for middle-class families.
Here’s a breakdown of the top 50 cities, ranked by average mortgage balance:
- Golden Oak, Florida: $3,627,594
- Gulf Stream, Florida: $3,206,007
- Golden Beach, Florida: $2,969,951
- Captiva, Florida: $2,620,156
- Atlantis, Florida: $2,585,199
- Montecito, California: $2,487,787
- Hidden Hills, California: $2,149,578
- Atherton, California: $2,137,851
- Hunts Point, Washington: $2,016,164
- Sagaponack, New York: $1,977,857
- Bal Harbour, Florida: $1,885,057
- Rollingwood, Texas: $1,820,562
- Palm Beach, Florida: $1,805,838
- Pacific Palisades, California: $1,716,991
- Sands Point, New York: $1,714,070
- Clyde Hill, Washington: $1,703,147
- Mountain Village, Colorado: $1,658,100
- Ross, California: $1,632,675
- Los Altos Hills, California: $1,591,382
- Cherry Hills Village, Colorado: $1,581,734
- Newport Coast, California: $1,546,637
- Diablo, California: $1,531,787
- Corona Del Mar, California: $1,494,513
- Monte Sereno, California: $1,439,785
- Malibu, California: $1,432,504
- Old Westbury, New York: $1,427,803
- Wainscott, New York: $1,405,440
- Rancho Santa Fe, California: $1,394,884
- Sullivans Island, South Carolina: $1,375,108
- Los Altos, California: $1,340,276
- Tiburon, California: $1,325,656
- Upperville, Virginia: $1,310,153
- Yarrow Point, Washington: $1,309,353
- Rolling Hills, California: $1,284,442
- Kentfield, California: $1,282,110
- Kings Point, New York: $1,264,207
- Glenbrook, Nevada: $1,257,752
- Portola Valley, California: $1,256,154
- Manhattan Beach, California: $1,233,851
- Vernon, New Jersey: $1,223,760
- Beaux Arts, Washington: $1,222,458
- Paradise Valley, Arizona: $1,214,482
- Belvedere Tiburon, California: $1,202,937
- Calabasas Hills, California: $1,184,599
- Newport Beach, California: $1,160,571
- Water Mill, New York: $1,158,228
- Old Greenwich, Connecticut: $1,155,137
- Stinson Beach, California: $1,150,690
- La Cañada Flintridge, California: $1,146,044
- Sea Ranch Lakes, Florida: $1,123,867
Looking Ahead: The concentration of high-mortgage debt in a handful of exclusive cities underscores the growing financial divide in the U.S. housing market. As affordability declines, the gap between homeowners and potential buyers will likely widen, exacerbating existing wealth disparities
