As housing prices soar across the country, many suburbs once considered affordable alternatives to major cities have become just as expensive—if not more so—than the urban areas they surround. Homebuyers are finding themselves priced out of these locations, prompting a mass exodus to more affordable regions. From skyrocketing property taxes to inflated home prices driven by demand, these suburbs are no longer the bargains they once were. Here are 10 of the most overpriced suburbs in America and the places where people are moving instead.
1. Palo Alto, California
Palo Alto, nestled in the heart of Silicon Valley, has some of the highest home prices in the country. The median home price in this tech hub easily surpasses $3 million, making it nearly impossible for anyone outside of the tech elite to buy property. The cost of living, including property taxes and everyday expenses, is also prohibitively high. Despite its excellent schools and proximity to major tech employers, many middle-class families and retirees are looking elsewhere.
Where People Are Moving: Many are leaving Palo Alto for Austin, Texas, where the tech scene is booming, and home prices are significantly lower. Austin offers a vibrant cultural scene, no state income tax, and a lower overall cost of living. Additionally, companies like Tesla and Oracle have expanded operations in the city, attracting former Silicon Valley residents. Other popular alternatives include Boise, Idaho, and Raleigh, North Carolina.
2. Scarsdale, New York
Scarsdale, a wealthy suburb of New York City, is known for its prestigious schools and upscale living. However, with home prices averaging well over $1 million and some of the highest property taxes in the country, it has become increasingly unaffordable. Many young professionals and families are struggling to justify the cost of living in exchange for a short commute to Manhattan. As remote work becomes more common, fewer people see the need to pay a premium for proximity to the city.
Where People Are Moving: Many former Scarsdale residents are relocating to cities like Charlotte, North Carolina, where they can enjoy a lower cost of living while still having access to high-paying jobs. Other popular destinations include parts of Florida, such as West Palm Beach and Naples, where they can avoid New York’s high taxes.
3. Newton, Massachusetts
Just outside of Boston, Newton is a desirable suburb with excellent schools and a charming, historic feel. However, the median home price is now well over $1.5 million, making it unaffordable for many middle-class families. High property taxes and the increasing cost of living have made homeownership here more of a burden than a benefit. With remote work offering more flexibility, many residents are seeking more affordable options outside Massachusetts.
Where People Are Moving: Southern New Hampshire, particularly cities like Nashua and Manchester, has become a top choice for Newton transplants. The Granite State offers lower home prices, no state income tax, and a reasonable commute for those who still need to access Boston occasionally. Other families are heading south to states like North Carolina and Tennessee for more affordable housing options.
4. Highland Park, Illinois
Located north of Chicago, Highland Park has long been known for its stunning lakefront homes and strong community feel. However, with the Illinois real estate market becoming increasingly expensive and property taxes soaring, many homeowners are reconsidering staying put. The median home price in Highland Park is now well over $800,000, and the high cost of living is driving people elsewhere. The overall tax burden in Illinois is also among the highest in the nation.
Where People Are Moving: Many Highland Park residents are heading to Texas, particularly Dallas and its surrounding suburbs like Frisco and Plano. Texas offers lower property taxes, a booming economy, and significantly more affordable housing options. Others are relocating to Indiana, where suburban home prices are much lower, and the tax burden is lighter.
5. Bellevue, Washington
Bellevue, just outside of Seattle, has transformed into one of the most expensive suburbs in the country. The tech boom in the region has driven home prices beyond the reach of many middle-class buyers, with median home values exceeding $1.5 million. The rising cost of living and the area’s growing population have also contributed to a competitive and overpriced market. Even with high salaries from tech jobs, many young professionals and families are looking for alternatives.
Where People Are Moving: Boise, Idaho, has become a hotspot for former Bellevue residents. With its lower cost of living, beautiful outdoor spaces, and growing job market, Boise offers a quality of life that’s hard to match at a fraction of the cost. Other popular destinations include Spokane, Washington, and Salt Lake City, Utah.
6. Greenwich, Connecticut
Greenwich has long been a symbol of affluence, with sprawling estates and a high concentration of Wall Street professionals. However, with median home prices nearing $2 million and steep property taxes, even the wealthy are feeling the squeeze. The demand for luxury homes has driven up prices, making it challenging for even high earners to justify staying in the area. Many longtime residents are cashing out and moving to states with lower taxes.
Where People Are Moving: Florida remains the top destination for former Greenwich homeowners, particularly Palm Beach and Naples. The absence of state income tax and more affordable luxury housing make Florida a prime choice for those looking to escape Connecticut’s high costs. Other wealthy transplants are heading to Texas for similar reasons.
7. Paradise Valley, Arizona
As one of the wealthiest suburbs of Phoenix, Paradise Valley has seen an astronomical rise in home prices. The influx of out-of-state buyers, particularly from California, has driven prices past $2 million for many properties. While Arizona’s lack of income tax is a draw, the increasing cost of housing has made it difficult for even high-income earners to buy homes. As a result, many long-term residents are looking elsewhere for more affordable luxury living.
Where People Are Moving: Many former Paradise Valley homeowners are moving to smaller Arizona towns like Prescott or Flagstaff, where home prices are lower, and the climate is more temperate. Others are heading to states like Nevada or Tennessee, where luxury homes are more affordable.
8. San Mateo, California
San Mateo, located between San Francisco and Silicon Valley, has become one of the most overpriced suburbs in California. The median home price is well over $1.5 million, making it nearly impossible for most middle-class families to buy a home. The cost of living, from groceries to transportation, is also among the highest in the country. Many residents are looking for alternatives where their money can stretch further.
Where People Are Moving: Sacramento and Reno, Nevada, have become popular alternatives for those fleeing San Mateo’s high costs. Both cities offer significantly lower housing prices, while Reno also has the benefit of no state income tax.
9. Orange County, California
Orange County’s beachside appeal has made it a hotspot for homebuyers, but the market has become unsustainable. With median home prices exceeding $1 million in many areas, families are struggling to afford even modest homes. The cost of living is exceptionally high, making it difficult to save for a down payment. Many are now looking for alternatives that provide similar amenities without the extreme price tag.
Where People Are Moving: Cities in Texas, such as Austin and San Antonio, are top choices for former Orange County residents. Additionally, Idaho and Tennessee are seeing a surge in ex-Californians seeking more affordable living.
10. Bethesda, Maryland
Bethesda, a wealthy suburb of Washington, D.C., is known for its top-tier schools and proximity to government jobs. However, the high home prices, property taxes, and cost of living have made it an increasingly difficult place to afford. Many families are feeling squeezed by the rising expenses, despite the high salaries in the area. As a result, many are seeking more budget-friendly options.
Where People Are Moving: Richmond, Virginia, and Raleigh, North Carolina, have become popular alternatives. These cities offer lower home prices, strong job markets, and a high quality of life.
