If you’re a city dweller, you might sometimes be tempted to give up the rat race for small-town life. Sure, some of that thinking may revolve around Norman Rockwell images of quaint main streets, family-owned shops and diners where everyone knows each other. Based on the current housing market in many major U.S. metropolises, however, you’re probably focused on the potential of buying a modestly priced home in a cost-friendly area.
But you shouldn’t assume that living in a small town always equates to affordable housing and lower expenses. Not all small towns are priced the same. There are several areas, in particular, where your mortgage wouldn’t feel out of place in some of the nation’s most expensive urban real estate markets.
GOBankingRates looked at towns with 500-15,000 housing units, according to the U.S. Census American Community Survey. Using home values, rent and cost of living data, GOBankingRates found the most expensive small towns in America.
Solana Beach, California
- Population: 13,025
- Housing Units: 5,278
- Average Rent: $4,768
- Average Home Value: $2,362,340
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $472,468
- Monthly Mortgage Payment: $13,214
- Monthly Cost of Necessities (excluding housing): $1,870
Mercer Island, Washington
- Population: 25,506
- Housing Units: 9,758
- Average Rent: $2,590
- Average Home Value: $2,218,301
- Median Property Tax Rate: 0.94%
- 20% Down Payment: $443,660
- Monthly Mortgage Payment: $12,409
- Monthly Cost of Necessities (excluding housing): $1,806
Burlingame, California
- Population: 31,142
- Housing Units: 12,418
- Average Rent: $3,090
- Average Home Value: $2,670,648
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $534,130
- Monthly Mortgage Payment: $14,939
- Monthly Cost of Necessities (excluding housing): $2,151
Los Gatos, California
- Population: 33,309
- Housing Units: 13,036
- Average Rent: $3,674
- Average Home Value: $2,642,780
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $528,556
- Monthly Mortgage Payment: $14,783
- Monthly Cost of Necessities (excluding housing): $2,132
Piedmont, California
- Population: 11,368
- Housing Units: 3,821
- Average Rent: $4,669
- Average Home Value: $2,532,842
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $506,568
- Monthly Mortgage Payment: $14,168
- Monthly Cost of Necessities (excluding housing): $2,016
Highland Beach, Florida
- Population: 4,244
- Housing Units: 2,222
- Average Rent: $6,994
- Average Home Value: $2,003,440
- Median Property Tax Rate: 0.86%
- 20% Down Payment: $400,688
- Monthly Mortgage Payment: $11,207
- Monthly Cost of Necessities (excluding housing): $1,944
Menlo Park, California
- Population: 33,677
- Housing Units: 11,725
- Average Rent: $3,898
- Average Home Value: $2,749,252
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $549,850
- Monthly Mortgage Payment: $15,379
- Monthly Cost Of Necessities (excluding housing): $2,114
Wellesley, Massachusetts
- Population: 29,365
- Housing Units: 8,668
- Average Rent: $3,931
- Average Home Value: $1,853,741
- Median Property Tax Rate: 1.20%
- 20% Down Payment: $370,748
- Monthly Mortgage Payment: $10,369
- Monthly Cost of Necessities (excluding housing): $1,922
Coronado, California
- Population: 20,627
- Housing Units: 7,147
- Average Rent: $4,796
- Average Home Value: $2,769,271
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $553,854
- Monthly Mortgage Payment: $15,491
- Monthly Cost Of Necessities (excluding housing): $1,864
Bellaire, Texas
- Population: 17,262
- Housing Units: 6,230
- Average Rent: $2,813
- Average Home Value: $1,017,909
- Median Property Tax Rate: 1.74%
- 20% Down Payment: $203,582
- Monthly Mortgage Payment: $5,694
- Monthly Cost Of Necessities (excluding housing): $1,848
Laguna Beach, California
- Population: 23,121
- Housing Units: 10,536
- Average Rent: $4,983
- Average Home Value: $2,900,190
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $580,038
- Monthly Mortgage Payment: $16,223
- Monthly Cost Of Necessities (excluding housing): $1,875
Palos Verdes Estates, California
- Population: 13,403
- Housing Units: 4,909
- Average Rent: $6,750
- Average Home Value: $2,726,313
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $545,263
- Monthly Mortgage Payment: $15,250
- Monthly Cost of Necessities (excluding housing): $2,016
Port Washington, New York
- Population: 16,807
- Housing Units: 5,738
- Average Rent: $4,617
- Average Home Value: $1,091,389
- Median Property Tax Rate: 1.73%
- 20% Down Payment: $218,278
- Monthly Mortgage Payment: $6,105
- Monthly Cost of Necessities (excluding housing): $2,396
Manhattan Beach, California
- Population: 35,585
- Housing Units: 13,422
- Average Rent: $6,344
- Average Home Value: $2,994,733
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $598,947
- Monthly Mortgage Payment: $16,752
- Monthly Cost of Necessities (excluding housing): $1,992
Great Neck, New York
- Population: 11,034
- Housing Units: 3,283
- Average Rent: $4,070
- Average Home Value: $1,386,099
- Median Property Tax Rate: 1.73%
- 20% Down Payment: $277,220
- Monthly Mortgage Payment: $7,753
- Monthly Cost Of Necessities (excluding housing): $2,387
Southlake, Texas
- Population: 30,754
- Housing Units: 9,299
- Average Rent: $5,468
- Average Home Value: $1,191,087
- Median Property Tax Rate: 1.74%
- 20% Down Payment: $238,217
- Monthly Mortgage Payment: $6,663
- Monthly Cost of Necessities (excluding housing): $1,893
Tiburon, California
- Population: 9,146
- Housing Units: 3,515
- Average Rent: $5,445
- Average Home Value: $3,308,347
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $661,669
- Monthly Mortgage Payment: $18,506
- Monthly Cost of Necessities (excluding housing): $2,040
Saratoga, California
- Population: 31,194
- Housing Units: 11,039
- Average Rent: $5,657
- Average Home Value: $3,622,824
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $724,565
- Monthly Mortgage Payment: $20,265
- Monthly Cost of Necessities (excluding housing): $2,116
Larchmont, New York
- Population: 6,532
- Housing Units: 2,102
- Average Rent: $5,998
- Average Home Value: $1,576,448
- Median Property Tax Rate: 1.73%
- 20% Down Payment: $315,290
- Monthly Mortgage Payment: $8,818
- Monthly Cost of Necessities (excluding housing): $2,315
Glencoe, Illinois
- Population: 8,824
- Housing Units: 3,195
- Average Rent: $2,123
- Average Home Value: $1,261,200
- Median Property Tax Rate: 2.23%
- 20% Down Payment: $252,240
- Monthly Mortgage Payment: $7,054
- Monthly Cost of Necessities (excluding housing): $1,893
University Park, Texas
- Population: 25,029
- Housing Units: 7,528
- Average Rent: $4,261
- Average Home Value: $2,151,513
- Median Property Tax Rate: 1.74%
- 20% Down Payment: $430,303
- Monthly Mortgage Payment: $12,035
- Monthly Cost of Necessities (excluding housing): $1,851
Los Altos, California
- Population: 31,562
- Housing Units: 10,805
- Average Rent: $5,779
- Average Home Value: $4,065,191
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $813,038
- Monthly Mortgage Payment: $22,740
- Monthly Cost of Necessities (excluding housing): $2,084
Belmar, New Jersey
- Population: 5,869
- Housing Units: 2,662
- Average Rent: $2,299
- Average Home Value: $1,039,537
- Median Property Tax Rate: 2.47%
- 20% Down Payment: $207,908
- Monthly Mortgage Payment: $5,815
- Monthly Cost of Necessities (excluding housing): $1,820
Bradley Beach, New Jersey
- Population: 4,284
- Housing Units: 1,956
- Average Rent: $2,467
- Average Home Value: $1,052,582
- Median Property Tax Rate: 2.47%
- 20% Down Payment: $210,516
- Monthly Mortgage Payment: $5,888
- Monthly Cost of Necessities (excluding housing): $1,822
Key Biscayne, Florida
- Population: 14,530
- Housing Units: 4,580
- Average Rent: $7,414
- Average Home Value: $3,718,520
- Median Property Tax Rate: 0.86%
- 20% Down Payment: $743,704
- Monthly Mortgage Payment: $20,800
- Monthly Cost of Necessities (excluding housing): $2,025
Westfield, New Jersey
- Population: 30,950
- Housing Units: 10,514
- Average Rent: $2,963
- Average Home Value: $1,059,689
- Median Property Tax Rate: 2.47%
- 20% Down Payment: $211,938
- Monthly Mortgage Payment: $5,928
- Monthly Cost of Necessities (excluding housing): $2,061
Margate City, New Jersey
- Population: 5,402
- Housing Units: 2,658
- Average Rent: $3,177
- Average Home Value: $1,030,587
- Median Property Tax Rate: 2.47%
- 20% Down Payment: $206,117
- Monthly Mortgage Payment: $5,765
- Monthly Cost of Necessities (excluding housing): $1,791
Sea Bright, New Jersey
- Population: 1,532
- Housing Units: 876
- Average Rent: $2,303
- Average Home Value: $1,191,935
- Median Property Tax Rate: 2.47%
- 20% Down Payment: $238,387
- Monthly Mortgage Payment: $6,667
- Monthly Cost of Necessities (excluding housing): $1,958
Chatham, New Jersey
- Population: 9,208
- Housing Units: 2,995
- Average Rent: $3,096
- Average Home Value: $1,137,662
- Median Property Tax Rate: 2.47%
- 20% Down Payment: $227,532
- Monthly Mortgage Payment: $6,364
- Monthly Cost of Necessities (excluding housing): $2,078
Del Mar, California
- Population: 4,008
- Housing Units: 1,818
- Average Rent: $8,050
- Average Home Value: $4,078,818
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $815,764
- Monthly Mortgage Payment: $22,816
- Monthly Cost of Necessities (excluding housing): $1,922
Summit, New Jersey
- Population: 22,598
- Housing Units: 7,853
- Average Rent: $2,886
- Average Home Value: $1,197,263
- Median Property Tax Rate: 2.47%
- 20% Down Payment: $239,453
- Monthly Mortgage Payment: $6,697
- Monthly Cost of Necessities (excluding housing): $2,028
Ocean City, New Jersey
- Population: 11,211
- Housing Units: 5,353
- Average Rent: $1,846
- Average Home Value: $1,330,603
- Median Property Tax Rate: 2.47%
- 20% Down Payment: $266,121
- Monthly Mortgage Payment: $7,443
- Monthly Cost of Necessities (excluding housing): $1,865
Tenafly, New Jersey
- Population: 15,307
- Housing Units: 4,981
- Average Rent: $4,475
- Average Home Value: $1,082,836
- Median Property Tax Rate: 2.47%
- 20% Down Payment: $216,567
- Monthly Mortgage Payment: $6,057
- Monthly Cost of Necessities (excluding housing): $2,115
Paradise Valley, Arizona
- Population: 12,666
- Housing Units: 5,064
- Average Rent: $17,000
- Average Home Value: $3,222,023
- Median Property Tax Rate: 0.62%
- 20% Down Payment: $644,405
- Monthly Mortgage Payment: $18,023
- Monthly Cost of Necessities (excluding housing): $1,855
Rancho Santa Fe, California
- Population: 2,914
- Housing Units: 984
- Average Rent: $9,398
- Average Home Value: $4,140,558
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $828,112
- Monthly Mortgage Payment: $23,161
- Monthly Cost of Necessities (excluding housing): $1,939.
New Canaan, Connecticut
- Population: 7,399
- Housing Units: 2,817
- Average Rent: $5,245
- Average Home Value: $1,944,354
- Median Property Tax Rate: 2.15%
- 20% Down Payment: $388,871
- Monthly Mortgage Payment: $10,876
- Monthly Cost of Necessities (excluding housing): $2,257
Spring Lake, New Jersey
- Population: 2,814
- Housing Units: 1,285
- Average Rent: $3,242
- Average Home Value: $1,642,633
- Median Property Tax Rate: 2.47%
- 20% Down Payment: $328,527
- Monthly Mortgage Payment: $9,188
- Monthly Cost of Necessities (excluding housing): $1,845
Malibu, California
- Population: 10,915
- Housing Units: 4,442
- Average Rent: $13,251
- Average Home Value: $3,927,917
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $785,583
- Monthly Mortgage Payment: $21,972
- Monthly Cost of Necessities (excluding housing): $2,090
Greenwich, Connecticut
- Population: 13,978
- Housing Units: 5,530
- Average Rent: $5,096
- Average Home Value: $2,262,242
- Median Property Tax Rate: 2.15%
- 20% Down Payment: $452,448
- Monthly Mortgage Payment: $12,654
- Monthly Cost of Necessities (excluding housing): $2,232
Beverly Hills, California
- Population: 32,903
- Housing Units: 14,401
- Average Rent: $4,404
- Average Home Value: $5,580,482
- Median Property Tax Rate: 0.75%
- 20% Down Payment: $1,116,096
- Monthly Mortgage Payment: $31,216
- Monthly Cost of Necessities (excluding housing): $1,991
Short Hills, New Jersey
- Population: 14,500
- Housing Units: 4,561
- Average Rent: $5,693
- Average Home Value: $1,906,654
- Median Property Tax Rate: 2.47%
- 20% Down Payment: $381,331
- Monthly Mortgage Payment: $10,665
- Monthly Cost of Necessities (excluding housing): $2,158
Bal Harbour, Florida
- Population: 3,037
- Housing Units: 1,379
- Average Rent: $7,247
- Average Home Value: $5,388,357
- Median Property Tax Rate: 0.86%
- 20% Down Payment: $1,077,671
- Monthly Mortgage Payment: $30,141
- Monthly Cost of Necessities (excluding housing): $2,030
Montauk, New York
- Population: 4,272
- Housing Units: 1,571
- Average Rent: $32,111
- Average Home Value: $1,821,636
- Median Property Tax Rate: 1.73%
- 20% Down Payment: $364,327
- Monthly Mortgage Payment: $10,190
- Monthly Cost of Necessities (excluding housing): $2,061
Sag Harbor, New York
- Population: 2,480
- Housing Units: 1,095
- Average Rent: $32,643
- Average Home Value: $1,969,777
- Median Property Tax Rate: 1.73%
- 20% Down Payment: $393,955
- Monthly Mortgage Payment: $11,018
- Monthly Cost of Necessities (excluding housing): $2,103
East Hampton, New York
- Population: 1,062
- Housing Units: 588
- Average Rent: $34,808
- Average Home Value: $1,765,851
- Median Property Tax Rate: 1.73%
- 20% Down Payment: $355,170
- Monthly Mortgage Payment: $9,878
- Monthly Cost of Necessities (excluding housing): $2,112
Westhampton Beach, New York
- Population: 2,234
- Housing Units: 955
- Average Rent: $41,000
- Average Home Value: $1,748,975
- Median Property Tax Rate: 1.73%
- 20% Down Payment: $349,795
- Monthly Mortgage Payment: $9,783
- Monthly Cost of Necessities (excluding housing): $2,177
Southampton, New York
- Population: 4,380
- Housing Units: 1,660
- Average Rent: $42,333
- Average Home Value: $1,993,419
- Median Property Tax Rate: 1.73%
- 20% Down Payment: $398,684
- Monthly Mortgage Payment: $11,151
- Monthly Cost of Necessities (excluding housing): $2,088
Bridgehampton, New York
- Population: 1,447
- Housing Units: 525
- Average Rent: $46,042
- Average Home Value: $3,820,395
- Median Property Tax Rate: 1.73%
- 20% Down Payment: $764,079
- Monthly Mortgage Payment: $21,370
- Monthly Cost of Necessities (excluding housing): $2,167
Aspen, Colorado
- Population: 7,019
- Housing Units: 3,278
- Average Rent: $32,278
- Average Home Value: $8,818,525
- Median Property Tax Rate: 0.51%
- 20% Down Payment: $1,763,705
- Monthly Mortgage Payment: $49,328
- Monthly Cost of Necessities (excluding housing): $1,620
Palm Beach, Florida
- Population: 9,175
- Housing Units: 5,359
- Average Rent: $13,350
- Average Home Value: $11,187,641
- Median Property Tax Rate: 0.86%
- 20% Down Payment: $2,237,528
- Monthly Mortgage Payment: $62,580
- Monthly Cost of Necessities (excluding housing): $1,964
Joel Anderson contributed to the reporting for this article.
Methodology: To find the most expensive small towns in America, GOBankingRates looked at [1] towns with 500-15,000 housing units, according to the U.S. Census American Community Survey. Once these small towns were located, GOBankingRates used [2] Zillow’s Home Value Index to find each city’s median home value as of September 2023. All cities with a median home value below $1 million or without data were removed. GOBankingRates then found [3] each remaining small town’s median rent listing for single-family residences, as sourced from Zillow. All small towns without data were discarded. GOBankingRates analyzed the remaining small towns across the following factors: [4] annual mortgage for a 10% down payment, [5] annual mortgage for a 20% down payment, using the [6] average September 2023 home value as sourced from Zillow’s Home Value Index and the [7] average national 30 year fixed-rate mortgage rate as sourced from the Federal Reserve Economic Data. The property tax for each state was also sourced for supplemental information, as sourced from Forbes. The [8] cost of living for grocery, transportation, utilities and healthcare costs within each city was sourced from Sperlings BestPlaces, and using the [9] national average expenditure costs as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure costs for each city were calculated. The September 2023 average rent was scored and weighted at 1.00; the September 2023 average home value was scored and weighted at 1.00; the property tax rate was scored and weighted at 0.75; the 10% down payment mortgage was scored and weighted at 1, while the 20% down payment mortgage was not counted in the scoring, as that would weigh the mortgage score too heavily and the mortgage is already counted; the average monthly expenditure costs were scored and weighted at 1.00. All the scores were combined and sorted to show the most expensive small towns in America. All data was collected and is up to date as of Nov. 14, 2023.
Photo Disclaimer: Please note photos are for representational purposes only. As a result, some of the photos might not reflect the locations listed in this article.