These Small-Town Home Values Compete With Even the Largest Cities

While small towns often provide more affordable home prices than large cities, that’s not the case everywhere. According to a recent study from online lending platform LendingTree, home prices in some of the nation’s small towns rival those in the largest U.S. metros.

Many of the nation’s tourist destinations top the list

Unsurprisingly, many of the small towns on the list are also vacation destinations and home to many seasonal properties.

Two towns in Massachusetts—Nantucket and Vineyard Haven—take the top spots among small towns with expensive homes. Nantucket leads with a median home value of $1.38 million, just above the median home value of $1.34 million in San Jose, Calif.

Close behind is Vineyard Haven at $1.10 million, nearly matching San Francisco’s $1.11 million home value. These two towns are followed by Jackson, Wyo., where the median home value is $954,600, surpassing Los Angeles’ $825,300.

What does this mean for those looking to buy in these areas?

The study also compares median home prices with median household incomes to create a value-to-income ratio for each town and metro area, with a higher ratio indicating less affordability.

Along with leading in home values, Nantucket, Vineyard Haven, and Jackson also post the highest ratios: 11.58, 10.79, and 8.95, respectively. Although annual household incomes in these areas—$119,750 in Nantucket, $102,348 in Vineyard Haven, and $106,679 in Jackson—are above the 2023 national median of $80,610, they are still not enough to keep pace with home prices hovering near or above $1 million.

Still, many small to mid-size cities offer low home prices

• Buyers Gravitate Toward Affordable, Climate-Resilient Metros: A recent study shows that buyers are looking to mid-size Midwestern cities for their more affordable prices. 
• Young Adults Are Flocking to Small Towns: Many young buyers are looking to affordable rural communities in order to become homeowners.