Most Expensive Cities for Family Homes

Most Expensive Cities for Family Homes is a multi-part series that looks at the most expensive and least affordable cities for family homes in America. Be sure to check out Most Affordable Cities for Family Homes.
In a previous post, we took a look at the Most Affordable Cities for Family Homes, using data provided by Coldwell Banker's just released Home Listing Report (HLR). The report provides an overview of average listing prices for four-bedroom, two-bathroom homes in more than 2,300 North American markets.

Jim Gillespie, chief executive officer, Coldwell Banker Real Estate LLC explains the motive for the company's project as such, "This year's home listing report is by far the most in-depth local market source of data that Coldwell Banker has ever released. We've included nearly ten times more markets than ever before, which gives us unmatched real estate insight into thousands of North American cities... We know that home buying remains a deeply personal lifestyle decision, and we believe that reports like this, along with trusted real estate agents, will help today's buyers make smart decisions."

The report uses the average listing price for the period between September 2010 and March 2011 to allow for a number of observations about consumer purchasing patterns and relative market value. Since we already took a grounded look at the best bargains in American real estate for the "aspirational" home type, I thought it might be fun to go another way. I now present the most lavishly expensive locales for the venerated four-bedroom, two-bathroom single-family home.

Accompanying images, courtesy of Coldwell Banker, reflect what you might expect to get for the corresponding price point.

Read on for our list of Most Expensive House Locales for Family Homes:

10. Cupertino, CA - $1,140,656

This relatively small city of under 60,000 residents has a lot going for it. Forbes has ranked it as one of the most educated small towns, and it's no wonder given that Cupertino's biggest employer is no less a conglomerate than Apple Inc.

The home pictured above reflects what you might reasonably purchase for your average $1.1 million and change, but keep in mind that average means that 50 percent of the town's real estate is at a much higher price point. However, the cost may well be worth it in order to rub elbows with Apple CEO Steve Jobs.

9. Mercer Island, WA - $1,143,521

This small island is located within the Seattle Metropolitan area, and with a population of less then 23,000, it is fair to label this an exclusive community. The island is named for the Mercer family, who first settled in the area in 1870.

The beautiful home depicted above represents an average dwelling that could be purchased in one of the 100 richest zip codes in the United States.

8. Greenwich, CT - $1,154,293

The houses may not be cheap, but they are large and lovely. Greenwich is renowned as a haven for hedge funds and other financial service companies, and is just a 40-minute train ride from Grand Central Station in downtown Manhattan.

The town of about 65,000 residents includes enough movers and shakers to warrant first place on Money Magazine's 2006 list of towns with the biggest earners.

7. Weston, MA - $1,228,100

The prices are getting higher as we work are way through the list, but so are the homes. This small suburb of Boston has just over 11,000 inhabitants, but is also the wealthiest and has the highest per capita income in Massachusetts.

Another fun fact? Weston was a dry town until September 2008, but only wine is legally available. So we know the secret to holding onto the family riches - sobriety.

6. Los Gatos, CA - $1,261,176

This is California's second appearance on the list, but certainly not the last. This more modest looking residence can be yours for the price of a little over $1.25 million, but as we know, living near the San Francisco Bay Area certainly isn't cheap.

Los Gatos has a population just under 30,000 and is known for its upscale, pedestrian-friendly downtown area.

5. Saratoga, CA - $1,281,889

Given that Saratoga is located on the Western edge of Silicon Valley, it is no surprise to find it on a list of the most expensive places to settle. In 2008, it placed fourth on CNN Money's rundown of the 25 top-earning towns.

Known for millionaires and wineries (in that order), the home above is a prime example of the type of single-family home that can be purchased at this price point.

4. Ranchos Palos Verdes, CA - $1,312,538

The Golden State keeps chugging along with expensive single-family home destinations. The house above may not look like much for the price, but you're paying for location and view. The well-to-do suburb of Los Angeles offers prime vistas of the Pacific Ocean and access to the infamous landslide at Portuguese Bend.

Nearly 42,000 residents make their home in Ranchos Palos Verde, which means "green pole farm" in Spanish. Clearly the moniker sounds a lot more exotic in its native tongue.

3. Stone Harbor, NJ - $1,344,908

As we approach the $1.5 million mark, it appears that outdoor living space increases in proportion to price, as exhibited in the inviting home above. Stone Harbor was founded in the late 19th century as a beach resort along the West Jersey and Seashore Railroad lines and remains a prominent resort community today.

The hamlet has a year-round residency of less than 2,000, but those inhabitants have some vast personal wealth. In 2006, Forbes magazine ranked the town 47th on its list of Most Expensive Zip Codes in the nation.

2. Pacific Palisades, CA - $1,606,992

Pacific Palisades is not its own city, but rather a district located within the city of Los Angeles. It takes the #2 spot on Coldwell Banker's list of the most expensive spots for family homes because its 27,000 inhabitants include such Hollywood heavyweights as J.J. Abrams, Ben Affleck and Jennifer Garner and Nicole Kidman, among others.

For a glimpse of some of the rich and famous residents, line up along the legendary Sunset Boulevard every Independence Day for the annual 4th of July parade.

1. Newport Beach, CA - $2,537,126

And the #1 most expensive spot for family homes? Surprise! It's a city in California! In fact the average price for a four-bedroom, two-bath home has jumped nearly $1 million between second and first place - with good reason. In February 2010, Portfolio.com ranked Newport Beach as the richest city in the United States.

With a population of just over 85,000, the city counts billionaire real estate investor George Argyros as one of its wealthiest citizens. Beaches, surfing, neighbors like Gwen Stefani and lavish homes like the one above render Newport Beach a huge draw for power players.

If you independently wealthy, which one of these cities would you like to call home?
Most Expensive Cities for Family Homes is a multi-part series that looks at the most expensive and least affordable cities for family homes in America. Be sure to check out Most Affordable Cities for Family Homes.
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Ilyce R. Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com and The Equifax Personal Finance Blog, and is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.

Ilyce Glink

Ilyce R. Glink is an award-winning, nationally-syndicated columnist, best-selling book author and founder of Best Money Moves, an employee benefit program that helps reduce financial stress. She also owns ThinkGlink.com, where readers can find real estate and personal finance resources.

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