Homes in These 10 Small Towns Have Prices of Over $400,000, Nearly as Expensive as Major Coastal Cities

US-ECONOMY-INDICATOR-REAL-ESTATE — (Photo : (Photo by STEFANI REYNOLDS/AFP via Getty Images)) A sign is displayed in front of a new housing development in Burke, Virginia, on April 26, 2022. - Sales of new homes fell in the US last month, government data said on April 26, as high prices continued to crimp demand. Sales dropped to an annualized rate of 763,000, seasonally adjusted, less than analysts anticipated and 8.6 percent below the rate in February, which was revised sharply upwards, the Commerce Department reported.

Home values have been soaring in the United States, especially in major metropolitan areas and coastal towns. However, a recent study found that housing costs have also risen in small towns.

A recent study from LendingTree analyzed median home values in towns defined by the US Census Bureau as having a population between 10,000 and 50,000. The researchers then compared each town with a larger metropolitan area.

The study found that the home values of micropolitan areas were comparable to those of larger metropolitan areas.

Towns Where Home Values Were the Most Expensive

Of all micropolitan areas with populations between 10,000 and 50,000, Vineyard Haven, Massachusetts, had the most expensive homes. The median home value in the area was $998,100. In comparison, the median home value in San Francisco is $1.073 million.

That said, homes in Vineyard Haven are less affordable than those in the big city. The median home price was roughly 11 times the local median income of $93,225. The study noted that the median home price was nine times the local median income in San Francisco.

Vineyard Haven is home to Martha's Vineyard and the Elizabeth Islands.

Following Vineyard Haven on the list was Jackson, Wyoming, where the median home value was $847,300, and the median household income was $102,435. In comparison, homes in Los Angeles had a median price of $772,000 with a local income of $89,105.

The high home prices in these small towns can be attributed to their limited supply. This means buyers would have to compete for a relatively small number of homes in the area, which could drive up prices.