Newport Beach Most Expensive Real Estate Market in U.S.

Newport Beach was the most expensive real estate market in the U.S. for the second year in a row, according to a home listing report released this week by Coldwell Banker.

The average price of a four-bedroom, two-bathroom house in Newport is more than $2.5 million, according to the report. Last year, it was $1.8 million. By contrast, the least expensive real estate market in the U.S. is Niagara Falls, NY. A comparable home there costs on average $61,000.

"The supply of homes in Newport Beach is relatively small," said Greg Bingham, manager of a local . "Everyone wants to live by the ocean."

And while the beach is a major draw, the city itself, along with local schools, has a lot to do with the high demand to live in Newport, Bingham said.

“I think Newport Beach as a city has done a very good job of taking care of residents,” he said.

The report's findings are based on properties listed on coldwellbanker.com between September and March. More than 2,300 markets are represented. Six of the 10 most expensive markets are in California. The average price of a four-bedroom, two-bathroom house for the entire U.S. was about $293,000.