In America’s largest cities, homeownership is turning into a luxury item that many cannot afford. A new Bankrate analysis of real estate and income data shows that typical households earning the median income are priced out of more than 75% of homes on the U.S. market.
- For more information, click here: https://www.bankrate.com/mortgages/american-dream-of-homeownership-turning-into-luxury/
The typical U.S. household earns almost $80,000 per year, according to the Claritas estimates of U.S. Census Bureau data. Yet, potential homebuyers would need to earn $113,000 per year to afford a median-priced home, as of July 2025. To show how tough the market is for would-be buyers, Bankrate looked at a key statistic: the share of available homes in a given real estate market that are affordable to the typical household.
In most major metros, only a small fraction of homes for sale are within reach for the median household income. Bankrate’s analysis found that in markets like Miami and Los Angeles, fewer than 1 in 200 listings are affordable to the typical household.
On the other hand, several large markets in the Rust Belt and South still offer a glimmer of hope and a measure of affordability in 2025, with typical homebuyers in Pittsburgh and St. Louis can still afford 1 in 2 listings.
Metros where affordable homes are hardest and easiest to find:
| Metro | Median 2025 Household Income | Maximum Target Home Price* | Share of Affordable Homes on the Market (as of July 2025) | |
Metros Where Affordable Homes are Hardest to Find | Miami, FL | $74,274 | $72,000 | 0.4% |
| Los Angeles, CA | $91,380 | $276,000 | 0.5% | |
| San Diego, CA | $103,066 | $347,000 | 1.6% | |
| New Orleans, LA | $61,991 | $92,000 | 2.7% | |
| Boston, MA | $109,295 | $349,000 | 4.8% | |
Metros Where Affordable Homes are Easiest to Find | Pittsburgh, PA | $72,935 | $275,000 | 54.6% |
| St. Louis, MO | $79,869 | $295,000 | 49.7% | |
| Baltimore, MD | $95,068 | $368,000 | 43.4% | |
| Detroit, MI | $72,493 | $246,000 | 42.1% | |
| Birmingham, AL | $71,644 | $272,000 | 41.4% |
*based on all-in homeownership costs
“For many families, the challenge isn’t just high home prices and elevated mortgage rates. It’s that housing shortages across the country have left them with far fewer homes they can afford,” said Alex Gailey, Data Analyst at Bankrate. “When only a sliver of the market is affordable to the typical household, homeownership starts to feel less like a milestone and more like a luxury. It’s no surprise that one in six aspiring homeowners have walked away in the last five years.”
Further, the income needed to afford a median-priced home exceeds what the typical household earns in most major metro areas. In metros across the Northeast and along the West Coast, home prices continue to be stubbornly high, leaving many middle-income buyers with few options.
Most and least affordable metros by income:
| Metro | Median 2025 Household Income | Household Income Needed to Afford Median-Priced Home | |
Most Affordable Metros | Detroit, MI | $72,493 | $66,693 |
| Pittsburgh, PA | $72,935 | $70,120 | |
| Louisville, KY | $72,566 | $78,472 | |
| St. Louis, MO | $79,896 | $80,244 | |
| Birmingham, AL | $71,644 | $80,845 | |
Least Affordable Metros | San Francisco, CA | $133,542 | $353,517 |
| Los Angeles, CA | $91,380 | $227,315 | |
| San Diego, CA | $103,066 | $221,930 | |
| New York, NY | $94,960 | $212,479 | |
| Seattle, WA | $113,456 | $206,007 |
“Affordability looks very different depending on where you live. Some large cities still give median-income households a path to buying a home, while others have become increasingly difficult to break into,” Gailey said. “For aspiring homeowners, the best approach is to stay adaptable and know your numbers. Get preapproved, set a firm budget, broaden your search and stay open to different home types. First-time buyer programs can also help bridge the gap.”
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Tags: economy, home sales, new homes, real estate
