The gap between income and housing costs continues to widen across the U.S., leaving homeownership increasingly out of reach for many Americans. According to a new report from Realtor.com, nearly all of the nation’s largest metro areas now require households to spend more than 30% of their income to afford a median-priced home a threshold long used by financial experts to define “affordable” housing.
Out of the 50 largest metros in the U.S., only three Pittsburgh, Detroit, and St. Louis still meet the affordability standard for median-income households using a 20% down payment and May’s average mortgage rate of 6.82%. Everywhere else, the cost of homeownership stretches budgets thin or breaks them entirely.
The Last Few Affordable Markets
In Pittsburgh, where the median listing price is $249,900, buyers with the area’s median income of $72,935 spend just 27.4% of their income on housing, including taxes and insurance keeping them within the traditional affordability range. Detroit and St. Louis follow closely at 29.8% and 30%, respectively.
“Markets like Pittsburgh and Detroit are still providing a path to homeownership for average earners, but even there, rising demand is putting pressure on prices,” said Danielle Hale, Chief Economist at Realtor.com.
Homeownership Out of Reach in Most Metros
Nationwide, a typical household would now need to allocate 44.6% of its income to afford a median-priced home, which was $440,000 in May. In high-cost metros like Los Angeles, New York, and Boston, the numbers are even more staggering.
In the Los Angeles-Long Beach-Anaheim region, a household earning the area’s median income of $91,380 would need to spend over 104% of that income just to afford a median-priced home an impossible proposition without dual incomes, substantial savings, or outside financial help.
Other major markets also stretch the limits of affordability:
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- New York–Newark–Jersey City: 66.9% of income required
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- Boston–Cambridge–Newton: 64.3%
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- San Diego–Chula Vista–Carlsbad: 77.1%
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- San Jose–Sunnyvale–Santa Clara: 72.4%
These affordability ratios highlight just how far out of reach homeownership has become for average earners, particularly in coastal and high-demand metro areas.
A National Trend Toward Unsustainable Costs
Despite slight improvements in inventory and moderate income growth, home prices have risen faster than wages. That disconnect is fueling a deeper affordability crisis and making it harder for first-time buyers to break into the market.
Realtor.com’s report underscores that affordability challenges are not simply due to high mortgage rates, which remain near 7%. The underlying issue is that housing supply remains constrained, particularly for homes priced at or below the median.
“While earnings have ticked up, homebuying costs have surged even more. Without bold steps to increase inventory or lower interest rates, affordability will continue to deteriorate,” Hale noted.
Supply Imbalance Widens the Gap
A separate report from the National Association of Realtors and Realtor.com indicates that only 30% of the 100 largest metros are approaching a balanced level of affordable listings for local income brackets. Meanwhile, 44% are still misaligned, and 26% have seen their housing affordability gap worsen.
What could help? Experts point to the urgent need for more housing construction particularly starter homes and entry-level price points. Increasing supply would help ease competition, moderate price growth, and make it more feasible for average households to own a home.
The American Dream, on Hold?
Even as homeownership becomes more elusive, the dream remains alive. According to a January Realtor.com survey, 75% of U.S. adults still view owning a home as part of the American Dream. Yet with the national homeownership rate at 65.1% as of Q1 2025, many are still on the sidelines, waiting for a market that meets their means.
Whether through policy changes, lower interest rates, or meaningful increases in housing supply, one thing is clear: affordability will remain a top issue shaping the housing market in 2025 and beyond. For direct financing consultations or mortgage options for you visit 
