New 2025 housing data reveals that in 47 of the top 50 U.S. metro areas, the typical household can no longer afford a median-priced home.
By any measure, 2025 has redrawn the map of housing affordability in America. With median home prices holding above $440,000 and mortgage rates still hovering near 7%, a new national benchmark has emerged: homeownership now demands a six-figure income in most of the country’s major metros.
According to a comprehensive analysis of 2025 data from Redfin and U.S. Census estimates, the median household income needed to buy a median-priced U.S. home is now approximately $112,000 - a figure that exceeds the actual median income by more than 30%.
For decades, the standard guidance was clear: spend no more than 30% of your gross income on housing. But in 2025, that benchmark is near impossible for most recent homeowners. A typical American household now spends over 44% of its income to cover the mortgage on a median-priced home, according to Redfin’s August 2025 housing affordability report.
Out of the 50 largest U.S. metros, only Pittsburgh, St. Louis, and Detroit offer homes that a median-income household can afford under traditional lending standards. Pittsburgh, the most affordable, has a median home price of $252,000 and requires an income of just over $70,000—a rare alignment with local earnings.
But elsewhere, sticker shock is the norm. Consider this:
Los Angeles: Median home price $1.15M → $271K income needed (3× the median income)
San Jose: $1.37M price tag → $323K income required (more than double the city’s $157K median income)
Miami: $510K median home → $126K income needed (70% higher than local median)
Phoenix: $505K → $121K income needed
Dallas: $440K → $119K income needed
Even in mid-market cities like Atlanta, Houston, and Orlando, six-figure incomes are now required.
Below are all 50 cities in the study, ranked by estimated household income needed to afford a median-priced home in 2025 (assuming a 30-year mortgage, 7% rate, 20% down, and housing costs capped at 30% of income):
San Jose, CA: $323,153
Los Angeles, CA: $271,573
San Francisco, CA: $235,284
San Diego, CA: $234,712
Boston, MA: $211,288
New York, NY: $195,951
Seattle, WA: $191,093
Providence, RI: $155,460
Sacramento, CA: $151,709
Washington, DC: $148,570
Portland, OR: $148,475
Riverside, CA: $145,961
Denver, CO: $143,258
Austin, TX: $137,160
Nashville, TN: $130,722
Miami, FL: $126,153
Hartford, CT: $123,866
Phoenix, AZ: $120,713
Dallas, TX: $119,283
Las Vegas, NV: $115,249
Grand Rapids, MI: $113,588
Richmond, VA: $113,525
Minneapolis, MN: $113,332
Raleigh, NC: $113,092
Milwaukee, WI: $110,692
Charlotte, NC: $110,691
Chicago, IL: $109,924
Columbus, OH: $107,107
Orlando, FL: $107,020
Atlanta, GA: $105,914
Virginia Beach, VA: $105,385
Tampa, FL: $104,265
Baltimore, MD: $103,682
Philadelphia, PA: $103,358
Kansas City, MO: $103,257
Jacksonville, FL: $102,766
Houston, TX: $101,696
Cincinnati, OH: $96,439
Tucson, AZ: $94,072
San Antonio, TX: $94,072
Indianapolis, IN: $86,416
Memphis, TN: $84,782
Oklahoma City, OK: $84,396
Louisville, KY: $83,330
Buffalo, NY: $80,990
St. Louis, MO: $79,602
Detroit, MI: $77,388
Birmingham, AL: $76,551
Cleveland, OH: $76,077
Pittsburgh, PA: $70,700
Only three cities - Pittsburgh, St. Louis, and Detroit - fall at or below their respective local median incomes, making them relatively affordable.
For real estate professionals, these numbers are conversation starters. Guiding buyers through the affordability landscape means grounding expectations, finding creative financing paths, and possibly expanding location searches.
As affordability gaps widen across cities, real estate professionals should focus on identifying attainable markets for buyers, advising sellers on evolving demand dynamics, and staying current on mortgage trends and assistance programs.
In 2025, purchasing a home requires careful financial planning and clear guidance. Agents who understand the data and local context are better positioned to help clients navigate this challenging landscape.