Bankrate Finds More Than 75% of Homes Unaffordable to Typical Household
(Photo credit: Michael Tucker)
A new report from Bankrate, New York, finds that typical households earning the median income are priced out of more than 75% of homes on the U.S. market.
The typical U.S. household earns almost $80,000 per year, according to 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 such as 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 hope and a measure of affordability in 2025, with typical homebuyers in Pittsburgh and St. Louis still able to afford one in two listings.
In addition to Miami and Los Angeles, metros where affordable homes are hardest to find include San Diego, New Orleans and Boston, Bankrate reported. Metros where affordable homes are easier to find (in addition to Pittsburgh and St. Louis) include Baltimore, Detroit and Birmingham, Ala.
“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,” Bankrate Data Analyst Alex Gailey noted. “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.”
“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 added. “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.”
