According to a recent study conducted by Clever Real Estate, the average home can be purchased affordably in just two of the 50 major U.S. metro areas—Pittsburgh and Detroit—for the local median salary. Moreover, Iowa is the only state in the the nation with statewide affordability.
To identify regions where total housing expenses surpass 28% of the typical household’s gross income—a widely recognized benchmark for housing affordability—Clever examined the 50 largest metro areas in the U.S. along with each 50 states.
Across the country, the typical homebuyer would require a median family income of $123,226 to purchase the median-priced home in the U.S., which is $438,000, with a 20% down payment, a 6.65% mortgage rate, and typical costs for property taxes and home insurance. However, the median household income is only $77,719, which is a startling $45,507 disparity. For the average household to afford the median home, the price would have to drop by more than $160,000, to $276,247.
Affordability, Income & Prices — National
Home prices continue to be the most important determinant of housing affordability, but disparities in insurance and property tax costs are becoming more significant, resulting in large disparities in the required income between states with comparable home values.
Detroit, one of just two affordable metro areas, has a household income of only $72,574, but the typical price of a home sold there is only $195,000, which is less than half of the $438,000 national average. The median income of the residents is $12,100 higher than what is required to buy a typical property. Likewise, although Pittsburgh’s median income of $72,532 is about average, the cost of homes there is only $250,000.
Top five most affordable cities for median-income earners:
- Detroit
- Pittsburgh
- Philadelphia
- Cleveland
- Cincinnati
| Rank | Metro area | Median household income | Median home sales price (April 2025) | Income needed with 20% down | Income needed with 0% down |
| U.S. | $77,719 | $438,000 | $123,226 | $147,602 | |
| 1 | Detroit | $72,574 | $195,000 | $60,474 | $71,326 |
| 2 | Pittsburgh | $72,532 | $250,000 | $71,217 | $85,130 |
| 3 | Philadelphia | $86,867 | $290,000 | $87,731 | $103,870 |
| 4 | Cleveland | $67,586 | $235,000 | $69,150 | $82,229 |
| 5 | Cincinnati | $77,844 | $294,000 | $80,336 | $96,698 |
1. Detroit
- Homes in the popular Detroit metro sell for a median price of just $195,000, which is much less than half of the national average of $438,000. This is despite the fact that Detroit’s median income of $72,574 is only $5,000 less than the national median ($77,719).
- At $1,809 per year, the average property tax in the area is reasonable, and the average homeowners insurance premium in Detroit is likewise reasonably priced at $2,343.
- In other respects, Detroit is notable for its profound affordability. For instance, a home costing $234,018—nearly $40,000 more than the average property in the city—could be purchased by persons making the median metro salary.
“Golden State” Buyers Won’t Find Affordability in These Cities
California is home to the four least expensive cities in the study: San Diego, San Francisco, Los Angeles, and San Jose.
Even with a 20% down payment, average households in those four California metro areas fall more than $100,000 short of the median income needed to purchase the median-priced property in the area. This is true even though the median income in each city is far higher than the national average. However, this glaring unaffordability is caused by even higher property prices.
The top five least affordable cities for median-income earners:
- San Jose,
- San Fransisco
- Los Angeles
- San Diego
- New York
| Rank | Metro area | Median household income | Median home sales price (April 2025) | Income needed with 20% down | Income needed with 0% down |
| U.S. | $77,719 | $438,000 | $123,226 | $147,602 | |
| 1 | San Jose, CA | $153,202 | $1,700,000 | $458,297 | $552,904 |
| 2 | San Francisco | $127,792 | $127,792 | $1,550,000 | $415,871 |
| 3 | Los Angeles | $91,960 | $905,000 | $241,149 | $291,514 |
| 4 | San Diego | $103,674 | $920,000 | $246,134 | $297,333 |
| 5 | New York | $95,220 | $765,000 | $233,455 | $276,029 |
In other words, to purchase a typical property in the metro (with a 20% down payment), each of the lowest-income California cities required more than twice the local median income, with San Francisco requiring 325% and San Diego 237%.
Americans Falling Short of Income Needed to Purchase
The places individuals call home across the U.S. are as distinct and varied as the people who live there, from the busy streets of America’s largest cities to the most comfortable and desirable rural communities. The salaries of American homeowners are also rising. However, the median income in places like Massachusetts ($99,858) is more than double that of the typical income earned in Mississippi ($54,203).
But the median household only earns $77,719 year, which is a staggering $45,507. To achieve the needed income level, the average American earners in this household would require a raise of about 59%.
It’s important to keep in mind that the median household income in the U.S. accounts for multiple earners; the actual median personal income in the US is slightly more than $42,000. A person or household making that much money and making a 20% down payment could only buy a property that costs between $145,000 and $160,000, which is difficult to locate in almost every medium-sized and large housing market these days.
Local incomes tend to significantly influence housing costs, with higher-income neighborhoods generally having more expensive homes and the other way around. However, for median-income earners, purchasing a conventional home can be a relative steal in some regions of the nation, but in others, these average-income households are far from realizing their dream of homeownership.
Home prices continue to be the primary driver of housing affordability, but persistent gaps in insurance and property tax costs are becoming more significant, resulting in large disparities in the required income between states with comparable home values.
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