Single-family home prices continued their steady climb in 2024, pushing the cost of homeownership back toward record highs relative to household income. According to a report from Harvard’s Joint Center for Housing Studies, the national median single-family home price rose to five times the median household income last year, nearly matching the previous peak set during the pandemic. The report’s data show that after a brief slowdown the year prior, home values once again outpaced income growth across most major U.S. markets.
The national price-to-income ratio, a key measure of homebuyer affordability, has surged far beyond historical norms. In 2019, the ratio stood at 4.1, while through much of the 1990s it hovered around 3.2, which were levels that made homeownership more attainable for middle-income families. Now, at a ratio of 5.0, owning a home consumes a much greater share of income, placing it increasingly out of reach for many Americans, especially first-time and moderate-income buyers.
The imbalance between prices and incomes worsened across the country. Price-to-income ratios climbed in more than three-quarters of the nation’s 100 largest metropolitan areas, and home prices hit new highs in 35 of them. In 39 metros, prices were at least five times the median income, up sharply from just 15 such markets in 2019. Seven metros, led by San Jose, Los Angeles, San Francisco, and Honolulu, saw price-to-income ratios above 8.0, marking the highest number of severely unaffordable markets since 2006.
Regional Trends
Western cities remain the most expensive, with San Jose setting a record as home prices reached more than twelve times the median household income. Other high-cost metros included Los Angeles (10.8), San Francisco (10.5), and Honolulu (10.3). On the East Coast, Miami (8.0), New York (7.3), and Boston (6.6) also faced extreme affordability pressures.
By contrast, affordable markets are vanishing. Only one-quarter of large metros had home prices less than four times the median income, compared to more than half just five years earlier. Only three markets (Toledo, Akron, and McAllen) had ratios below 3.0, down from 20 in 2019.
The report attributes these record-high ratios primarily to pandemic-era price surges. Nationally, median single-family home prices jumped 48% from 2019 to 2024, more than double the 22% gain in median income. The disparity was even wider in some cities, where home prices grew up to 79% while incomes rose only modestly. With prices far outpacing earnings, would-be homeowners now face steeper down payment hurdles and higher mortgage costs. Elevated interest rates have compounded the strain, further increasing monthly payments and the income needed to qualify for a loan. Unless home prices cool or incomes rise substantially, many Americans will remain locked out of ownership, and the stability and wealth-building opportunities that come with it.
