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Is the 30% Rule Unattainable in 2025? Typical U.S. Household Needs to Spend ~45% of Income to Afford the Median-priced Home

Pittsburgh, Detroit, and St. Louis are the only affordable large metros, while buyers in Los Angeles potentially need to spend more than 100% of the median income on a home

AUSTIN, Texas , June 25, 2025 /PRNewswire/ -- In today's major housing markets, affordability isn't just strained, it's nearly extinct. According to a Realtor.com® Affordability Report, the typical U.S. household would need to spend 44.6% of their income to afford a median-priced home as of May 2025, well above the recommended 30% threshold. As high mortgage rates and home prices continue to weigh on affordability, only three of the top 50 metros are within financial reach for median-income earners: Pittsburgh, Detroit and St. Louis.

"Earnings have risen, but homebuying costs have risen faster, which means that adhering to affordability guidelines can feel challenging if not impossible in many housing markets across the country," said Danielle Hale, Chief Economist at Realtor.com®. "While a few Midwestern markets still offer a path to homeownership for the median-income household who can make a 20% down payment, in most large metros, the dream of owning a home remains out of financial reach without significant changes to either housing supply or interest rates."

Only Three Metros Pass the Affordability Test
Using a standard 20% down payment and May's average mortgage rate of 6.82%, just three major metros allow median-income earners to purchase a median-priced home without exceeding 30% of their income, Pittsburgh, Detroit and St. Louis.

Metro Area

May Median
Listing Price

Monthly with
Tax & Ins.

Annual Mortgage
Pmt + Tax & Ins.

2025 Median
HH Income

Share of
Income

Pittsburgh, PA

$249,900

$1,664

$19,970

$72,935

27.4 %

Detroit-Warren-Dearborn, MI

$270,000

$1,798

$21,576

$72,493

29.8 %

St. Louis, MO-IL

$299,900

$1,997

$23,966

$79,869

30.0 %

These metros remain attractive to both buyers and investors due to their relatively low home prices, but sustained demand for low-priced homes threatens to erode affordability even in these strongholds.

"Detroit has always stood out for its affordability, and even with home prices rising, it remains one of the last major markets where median-income buyers still have a real shot at homeownership," said Anthony Djon, founder of Anthony Djon Luxury Real Estate. "That said, demand is picking up fast – especially in the lower price points. First-time buyers are moving with urgency because they know the window to buy affordably is narrowing."

The Coasts are Out of Reach
On the opposite end of the spectrum, the share of income required to afford a home in California's largest metros far exceeds the national norm. The story of California's lack of affordability isn't new, though the degree to which it is unaffordable may still come as a surprise. As of May 2025, the typical home in Los Angeles requires more than 104% of the area's median income, meaning the average household would be unable to cover annual housing costs, even with zero spending on anything else. Other metros including San Diego, San Jose, New York, and Boston also saw affordability ratios well above 60%.

Metro Area

May Median
Listing Price

Monthly with
Tax & Ins.

Annual Mortgage
Pmt + Tax & Ins.

2025 Median
HH Income

Share of
Income

Los Angeles-Long Beach-Anaheim, CA

$1,195,000

$7,958

$95,496

$91,380

104.5 %

San Diego-Chula Vista-Carlsbad, CA

$995,000

$6,626

$79,513

$103,066

77.1 %

San Jose-Sunnyvale-Santa Clara, CA

$1,419,500

$9,453

$113,436

$156,664

72.4 %

New York-Newark-Jersey City, NY-NJ

$795,000

$5,294

$63,531

$94,960

66.9 %

Boston-Cambridge-Newton, MA-NH

$879,000

$5,854

$70,243

$109,295

64.3 %

That being said, perhaps, it doesn't come as a surprise that 51.0% of households in the Los Angeles area are renters, and just 49.0% of households own their own homes, compared to a homeownership rate of 65.1% nationally.

What will Make America Affordable Again?
There are a couple pathways to making housing more affordable; raise incomes or lower housing costs. While higher wages could help, big pay increases that are widespread can also boost housing demand, pushing home costs higher. Lower housing costs can be achieved, either by bringing down mortgage rates or home prices. Mortgage rates are not expected to move significantly from where they currently sit and recent economic uncertainty makes it harder to predict the mortgage rate path. So what can be done?

Build more affordable homes. Home prices remain stubbornly high in markets that are in-demand but face a growing home supply gap. In contrast, home prices have eased in many markets that have seen significant new construction activity over the last 5+ years. New home supply and new home construction, especially at affordable price points, can help relieve price pressure in tight housing markets.

National & 50 Largest Metro Data (Alphabetical)

Geography

May Median
Listing Price

Monthly
Mortgage Pmt
+ Tax & Ins.

2025 Median
HH Income

Share of
Income

USA

$440,000

$2,930

$78,770

44.6 %

Atlanta-Sandy Springs-Roswell, GA

$419,900

$2,796

$87,947

38.2 %

Austin-Round Rock-San Marcos, TX

$525,000

$3,496

$102,412

41.0 %

Baltimore-Columbia-Towson, MD

$399,999

$2,664

$95,068

33.6 %

Birmingham, AL

$299,900

$1,997

$71,644

33.5 %

Boston-Cambridge-Newton, MA-NH

$879,000

$5,854

$109,295

64.3 %

Buffalo-Cheektowaga, NY

$299,900

$1,997

$71,055

33.7 %

Charlotte-Concord-Gastonia, NC-SC

$450,000

$2,997

$81,514

44.1 %

Chicago-Naperville-Elgin, IL-IN

$379,900

$2,530

$86,627

35.0 %

Cincinnati, OH-KY-IN

$354,975

$2,364

$80,109

35.4 %

Cleveland, OH

$275,000

$1,831

$68,695

32.0 %

Columbus, OH

$389,900

$2,597

$80,469

38.7 %

Dallas-Fort Worth-Arlington, TX

$440,000

$2,930

$88,783

39.6 %

Denver-Aurora-Centennial, CO

$600,000

$3,996

$106,833

44.9 %

Detroit-Warren-Dearborn, MI

$270,000

$1,798

$72,493

29.8 %

Grand Rapids-Wyoming-Kentwood, MI

$399,900

$2,663

$82,065

38.9 %

Hartford-West Hartford-East Hartford, CT

$469,450

$3,126

$94,838

39.6 %

Houston-Pasadena-The Woodlands, TX

$372,500

$2,481

$78,845

37.8 %

Indianapolis-Carmel-Greenwood, IN

$331,500

$2,208

$79,724

33.2 %

Jacksonville, FL

$405,000

$2,697

$81,893

39.5 %

Kansas City, MO-KS

$410,073

$2,731

$80,127

40.9 %

Las Vegas-Henderson-North Las Vegas, NV

$484,999

$3,230

$72,504

53.5 %

Los Angeles-Long Beach-Anaheim, CA

$1,195,000

$7,958

$91,380

104.5 %

Louisville/Jefferson County, KY-IN

$326,990

$2,178

$72,566

36.0 %

Memphis, TN-MS-AR

$350,000

$2,331

$66,946

41.8 %

Miami-Fort Lauderdale-West Palm Beach, FL

$510,000

$3,396

$74,274

54.9 %

Milwaukee-Waukesha, WI

$399,500

$2,660

$74,222

43.0 %

Minneapolis-St. Paul-Bloomington, MN-WI

$446,000

$2,970

$96,855

36.8 %

Nashville-Davidson--Murfreesboro--Franklin, TN

$548,950

$3,656

$85,166

51.5 %

New York-Newark-Jersey City, NY-NJ

$795,000

$5,294

$94,960

66.9 %

Oklahoma City, OK

$329,875

$2,197

$71,503

36.9 %

Orlando-Kissimmee-Sanford, FL

$429,900

$2,863

$74,895

45.9 %

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

$385,000

$2,564

$88,483

34.8 %

Phoenix-Mesa-Chandler, AZ

$525,000

$3,496

$87,718

47.8 %

Pittsburgh, PA

$249,900

$1,664

$72,935

27.4 %

Portland-Vancouver-Hillsboro, OR-WA

$610,707

$4,067

$94,748

51.5 %

Providence-Warwick, RI-MA

$595,000

$3,962

$85,421

55.7 %

Raleigh-Cary, NC

$456,695

$3,041

$98,138

37.2 %

Richmond, VA

$460,000

$3,063

$87,394

42.1 %

Riverside-San Bernardino-Ontario, CA

$600,000

$3,996

$86,146

55.7 %

Sacramento-Roseville-Folsom, CA

$639,000

$4,255

$93,641

54.5 %

San Antonio-New Braunfels, TX

$340,000

$2,264

$73,281

37.1 %

San Diego-Chula Vista-Carlsbad, CA

$995,000

$6,626

$103,066

77.1 %

San Francisco-Oakland-Fremont, CA

$998,800

$6,651

$133,542

59.8 %

San Jose-Sunnyvale-Santa Clara, CA

$1,419,500

$9,453

$156,664

72.4 %

Seattle-Tacoma-Bellevue, WA

$799,000

$5,321

$113,456

56.3 %

St. Louis, MO-IL

$299,900

$1,997

$79,869

30.0 %

Tampa-St. Petersburg-Clearwater, FL

$417,500

$2,780

$73,079

45.7 %

Tucson, AZ

$398,000

$2,650

$67,909

46.8 %

Virginia Beach-Chesapeake-Norfolk, VA-NC

$415,000

$2,764

$80,312

41.3 %

Washington-Arlington-Alexandria, DC-VA-MD-WV

$634,900

$4,228

$123,209

41.2 %

Methodology: Monthly payment assumes May 2025 average Freddie Mac mortgage rate (6.82%), 20% down payment and a tax and insurance rate of 1.72% annually. 'Affordable' refers to the 30% rule-of-thumb, which suggests that households should spend 30% or less of their annual income on housing. The median household is a 2025 estimate based on the latest Census data. Median listing prices are from May 2025.

About Realtor.com ®
 Realtor.com ® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media Contact: Asees Singh, press@realtor.com

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SOURCE Realtor.com