Why Are Houses So Expensive? 2025 Data Shows Just Two Affordable U.S. Cities for Buying Homes

American Median Home Prices vs. Required Incomes | Affordable Housing for Median Earners in Just Two Cities | Most and Least Affordable States | Homeowners Insurance and Property Tax Differences | Methodology | FAQs 

From the bustling streets of America’s biggest cities to the quietest rural towns, the places people call home across the United States are as unique and diverse as the people who live there. So too are the incomes of American homeowners, with median earners in Massachusetts ($99,858) making nearly twice as much as those in Mississippi ($54,203). 

As might be expected, the cost of housing tends to follow local incomes, with high-income areas typically offering pricier homes and vice versa. However, this relationship isn’t the same everywhere. In some parts of the country, buying the typical house can be a relative bargain for median earners, while in others, these average-income households find themselves far from the dream of homeownership. 

Overall, just two of America’s 50 largest metros offer median salaries that are high enough for those earning them to affordably buy a median-priced home: Detroit and Pittsburgh. 

In addition, Iowa is the only state in the nation that’s affordable on a statewide basis.

Meanwhile, although home prices remain the most significant factor in housing affordability, the differences in property tax and insurance expenses are growing in influence, creating wide gaps in necessary income between states with similarly priced homes.

To find out more, Clever Real Estate analyzed data, including the average price of a home sold in each market, median household incomes, property tax rates, and homeowners insurance costs for these largest markets, and factored this against the well-known 28% rule for home affordability. This rule of thumb dictates that a household’s housing costs shouldn’t exceed more than 28% of its gross, pre-tax income. 

Read on to learn more about the bleak housing affordability picture for median-earning Americans and which areas offer better opportunities for owning a typical home on a typical salary.

Rank	Metro Area	Median Household Income	Median Home Sales Price, April 2025	Income Needed With 20% Down	Income Needed With 0% Down	Income Gap to Afford Median Home With 20% Down	Income Gap to Afford Median Home With 0% Down	Actual Affordable Home Price, 20% Down*	Actual Affordable Home Price, 0% Down*	Annual Insurance Cost on Median-Priced Home
-	United States	$77,719	$438,000	$123,226	$147,602	$45,507	$69,883	$276,247	$230,627	$3,400
1	Detroit, MI	$72,574	$195,000	$60,474	$71,326	-$12,100	-$1,248	$234,018	$198,413	$2,343
2	Pittsburgh, PA	$72,532	$250,000	$71,217	$85,130	-$1,315	$12,598	$254,617	$213,005	$1,046
3	Philadelphia, PA	$86,867	$290,000	$87,731	$103,870	$864	$17,003	$287,144	$242,529	$1,213
4	Cleveland, OH	$67,586	$235,000	$69,150	$82,229	$1,564	$14,643	$229,683	$193,153	$1,085
5	Cincinnati, OH	$77,844	$294,000	$80,336	$96,698	$2,492	$18,854	$284,879	$236,677	$1,357
6	St. Louis, MO	$78,224	$273,000	$82,295	$97,488	$4,071	$19,264	$259,494	$219,054	$2,220
7	Indianapolis, IN	$77,947	$310,000	$84,206	$101,458	$6,259	$23,511	$286,957	$238,163	$2,028
8	Louisville, KY	$68,921	$273,000	$79,555	$94,748	$10,634	$25,827	$236,509	$198,585	$3,186
9	Buffalo, NY	$69,861	$255,000	$82,313	$96,504	$12,452	$26,643	$216,423	$184,598	$1,588
10	Oklahoma City, OK	$69,895	$268,000	$84,904	$99,818	$15,009	$29,923	$220,624	$187,659	$4,852
11	Kansas City, MO	$79,842	$330,000	$94,982	$113,347	$15,140	$33,505	$277,398	$232,453	$2,684
12	Birmingham, AL	$69,284	$315,000	$85,429	$102,959	$16,145	$33,675	$255,470	$211,973	$3,178
13	Virginia Beach, VA	$79,325	$355,000	$95,701	$115,458	$16,376	$36,133	$294,252	$243,902	$1,982
14	Baltimore, MD	$94,289	$395,000	$111,649	$133,631	$17,360	$39,342	$333,584	$278,710	$2,532
15	Columbus, OH	$77,390	$337,000	$95,177	$113,932	$17,787	$36,542	$274,019	$228,913	$1,607
16	Memphis, TN	$64,025	$295,000	$84,719	$101,136	$20,694	$37,111	$222,942	$186,753	$3,447
17	Grand Rapids, MI	$77,979	$345,000	$99,293	$118,493	$21,314	$40,514	$270,943	$227,041	$2,469
18	Minneapolis, MN	$95,102	$400,000	$117,547	$139,808	$22,445	$44,706	$323,621	$272,093	$3,604
19	Richmond, VA	$84,332	$400,000	$106,909	$129,170	$22,577	$44,838	$315,527	$261,151	$2,233
20	Milwaukee, WI	$77,006	$347,000	$100,075	$119,386	$23,069	$42,380	$267,009	$223,820	$1,447
21	Atlanta, GA	$86,505	$400,000	$109,760	$132,021	$23,255	$45,516	$315,251	$262,095	$2,585
22	Raleigh, NC	$96,096	$441,000	$120,069	$144,612	$23,973	$48,516	$352,949	$293,049	$3,014
23	San Antonio, TX	$73,195	$310,000	$98,609	$115,861	$25,414	$42,666	$230,106	$195,843	$4,184
24	Charlotte, NC	$81,262	$409,000	$107,912	$130,673	$26,650	$49,411	$307,993	$254,345	$2,003
25	Chicago, IL	$87,071	$370,000	$118,197	$138,788	$31,126	$51,717	$272,564	$232,126	$3,161
26	Houston, TX	$79,463	$340,000	$115,194	$134,115	$35,731	$54,652	$234,539	$201,449	$6,046
27	Las Vegas, NV	$75,065	$449,000	$113,839	$138,826	$38,774	$63,761	$296,069	$242,779	$1,660
28	Jacksonville, FL	$77,044	$370,000	$115,831	$136,422	$38,787	$59,378	$246,101	$208,956	$6,671
29	Phoenix, AZ	$85,700	$458,000	$125,174	$150,662	$39,474	$64,962	$313,568	$260,520	$4,232
30	Washington, DC	$121,469	$600,000	$161,911	$195,302	$40,442	$73,833	$450,131	$373,173	$2,964
31	Austin, TX	$98,508	$450,000	$139,062	$164,105	$40,554	$65,597	$318,768	$270,123	$3,855
32	Fresno, CA	$71,140	$418,000	$112,172	$135,434	$41,032	$64,294	$265,097	$219,564	$2,332
33	Nashville, TN	$84,685	$470,000	$126,705	$152,861	$42,020	$68,176	$314,132	$260,381	$3,873
34	Salt Lake City, UT	$94,409	$530,000	$136,876	$166,371	$42,467	$71,962	$365,562	$300,754	$2,240
35	Tampa, FL	$72,743	$370,000	$116,256	$136,847	$43,513	$64,104	$231,514	$196,679	$6,671
36	Orlando, FL	$77,378	$408,000	$128,233	$150,939	$50,855	$73,561	$246,194	$209,159	$7,356
37	Dallas, TX	$86,860	$425,000	$138,791	$162,443	$51,931	$75,583	$265,978	$227,252	$5,849
38	Portland, OR	$94,925	$559,000	$147,663	$178,772	$52,738	$83,847	$359,353	$296,821	$1,906
39	Providence, RI	$83,330	$485,000	$142,700	$169,690	$59,370	$86,360	$283,218	$238,169	$3,786
40	Sacramento, CA	$94,992	$590,000	$159,312	$192,146	$64,320	$97,154	$351,797	$291,681	$3,292
41	Denver, CO	$103,055	$600,000	$168,958	$202,349	$65,903	$99,294	$365,967	$305,577	$7,144
42	Riverside, CA	$87,843	$596,000	$160,783	$193,951	$72,940	$106,108	$325,621	$269,936	$3,326
43	Boston, MA	$110,697	$750,000	$215,387	$257,125	$104,690	$146,428	$385,458	$322,888	$4,210
44	Miami, FL	$76,271	$590,000	$188,008	$220,842	$111,737	$144,571	$239,352	$203,765	$10,638
45	Seattle, WA	$110,744	$850,000	$230,379	$277,683	$119,635	$166,939	$408,598	$338,993	$4,242
46	New York, NY	$95,220	$765,000	$233,455	$276,029	$138,235	$180,809	$312,022	$263,898	$4,763
47	San Diego, CA	$103,674	$920,000	$246,134	$297,333	$142,460	$193,659	$387,513	$320,786	$5,134
48	Los Angeles, CA	$91,960	$905,000	$241,149	$291,514	$149,189	$199,554	$345,113	$285,489	$4,959
49	San Francisco, CA	$127,792	$1,550,000	$415,871	$502,130	$288,079	$374,338	$476,296	$394,475	$8,649
50	San Jose, CA	$153,202	$1,700,000	$458,297	$552,904	$305,095	$399,702	$568,285	$471,046	$9,486

*Using the 28% rule and typical state homeowners insurance and property tax rates.

Typical American Household Earns Just 70% of Income Required to Afford Median-Priced Home

Although it’s obvious that there are profound differences in the cost of housing between different cities and states, it’s critical to recognize that the nation overall faces significant affordability issues. 

To afford the median-priced U.S. home of $438,000, homebuyers would need a household income of $123,226. This is based on a metric of 28% of income spent on total housing costs, with 20% down and a 6.65% mortgage rate, plus nationwide averages for home insurance and property taxes.

However, the median household is only making $77,719 per year, an astounding shortfall of $45,507. The typical earners in this household would need a roughly 59% raise to reach the income level required. 

It’s worth considering that the median household income in the United States takes into account more than one earner; real median personal income in the United States is just over $42,000. For a person or household earning that amount and putting 20% down, they’d only be able to affordably purchase a home that costs $145,000 to $160,000, a challenging thing to find these days in just about every medium and large housing market. 

Household Income (National Data)	House That Could Be Afforded With 20% Down*	House That Could Be Afforded With 0% Down*
$30,000	$106,633	$89,023
$40,000	$142,177	$118,698
$50,000	$177,722	$148,372
$60,000	$213,266	$178,047
$70,000	$248,810	$207,721
$77,719 (U.S. median)	$276,247	$230,627
$80,000	$284,354	$237,396
$90,000	$319,899	$267,070
$100,000	$355,443	$296,745
$110,000	$390,987	$326,419
$120,000	$426,532	$356,093
$130,000	$462,076	$385,768
$140,000	$497,620	$415,442
$150,000	$533,165	$445,117
$160,000	$568,709	$474,791
$170,000	$604,253	$504,466
$180,000	$639,797	$534,140
$190,000	$675,342	$563,815
$200,000	$710,886	$593,489
$210,000	$746,430	$623,164
$220,000	$781,975	$652,838
$230,000	$817,519	$682,513
$240,000	$853,063	$712,187
$250,000	$888,608	$741,861

*Using the 28% rule and typical state homeowners insurance and property tax rates.

For the actual median US household income of $77,719, with a 20% down payment, the median home price that would be affordable by that same 28% metric is $276,247 — a nearly impossible-to-overcome difference of more than $160,000 compared to the actual median home. 

For these calculations, Clever used a full 20% down payment, the minimum amount many loans require to avoid extra costs like mortgage insurance. However, real-world data shows that’s not always the case, especially for first-time buyers, who put down an average of just 9%. 

Lower down payments translate into higher monthly payments, meaning these buyers are faced with even more stark unaffordability. For example, those lucky enough to qualify for 0% down payment loans, such as those offered by the VA and USDA, would need to earn $147,602 to affordably buy the median American home.

Just Two U.S. Cities Offer Truly Affordable Homes for Local Earners

With an increasing portion of America’s population concentrated in big metros and their suburbs, the status of the 50 highest-population cities in the United States reveals a lot about the nation’s housing affordability — and the news isn’t good. 

Using the 28% metric and a 20% down payment, people making the local median income can only affordably buy a home in two U.S. metro areas: Detroit and Pittsburgh. Philadelphia, Cleveland, and Cincinnati come close, missing on affordability by $2,500 or less in annual income, meaning a slight change in interest rates or a slightly more buyer-friendly local housing market would make them affordable.  

1. Detroit

Those looking for truly affordable living better enjoy Motown music and Detroit-style pizza, as the Motor City offers a uniquely beneficial situation for budget-minded buyers.

Although Detroit's median income of $72,574 is only about $5,000 shy of the nationwide median ($77,719), homes there sell for a median of just $195,000, well under half of the national average of $438,000.  

The area offers moderate property tax costs for the typical home at $1,809 annually, while Detroit’s typical homeowners insurance premium of $2,343 is also relatively affordable. 

Detroit also stands out for its deep affordability in other ways. For example, residents earning the median metro salary could affordably buy a home as expensive as $234,018, nearly $40,000 more than the city’s typical property.

Those looking to affordably buy a home with 0% down need to start shopping here as well, as Detroit is the only major U.S. metro where a household earning the local median income could do so, clearing the bar by $1,248.

2. Pittsburgh

Pittsburgh provides a similar situation to Detroit, a few hundred miles southeast. The metro boasts a median income of $72,532, close to the national median. Although typical homes cost $250,000 ($55,000 more than in Detroit), that’s still substantially lower than the nationwide level of $438,000. 

Typical local household annual incomes clear the bar for purchasing the average home by $1,315. Put another way, with a 20% down payment, Pittsburgh’s median household income would support purchases up to $254,617.

3. Philadelphia

Most people familiar with housing know the Northeast faces higher prices compared to the Midwest and South, a difficulty often moderated by the region’s generally higher local incomes. However, Philadelphia offers the best of both worlds.

The City of Brotherly Love has a median income of $86,867, nearly 12% higher than the national median ($77,719). However, the median home price of $290,000 is still far below the nationwide median – nearly $150,000 lower, a substantial sum that could make or break the prospect of homebuying for many. 

The typical Philadelphia household earns just $864 less than would be required to affordably buy the area’s median-priced home. Among the five most affordable cities, local incomes also support the highest affordable home price, $287,144. 

4.  Cleveland

Cleveland presents a common situation shared with many parts of the Midwest: lower-than-average incomes but appropriately lower home prices, too. Median earners in Cleveland bring home $67,586 per year (just 87% of the nationwide average), but that’s nearly enough to buy the median home at $235,000.

Median household income in Cleveland is only $1,564 less per year than would be required, a difference of only about $130 each month.

5.  Cincinnati

Rounding out the top five is Cincinnati, yet another Ohio city that exhibits the familiar phenomenon of reasonable salaries paired with very affordable homes.

In fact, Cincinnati stands out in this regard by actually having a median household income ($77,844) that’s higher than the national number ($77,719), while having a median home price that’s more than $140,000 below the national median ($294,000 versus $438,000).

Four More Cities Relatively Close to Affordability

Another four cities are less than $15,000 short of the median incomes residents would need to buy a typical home: 

• St. Louis ($4,071 short)
• Indianapolis ($6,259 short)
• Louisville ($10,634 short)
• Buffalo ($12,452 short)

Although the pickings are slim, those with a focus on making their salary stretch as far as possible housing-wise can at least take comfort in the fact that the most affordable cities based on local incomes are spread relatively widely across the country’s central and eastern regions.

Of the 10 most affordable cities when it comes to typical home prices and incomes, five are in the Midwest, two are in the South, and three are in the Northeast: 

1. Detroit, Michigan
2. Pittsburgh, Pennsylvania
3. Philadelphia, Pennsylvania
4. Cleveland, Ohio
5. Cincinnati, Ohio
6. St. Louis, Missouri
7. Indianapolis, Indiana
8. Louisville, Kentucky
9. Buffalo, New York
10. Oklahoma City, Oklahoma

California Home to the Four Least Affordable Cities

On the flip side, the four least affordable cities in our study are in California: San Jose, San Francisco, Los Angeles, and San Diego.

Typical households in those four California metros are each more than a jaw-dropping $100,000 shy of the median income required to buy the area’s median-priced home — even with a 20% down payment. This is despite the fact that median earners in each city make significantly more than the national average. However, home prices are even more elevated, leading to this stark unaffordability. 

Put another way, each of the bottom California cities requires more than twice the local median income to buy a typical home in the metro (with 20% down), ranging from 325% in San Francisco to 237% in San Diego. 

City	Median Income	Median Home Sales Price	Household Income Required to Afford Median Home, 20% Down*	Percentage of Median Income Required*	Actual Affordable Home Price*	Difference From Actual Median Home Price
San Jose, CA	$153,202	$1,700,000	$458,297	299%	$568,285	$1,131,715
San Francisco, CA	$127,792	$1,550,000	$415,871	325%	$476,296	$1,073,704
Los Angeles, CA	$91,960	$905,000	$241,149	262%	$345,113	$559,887
San Diego, CA	$103,674	$920,000	$246,134	237%	$387,513	$532,487

*Based on median home price and median income; **Based on median income with 20% down, using the 28% rule. 

Other cities with a six-figure income gap include New York ($138,235), Seattle ($119,635), Miami ($111,737), and Boston ($104,690).

One thing California has going for it is relatively moderate property taxes, held in check by the state’s sometimes-controversial Proposition 13, which limits increases for current homeowners. Supporters argue that it allows longtime owners to stay in their homes by maintaining rock-bottom assessments, while opponents contend that new buyers face sky-high taxes reflecting current prices, effectively subsidizing low rates on current owners. Therefore, the affordability picture can be significantly different for long-term vs. new homeowners in the Golden State. 

It’s not much better anywhere near California, either. The West is home to seven of the ten most unaffordable cities by median income and home price, with just two in the Northeast and one in the South: 

1. San Jose, California
2. San Francisco, California
3. Los Angeles, California
4. San Diego, California
5. New York, New York
6. Seattle, Washington
7. Miami, Florida
8. Boston, Massachusetts
9. Riverside, California
10. Denver, Colorado

Although the Golden State faces widespread unaffordability, Miami stands out compared to Florida as a whole. For the state of Florida overall, median earners are $55,194 per year short of buying the typical home, while those making the median income in Miami are $111,737 below the necessary amount.

Residents of Midwestern States Have Best Chance of Affording Typical Local Home

Rank	State	Median Household Income	Median Home Sales Price, April 2025	Income Needed With 20% Down	Income Needed With 0% Down	Income Gap to Afford Median Home With 20% Down	Income Gap to Afford Median Home With 0% Down	Actual Affordable Home Price, 20% Down*	Actual Affordable Home Price, 0% Down*	Annual Insurance Cost on Median-Priced Home
-	United States	$77,719	$438,000	$123,226	$147,602	$45,507	$69,883	$276,247	$230,627	$3,400
1	Iowa	$71,433	$239,000	$70,436	$83,737	-$997	$12,304	$242,383	$203,883	$1,886
2	Indiana	$69,477	$267,000	$72,302	$87,161	$2,825	$17,684	$256,567	$212,828	$1,547
3	Ohio	$67,769	$254,000	$72,613	$86,748	$4,844	$18,979	$237,055	$198,428	$1,173
4	West Virginia	$55,948	$248,000	$62,436	$76,238	$6,488	$20,290	$222,228	$181,998	$834
5	Missouri	$68,545	$271,000	$76,715	$91,796	$8,170	$23,251	$242,139	$202,358	$2,204
6	Michigan	$69,183	$270,000	$78,094	$93,119	$8,911	$23,936	$239,193	$200,596	$1,932
7	Delaware	$81,361	$359,000	$90,446	$110,424	$9,085	$29,063	$322,941	$264,512	$1,154
8	North Dakota	$76,525	$299,000	$86,204	$102,843	$9,679	$26,318	$265,429	$222,484	$2,690
9	Pennsylvania	$73,824	$306,000	$85,694	$102,723	$11,870	$28,899	$263,615	$219,913	$1,280
10	Oklahoma	$62,138	$251,000	$76,590	$90,559	$14,452	$28,421	$203,638	$172,227	$3,868
11	Louisiana	$58,229	$251,000	$73,190	$87,158	$14,961	$28,929	$199,693	$167,689	$3,468
12	Alaska	$86,631	$384,000	$102,266	$123,636	$15,635	$37,005	$325,291	$269,066	$1,206
13	Arkansas	$58,700	$267,000	$74,352	$89,211	$15,652	$30,511	$210,792	$175,683	$2,762
14	Kentucky	$61,118	$266,000	$77,234	$92,037	$16,116	$30,919	$210,494	$176,639	$3,104
15	Alabama	$62,212	$290,000	$78,734	$94,873	$16,522	$32,661	$229,144	$190,164	$2,926
16	Illinois	$80,306	$313,000	$98,140	$115,558	$17,834	$35,252	$256,123	$217,516	$2,242
17	Wisconsin	$74,631	$329,000	$92,824	$111,133	$18,193	$36,502	$264,517	$220,938	$1,372
18	Kansas	$70,333	$289,000	$91,805	$107,888	$21,472	$37,555	$221,407	$188,401	$4,253
19	South Dakota	$71,810	$317,000	$93,495	$111,137	$21,685	$39,327	$243,475	$204,827	$3,282
20	Minnesota	$85,086	$369,000	$107,062	$127,597	$21,976	$42,511	$293,258	$246,062	$3,325
21	Mississippi	$54,203	$268,000	$76,217	$91,131	$22,014	$36,928	$190,594	$159,401	$3,082
22	Maryland	$98,678	$449,000	$123,313	$148,301	$24,635	$49,623	$359,299	$298,761	$2,501
23	Nebraska	$74,590	$299,000	$103,532	$120,171	$28,942	$45,581	$215,417	$185,589	$6,077
24	Georgia	$74,632	$381,000	$104,085	$125,288	$29,453	$50,656	$273,189	$226,956	$2,463
25	North Carolina	$70,804	$382,000	$102,816	$124,075	$32,012	$53,271	$263,063	$217,990	$2,610
26	Wyoming	$72,415	$414,000	$106,727	$129,767	$34,312	$57,352	$280,902	$231,029	$1,802
27	South Carolina	$67,804	$381,000	$102,828	$124,031	$35,024	$56,227	$251,228	$208,281	$3,254
28	Texas	$75,780	$348,000	$111,144	$130,510	$35,364	$54,730	$237,274	$202,064	$4,697
29	Maine	$73,733	$408,000	$110,207	$132,913	$36,474	$59,180	$272,968	$226,336	$1,593
30	New Mexico	$62,268	$368,000	$99,596	$120,075	$37,328	$57,807	$230,077	$190,836	$2,705
31	Virginia	$89,931	$474,000	$128,001	$154,380	$38,070	$64,449	$333,022	$276,119	$2,647
32	Tennessee	$67,631	$392,000	$105,895	$127,710	$38,264	$60,079	$250,355	$207,590	$3,297
33	Arizona	$77,315	$441,000	$117,037	$141,579	$39,722	$64,264	$291,326	$240,826	$3,343
34	Connecticut	$91,665	$451,000	$133,189	$158,287	$41,524	$66,622	$310,393	$261,176	$2,508
35	Nevada	$76,364	$467,000	$118,128	$144,117	$41,764	$67,753	$301,894	$247,452	$1,680
36	Vermont	$81,211	$439,000	$124,372	$148,803	$43,161	$67,592	$286,654	$239,590	$1,228
37	New Hampshire	$96,838	$496,000	$141,489	$169,092	$44,651	$72,254	$339,474	$284,057	$1,708
38	Idaho	$74,942	$474,000	$121,371	$147,750	$46,429	$72,808	$292,677	$240,424	$2,165
39	Utah	$93,421	$563,000	$143,275	$174,607	$49,854	$81,186	$367,098	$301,225	$2,380
40	Florida	$73,311	$410,000	$128,505	$151,322	$55,194	$78,011	$233,902	$198,633	$7,392
41	Oregon	$80,160	$517,000	$136,037	$164,809	$55,877	$84,649	$304,642	$251,459	$1,834
42	Rhode Island	$84,972	$496,000	$142,841	$170,444	$57,869	$85,472	$295,057	$247,273	$3,872
43	New Jersey	$99,781	$549,000	$164,731	$195,284	$64,950	$95,503	$332,540	$280,514	$2,189
44	Montana	$70,804	$529,000	$146,714	$176,154	$75,910	$105,350	$255,294	$212,629	$4,934
45	Colorado	$92,911	$623,000	$174,149	$208,820	$81,238	$115,909	$332,379	$277,194	$6,816
46	Massachusetts	$99,858	$658,000	$182,460	$219,078	$82,602	$119,220	$360,115	$299,922	$3,694
47	Washington	$94,605	$663,000	$177,319	$214,216	$82,714	$119,611	$353,730	$292,803	$3,353
48	New York	$82,095	$573,000	$166,080	$197,968	$83,985	$115,873	$283,240	$237,617	$3,568
49	Hawaii	$95,322	$770,000	$192,525	$235,377	$97,203	$140,055	$381,238	$311,832	$3,450
50	California	$95,521	$856,000	$229,008	$276,646	$133,487	$181,125	$357,044	$295,562	$4,776

*Using the 28% rule and typical state homeowners insurance and property tax rates.

To be sure, life in the nation’s 50 largest metropolitan areas isn’t for everyone. Although those who prefer a suburban or rural lifestyle might expect the cost of living to be affordable, that’s not always the case in many states.

On a statewide basis, just one state is affordable using the 28% standard and 20% down, using local incomes and median house prices: Iowa. 

However, there’s not much room to spare, with Iowa median incomes reaching 98.6% of the amount required ($997 more than needed).  

Alongside Iowa, most of the others in the top five are also in the Midwest: Indiana (104.1% of median income needed), Ohio (107.1%), West Virginia (111.6%), and Missouri (111.9%). 

All benefit from median home prices substantially lower than the national median ($438,000), ranging from $239,000 in Iowa to $271,000 in Missouri. Notably, they also earn top spots even as median incomes in each of these states remain under the national average.  

The tax and insurance costs of these states are low, too. Indiana ($2,052), Iowa ($2,940), Missouri ($2,388), Ohio ($3,324), and West Virginia ($1,188) all provide savings to buyers with lower-than-average property tax costs compared to the nation overall ($3,803). Meanwhile, Ohio ($1,176), Indiana ($1,548), Iowa ($1,884), West Virginia ($840), and Missouri ($2,208) also offer lower homeowners insurance costs on a typical home than the national average of $3,400. 

More broadly, seven states come relatively close to affordability with income gaps under $10,000 on a 20% down, median-priced home purchase: 

1. Indiana ($2,825)
2. Ohio ($4,844)
3. West Virginia ($6,488)
4. Missouri ($8,170)
5. Michigan ($8,911)
6. Delaware ($9,085)
7. North Dakota ($9,679)

Unfortunately for those without substantial savings, no state has a median income that supports payments on a median-priced home with a zero-percent down payment. Iowa is closest, at $12,304 per year (or over $1,000 per month) short.

On the other end of the spectrum, there’s more geographic diversity in the least affordable states, which include California, Hawaii, New York, Washington, and Massachusetts. Median-earners in last-place California miss the mark for affordability by $133,487 with a 20% down payment on a typical home, over $30,000 more than No. 49 Hawaii ($97,203 short). 

A total of 11 states have median incomes of more than $50,000 less than buyers would need to buy the typical home with a full 20% down payment:

1. California: $133,487
2. Hawaii: $97,203
3. New York: $83,985
4. Washington: $82,714
5. Massachusetts: $82,602
6. Colorado: $81,238
7. Montana: $75,910
8. New Jersey: $64,950
9. Rhode Island: $57,869
10. Oregon: $55,877
11. Florida: $55,194

California would need to more than double its median income to 239.7% of current levels to reach affordability, the only state faced with such a profound predicament when putting down 20%. 

However, those taking out 0% down mortgages would need more than twice the median income to buy a typical home in ten states: 

1. California (289.6%)
2. Montana (248.8%)
3. Hawaii (246.9%)
4. New York (241.1%)
5. Washington (226.4%)
6. Colorado (224.8%)
7. Massachusetts (219.4%)
8. Florida (206.4%)
9. Oregon (205.6%)
10. Rhode Island (200.5%)

Based on current statewide household incomes and a 20% down payment, Mississippi would have the lowest price for a genuinely affordable home: $190,594, resulting from its last-place median income of $54,203. It’s followed by Louisiana, where a median income of $58,229 could affordably buy a $199,693 home, and Oklahoma, where affordable homes would sell for $203,638, based on a $62,138 median household income.

Rank	State	Median Household Income	Median Home Sales Price, April 2025	Actual Affordable Home Price, 20% Down*	Actual Affordable Home Price, 0% Down*
	United States	$77,719	$438,000	$276,247	$230,627
50	Mississippi	$54,203	$268,000	$190,594	$159,401
49	Louisiana	$58,229	$251,000	$199,693	$167,689
48	Oklahoma	$62,138	$251,000	$203,638	$172,227
47	Arkansas	$58,700	$267,000	$210,792	$175,683
46	Kentucky	$61,118	$266,000	$210,494	$176,639
45	West Virginia	$55,948	$248,000	$222,228	$181,998
44	Nebraska	$74,590	$299,000	$215,417	$185,589
43	Kansas	$70,333	$289,000	$221,407	$188,401
42	Alabama	$62,212	$290,000	$229,144	$190,164
41	New Mexico	$62,268	$368,000	$230,077	$190,836
40	Ohio	$67,769	$254,000	$237,055	$198,428
39	Florida	$73,311	$410,000	$233,902	$198,633
38	Michigan	$69,183	$270,000	$239,193	$200,596
37	Texas	$75,780	$348,000	$237,274	$202,064
36	Missouri	$68,545	$271,000	$242,139	$202,358
35	Iowa	$71,433	$239,000	$242,383	$203,883
34	South Dakota	$71,810	$317,000	$243,475	$204,827
33	Tennessee	$67,631	$392,000	$250,355	$207,590
32	South Carolina	$67,804	$381,000	$251,228	$208,281
31	Montana	$70,804	$529,000	$255,294	$212,629
30	Indiana	$69,477	$267,000	$256,567	$212,828
29	Illinois	$80,306	$313,000	$256,123	$217,516
28	North Carolina	$70,804	$382,000	$263,063	$217,990
27	Pennsylvania	$73,824	$306,000	$263,615	$219,913
26	Wisconsin	$74,631	$329,000	$264,517	$220,938
25	North Dakota	$76,525	$299,000	$265,429	$222,484
24	Maine	$73,733	$408,000	$272,968	$226,336
23	Georgia	$74,632	$381,000	$273,189	$226,956
22	Wyoming	$72,415	$414,000	$280,902	$231,029
21	New York	$82,095	$573,000	$283,240	$237,617
20	Vermont	$81,211	$439,000	$286,654	$239,590
19	Idaho	$74,942	$474,000	$292,677	$240,424
18	Arizona	$77,315	$441,000	$291,326	$240,826
17	Minnesota	$85,086	$369,000	$293,258	$246,062
16	Rhode Island	$84,972	$496,000	$295,057	$247,273
15	Nevada	$76,364	$467,000	$301,894	$247,452
14	Oregon	$80,160	$517,000	$304,642	$251,459
13	Connecticut	$91,665	$451,000	$310,393	$261,176
12	Delaware	$81,361	$359,000	$322,941	$264,512
11	Alaska	$86,631	$384,000	$325,291	$269,066
10	Virginia	$89,931	$474,000	$333,022	$276,119
9	Colorado	$92,911	$623,000	$332,379	$277,194
8	New Jersey	$99,781	$549,000	$332,540	$280,514
7	New Hampshire	$96,838	$496,000	$339,474	$284,057
6	Washington	$94,605	$663,000	$353,730	$292,803
5	California	$95,521	$856,000	$357,044	$295,562
4	Maryland	$98,678	$449,000	$359,299	$298,761
3	Massachusetts	$99,858	$658,000	$360,115	$299,922
2	Utah	$93,421	$563,000	$367,098	$301,225
1	Hawaii	$95,322	$770,000	$381,238	$311,832

*Using the 28% rule and typical state homeowners insurance and property tax rates.

West Virginia Provides Best Value for Remote Workers, California Offers Worst

With a considerable number of Americans working remotely post-COVID, many have looked to take their big-city salaries and relocate to areas with lower costs of living. For this group, it’s worth examining where the salary required to own the average home is lowest in absolute terms.

On a statewide basis, this is West Virginia, where the state’s typical home can be purchased affordably (with a 20% down payment) with a household income of $62,436. That’s followed by Iowa ($70,436), Indiana ($72,302), Ohio ($72,613), and Louisiana ($73,190).

California is far and away the leader for the highest income required to buy the median home, $229,008. That’s around $35,000 more than the next highest, Hawaii ($192,525). Massachusetts ($182,460), Washington ($177,319), and Colorado ($174,149) also sit near the top of the list. 

Rank	State	Median Household Income	Median Home Sales Price, April 2025	Income Needed With 20% Down*	Income Needed With 0% Down*
	United States	$77,719	$438,000	$123,226	$147,602
1	West Virginia	$55,948	$248,000	$62,436	$76,238
2	Iowa	$71,433	$239,000	$70,436	$83,737
3	Indiana	$69,477	$267,000	$72,302	$87,161
4	Ohio	$67,769	$254,000	$72,613	$86,748
5	Louisiana	$58,229	$251,000	$73,190	$87,158
6	Arkansas	$58,700	$267,000	$74,352	$89,211
7	Mississippi	$54,203	$268,000	$76,217	$91,131
8	Oklahoma	$62,138	$251,000	$76,590	$90,559
9	Missouri	$68,545	$271,000	$76,715	$91,796
10	Kentucky	$61,118	$266,000	$77,234	$92,037
11	Michigan	$69,183	$270,000	$78,094	$93,119
12	Alabama	$62,212	$290,000	$78,734	$94,873
13	Pennsylvania	$73,824	$306,000	$85,694	$102,723
14	North Dakota	$76,525	$299,000	$86,204	$102,843
15	Delaware	$81,361	$359,000	$90,446	$110,424
16	Kansas	$70,333	$289,000	$91,805	$107,888
17	Wisconsin	$74,631	$329,000	$92,824	$111,133
18	South Dakota	$71,810	$317,000	$93,495	$111,137
19	Illinois	$80,306	$313,000	$98,140	$115,558
20	New Mexico	$62,268	$368,000	$99,596	$120,075
21	Alaska	$86,631	$384,000	$102,266	$123,636
22	North Carolina	$70,804	$382,000	$102,816	$124,075
23	South Carolina	$67,804	$381,000	$102,828	$124,031
24	Nebraska	$74,590	$299,000	$103,532	$120,171
25	Georgia	$74,632	$381,000	$104,085	$125,288
26	Tennessee	$67,631	$392,000	$105,895	$127,710
27	Wyoming	$72,415	$414,000	$106,727	$129,767
28	Minnesota	$85,086	$369,000	$107,062	$127,597
29	Maine	$73,733	$408,000	$110,207	$132,913
30	Texas	$75,780	$348,000	$111,144	$130,510
31	Arizona	$77,315	$441,000	$117,037	$141,579
32	Nevada	$76,364	$467,000	$118,128	$144,117
33	Idaho	$74,942	$474,000	$121,371	$147,750
34	Maryland	$98,678	$449,000	$123,313	$148,301
35	Vermont	$81,211	$439,000	$124,372	$148,803
36	Virginia	$89,931	$474,000	$128,001	$154,380
37	Florida	$73,311	$410,000	$128,505	$151,322
38	Connecticut	$91,665	$451,000	$133,189	$158,287
39	Oregon	$80,160	$517,000	$136,037	$164,809
40	New Hampshire	$96,838	$496,000	$141,489	$169,092
41	Rhode Island	$84,972	$496,000	$142,841	$170,444
42	Utah	$93,421	$563,000	$143,275	$174,607
43	Montana	$70,804	$529,000	$146,714	$176,154
44	New Jersey	$99,781	$549,000	$164,731	$195,284
45	New York	$82,095	$573,000	$166,080	$197,968
46	Colorado	$92,911	$623,000	$174,149	$208,820
47	Washington	$94,605	$663,000	$177,319	$214,216
48	Massachusetts	$99,858	$658,000	$182,460	$219,078
49	Hawaii	$95,322	$770,000	$192,525	$235,377
50	California	$95,521	$856,000	$229,008	$276,646

*Using the 28% rule and typical state homeowners insurance and property tax rates.

When it comes to cities, Detroit remains in first place with a required income of $60,474 to buy the typical Motor City home. Cleveland takes second at $69,150, while Pittsburgh ($71,217), Louisville, Kentucky ($79,555), and Cincinnati, Ohio ($80,336) round out the top five.

Conversely, those moving to San Jose, California, would need to bring a $458,297 annual salary to buy the area’s median-priced home. Nearby San Francisco isn’t far behind at $415,871, followed by San Diego ($246,134), Los Angeles ($241,149), and New York ($233,455). 

Rank	Metro Area	Median Household Income	Median Home Sales Price, April 2025	Income Needed With 20% Down	Income Needed With 0% Down
1	Detroit, MI	$72,574	$195,000	$60,474	$71,326
2	Cleveland, OH	$67,586	$235,000	$69,150	$82,229
3	Pittsburgh, PA	$72,532	$250,000	$71,217	$85,130
4	Louisville, KY	$68,921	$273,000	$79,555	$94,748
5	Cincinnati, OH	$77,844	$294,000	$80,336	$96,698
6	St. Louis, MO	$78,224	$273,000	$82,295	$97,488
7	Buffalo, NY	$69,861	$255,000	$82,313	$96,504
8	Indianapolis, IN	$77,947	$310,000	$84,206	$101,458
9	Memphis, TN	$64,025	$295,000	$84,719	$101,136
10	Oklahoma City, OK	$69,895	$268,000	$84,904	$99,818
11	Birmingham, AL	$69,284	$315,000	$85,429	$102,959
12	Philadelphia, PA	$86,867	$290,000	$87,731	$103,870
13	Kansas City, MO	$79,842	$330,000	$94,982	$113,347
14	Columbus, OH	$77,390	$337,000	$95,177	$113,932
15	Virginia Beach, VA	$79,325	$355,000	$95,701	$115,458
16	San Antonio, TX	$73,195	$310,000	$98,609	$115,861
17	Grand Rapids, MI	$77,979	$345,000	$99,293	$118,493
18	Milwaukee, WI	$77,006	$347,000	$100,075	$119,386
19	Richmond, VA	$84,332	$400,000	$106,909	$129,170
20	Charlotte, NC	$81,262	$409,000	$107,912	$130,673
21	Atlanta, GA	$86,505	$400,000	$109,760	$132,021
22	Baltimore, MD	$94,289	$395,000	$111,649	$133,631
23	Fresno, CA	$71,140	$418,000	$112,172	$135,434
24	Las Vegas, NV	$75,065	$449,000	$113,839	$138,826
25	Houston, TX	$79,463	$340,000	$115,194	$134,115
26	Jacksonville, FL	$77,044	$370,000	$115,831	$136,422
27	Tampa, FL	$72,743	$370,000	$116,256	$136,847
28	Minneapolis, MN	$95,102	$400,000	$117,547	$139,808
29	Chicago, IL	$87,071	$370,000	$118,197	$138,788
30	Raleigh, NC	$96,096	$441,000	$120,069	$144,612
31	Phoenix, AZ	$85,700	$458,000	$125,174	$150,662
32	Nashville, TN	$84,685	$470,000	$126,705	$152,861
33	Orlando, FL	$77,378	$408,000	$128,233	$150,939
34	Salt Lake City, UT	$94,409	$530,000	$136,876	$166,371
35	Dallas, TX	$86,860	$425,000	$138,791	$162,443
36	Austin, TX	$98,508	$450,000	$139,062	$164,105
37	Providence, RI	$83,330	$485,000	$142,700	$169,690
38	Portland, OR	$94,925	$559,000	$147,663	$178,772
39	Sacramento, CA	$94,992	$590,000	$159,312	$192,146
40	Riverside, CA	$87,843	$596,000	$160,783	$193,951
41	Washington, DC	$121,469	$600,000	$161,911	$195,302
42	Denver, CO	$103,055	$600,000	$168,958	$202,349
43	Miami, FL	$76,271	$590,000	$188,008	$220,842
44	Boston, MA	$110,697	$750,000	$215,387	$257,125
45	Seattle, WA	$110,744	$850,000	$230,379	$277,683
46	New York, NY	$95,220	$765,000	$233,455	$276,029
47	Los Angeles, CA	$91,960	$905,000	$241,149	$291,514
48	San Diego, CA	$103,674	$920,000	$246,134	$297,333
49	San Francisco, CA	$127,792	$1,550,000	$415,871	$502,130
50	San Jose, CA	$153,202	$1,700,000	$458,297	$552,904

*Using the 28% rule and typical state homeowners insurance and property tax rates.

Homeowners Insurance and Property Taxes Play a Significant Role in Affordability

Home insurance plays a large and increasingly important role in affordability across the country. Annual homeowners insurance on a median-priced home ranges from a paltry $834 in West Virginia (about $70 per month) to a jaw-dropping $7,392 in Florida (almost $620 monthly), a difference of more than 8x. 

This can have a dramatic effect on required salaries in states with similarly priced homes. For example, Delaware and Texas are fairly similar in terms of their median home price, at $359,000 and $348,000, respectively. However, homeowners insurance in Delaware costs just $1,154 annually, compared to $4,697 per year in Texas. 

As a result of this and other factors, the required income to buy a typical home with 20% down rises from $90,446 in Delaware to $111,144 in Texas. 

Property taxes are also a significant factor in determining affordability, varying widely depending on how a given state or municipality chooses to fund itself. 

An excellent example of this would be the difference between high-tax New Jersey and low-tax Utah. Utah’s median home price is actually higher than New Jersey’s ($563,000 vs. $549,000), yet property taxes there are less than a quarter of those in the Garden State ($2,646 vs $9,717).

Naturally, this creates a substantial gap in the salaries required to affordably own the typical home. Utah’s level of $143,275 is over $20,000 less than New Jersey’s ($164,731), despite median home prices being higher by about that same amount.

Rank	State	Median Sale Price	Annual Homeowners Insurance	Annual Property Tax	Income Needed With 20% Down*
1	Iowa	$239,000	$1,886	$2,940	$70,436
2	West Virginia	$248,000	$834	$1,190	$62,436
3	Louisiana	$251,000	$3,468	$1,381	$73,190
4	Oklahoma	$251,000	$3,868	$1,933	$76,590
5	Ohio	$254,000	$1,173	$3,327	$72,613
6	Kentucky	$266,000	$3,104	$1,942	$77,234
7	Arkansas	$267,000	$2,762	$1,415	$74,352
8	Indiana	$267,000	$1,547	$2,056	$72,302
9	Mississippi	$268,000	$3,082	$1,554	$76,217
10	Michigan	$270,000	$1,932	$3,105	$78,094
11	Missouri	$271,000	$2,204	$2,385	$76,715
12	Kansas	$289,000	$4,253	$3,439	$91,805
13	Alabama	$290,000	$2,926	$1,044	$78,734
14	Nebraska	$299,000	$6,077	$4,276	$103,532
15	North Dakota	$299,000	$2,690	$2,811	$86,204
16	Pennsylvania	$306,000	$1,280	$3,641	$85,694
17	Illinois	$313,000	$2,242	$5,728	$98,140
18	South Dakota	$317,000	$3,282	$3,138	$93,495
19	Wisconsin	$329,000	$1,372	$4,113	$92,824
20	Texas	$348,000	$4,697	$4,733	$111,144
21	Delaware	$359,000	$1,154	$1,795	$90,446
22	New Mexico	$368,000	$2,705	$2,245	$99,596
23	Minnesota	$369,000	$3,325	$3,653	$107,062
24	Georgia	$381,000	$2,463	$2,934	$104,085
25	South Carolina	$381,000	$3,254	$1,791	$102,828
26	North Carolina	$382,000	$2,610	$2,368	$102,816
27	Alaska	$384,000	$1,206	$3,494	$102,266
28	Tennessee	$392,000	$3,297	$1,921	$105,895
29	Maine	$408,000	$1,593	$3,835	$110,207
30	Florida	$410,000	$7,392	$3,034	$128,505
31	Wyoming	$414,000	$1,802	$2,277	$106,727
32	Vermont	$439,000	$1,228	$6,234	$124,372
33	Arizona	$441,000	$3,343	$1,940	$117,037
34	Maryland	$449,000	$2,501	$4,041	$123,313
35	Connecticut	$451,000	$2,508	$6,675	$133,189
36	Nevada	$467,000	$1,680	$2,288	$118,128
37	Idaho	$474,000	$2,165	$2,275	$121,371
38	Virginia	$474,000	$2,647	$3,650	$128,001
39	New Hampshire	$496,000	$1,708	$6,994	$141,489
40	Rhode Island	$496,000	$3,872	$5,208	$142,841
41	Oregon	$517,000	$1,834	$4,033	$136,037
42	Montana	$529,000	$4,934	$3,174	$146,714
43	New Jersey	$549,000	$2,189	$9,717	$164,731
44	Utah	$563,000	$2,380	$2,646	$143,275
45	New York	$573,000	$3,568	$7,220	$166,080
46	Colorado	$623,000	$6,816	$3,115	$174,149
47	Massachusetts	$658,000	$3,694	$6,383	$182,460
48	Washington	$663,000	$3,353	$4,973	$177,319
49	Hawaii	$770,000	$3,450	$2,464	$192,525
50	California	$856,000	$4,776	$5,992	$229,008

*Using the 28% rule with 20% down payment and typical state homeowners insurance and property tax rates.

The Impact of Maintenance Costs on Home Prices

Although not factored into our affordability calculations, it’s also vital for homeowners and would-be buyers to remember the cost of maintaining their property. Generally, it costs 1% to 4% of the home price to maintain a home. For a U.S. average median home sale price of $438,000, this would be $4,380 to $17,520.

Homeowners should expect these upkeep costs to be the highest in California (roughly $8,000 to $32,000 for a median-priced home) and Hawaii (about $7,500 to $30,000), as well as cities such as San Jose, California (roughly $15,000 to 60,000) and San Francisco (about $14,000 to $56,000). 

City	Median Home Sales Price	Annual Expected Maintenance Costs*
San Jose, CA	$1,700,000	$17,000 to $68,000
San Francisco, CA	$1,550,000	$15,500 to $62,000
San Diego, CA	$920,000	$9,200 to $36,800
Los Angeles, CA	$905,000	$9,050 to $36,200
Seattle, WA	$850,000	$8,500 to $34,000

*Calculated using 1% to 4% of median home sales price.

State	Median Home Sales Price	Annual Expected Maintenance Costs*
California	$856,000	$8,560 to $34,240
Hawaii	$770,000	$7,700 to $30,800
Washington	$663,000	$6,630 to $26,520
Massachusetts	$658,000	$6,580 to $26,320
Colorado	$623,000	$6,230 to $24,920

*Calculated using 1% to 4% of median home sales price.

How Much House Can I Afford?

How Much House Can I Afford With a 50K Salary?

How Much House Can I Afford With a 55K Salary?

How Much House Can I Afford With a 60K Salary?

How Much House Can I Afford With a 65K Salary?

How Much House Can I Afford With a 70K Salary?

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How Much House Can I Afford With a 110K Salary?

How Much House Can I Afford With a 120K Salary?

How Much House Can I Afford With a 130K Salary?

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How Much House Can I Afford With a 180K Salary?

How Much House Can I Afford With a 190K Salary?

How Much House Can I Afford With a 200K Salary?

How Much House Can I Afford With a 250K Salary?

Methodology

Data sources for this study include the U.S. Census Bureau, the American Community Survey, the Federal Reserve, the U.S. Bureau of Economic Research, Redfin, Bankrate, Freddie Mac, and The Tax Foundation. Data analysis took place in April and May 2025.  Where data points were unavailable for specific geographic resolutions, data from higher resolutions was used as an estimate. 

About Clever

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