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 , /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 TestUsing 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 MedianListing Price Monthly withTax & Ins. Annual MortgagePmt + Tax & Ins. 2025 MedianHH Income Share ofIncome 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 ReachOn 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 MedianListing Price Monthly withTax & Ins. Annual MortgagePmt + Tax & Ins. 2025 MedianHH Income Share ofIncome 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 MedianListing Price MonthlyMortgage Pmt+ Tax & Ins. 2025 MedianHH Income Share ofIncome 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, [email protected] SOURCE Realtor.com WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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

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