In this January edition of the RealtyHop Housing Affordability Index, we examine what American households across the 100 largest cities need to spend on housing to find out:
Is homeownership affordable, or even possible, for the average American family?
As 2026 begins, inflation remains a factor in contributing to the affordability crisis in America. Even though income growth increased slightly, it did not outpace increases in inflation. The cost of groceries and gasoline continue to rise, with many seeing their insurance premiums to increase in the new year. As always, those thinking about buying should consult with local market experts to understand specific pricing in their area.
Key Findings:
- Households in 67 out of the 100 major cities we analyzed would have to spend over 30% of their annual household income to own a median home in the area.
- For 11 cities in the index, homeowners must spend over 50% of their income on homeownership costs, indicating severe unaffordability.
- This month, Toledo, OH remains the most affordable housing market.
- California remains unaffordable for average Americans. 7 of the 10 least affordable markets are located in California, with Anaheim breaking into the top 5.
- Buyers in Cleveland, OH, Toledo, OH, and Detroit, MI remain the only three cities in the study where monthly homeownership payments sit below $1,000.
The 5 Least Affordable Housing Markets
1. Los Angeles, CA
Los Angeles remains the country’s least affordable housing market. The city saw a slight decrease in the share of income needed to be allocated towards housing, and families can now expect to spend $5,958.15 monthly for a home with the median list price of $1,099,000.
2. Irvine, CA
Irvine is the second least affordable U.S. city in our rankings this month. Households with a median income can expect to spend a staggering $9,371.90 each month on mortgage payments and property taxes, equating to 79.05% of the annual household income.Â
3. Miami, FL
Miami remained the third least affordable housing market this month. Households making the median income of $65,169 will need to spend 71.89% of it in order to own a home.
4. New York, NY
New York City held onto its spot as the fourth least affordable city, with the list price decreasing slightly from $890,000 to $880,000. Potential buyers should expect to spend $4,796.42 monthly on homeownership costs.Â
5. Anaheim, CA
Anaheim moved into the top 5 least affordable housing market. With a median list price of $938,495, an average family in Anaheim should expect to direct 61.68% of their income towards owning.Â
The 5 Most Affordable Housing Markets
1. Toledo, OH
Toledo continues to rank as the most affordable city in the U.S. Local families making the median income of $52,157 should expect to spend $747.59 on their monthly mortgage payments and property taxes.Â
2. Detroit, MIÂ
Detroit remains one of the most affordable housing markets in the country. With a median list price of $105,000, households only need to allocate $635.29 a month on homeownership expenses.
3. Cleveland, OH
Cleveland remains the third most affordable housing market this month. Prospective buyers need to spend 22.00% of their income on homeownership costs.Â
4. Kansas City, MOÂ
Kansas City became the 4th most affordable city on our list this month. The median list price sits at $240,000 and households can now expect to spend $1,400.41 monthly on mortgage payments and property taxes.Â
5. St. Louis, MOÂ
St. Louis moved down one spot to the 5th most affordable city. Homeowners would need to direct 22.72% of their income towards owning a home with the median price of $200,000.Â
Housing Markets to Watch
The following housing markets witnessed significant changes this month:
St. Petersburg, FL
St. Petersburg showed the biggest change from last month moving up 9 spots to become the 23rd least affordable city. With milder weather year round, the city is seeing more residential demand, but with little supply to offer, affordability has become a problem. With the median household income being $80,233 and the monthly estimated mortgage payment being $2,631.25, homeowners in St. Petersburg can expect to spend 39.35% of their income on owning a home.
San Diego, CA
San Diego moved up to become the 10th least affordable city on our list. Homebuyers can expect to spend $4,865.80 a month on mortgages. The San Diego Unified District is trying to make the city more affordable as they advanced two major workforce housing projects. This would help housing for educators in San Diego school districts, while also easing the market strain caused by high housing demand.
Atlanta, GA
Housing affordability improved in Atlanta, making it the 71st most affordable market in the country, 4 spots better than last month. The median home price this month is $375,000, and local families would have to spend 28.68% of their annual household income on housing.Â
Methodology
The RealtyHop Housing Affordability Index analyzes proprietary and ACS Census data to provide an index of housing affordability and homeownership burden across the 100 most populous cities in the country. Median home prices are calculated using over 800,000 listings in the RealtyHop database over the month before publication.
To calculate the index, the following statistics are used:
1) Projected median household income based on Census ACS and BEA data
2) Median for-sale home listing prices via RealtyHop data
3) Local property taxes via ACS Census data
4) Mortgage expenses, assuming a 30-year mortgage, a 6.18% mortgage interest rate based on reported weekly averages in the past four weeks, and a 20% down payment.
See below for previous RealtyHop Housing Affordability Studies:
