In this March 2025 edition of the 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 possible for the average American family?
As spring rolls in and sellers place their homes on the market, buyers still face high list prices and interest rates. While the interest rate has slightly decreased since last month, most prospective buyers should still anticipate a rate above 6.5% this season. In most major cities nationwide, those on the market can also expect to spend more than 30% of their monthly income on housing costs. Those who purchase property this season should keep an active eye on the market and consult local professionals about their respective areas of interest.
Key Findings
- Homebuyers in 76 out of the 100 major cities we analyzed would have to spend over 30% of their annual income on homeownership – four less than last month.
- In the 25 most unaffordable housing markets nationwide, homeowners spend at least 43% of their income on homeownership costs.
- California remains unaffordable for average Americans. Six of the ten least affordable markets are in California.
- All five of the least affordable housing markets — Los Angeles, CA; Irvine, CA; Miami, FL; New York, NY; and Newark, NJ — became less affordable this month.
- The median home price increased in one of the most affordable housing markets: Detroit, MI.
The 5 Least Affordable Housing Markets
1. Los Angeles, CA
Los Angeles is still the country’s least affordable housing market. The median list price increased to $1,179,900, and homeowners can expect to spend 95.63% of their income on mortgage payments and property taxes.
2. Irvine, CA
Irvine also held onto its position this month. Households with a median income of $136,246 can expect to spend 84.14% of their income on mortgage payments and property taxes.
3. Miami, FL
Miami remains the third least affordable housing market. The median list price increased to $710,000, and households can expect to spend $4,218.47 monthly on homeownership costs.
4. New York, NY
New York City is the fourth least affordable housing market this month. With a median list price of $850,000, households with a median income of $83,770 can expect to spend 69.81% of their earnings on housing each month.
5. Newark, NJ
Newark held onto its spot as the fifth least affordable housing market. The median list price increased by 2.35% to $435,000, meaning households can expect to spend $2,898.73 on monthly housing costs.
The 5 Most Affordable Housing Markets
1. Detroit, MI
Detroit is, again, the most affordable housing market nationwide. With a median list price of $98,900, households can expect to direct 18.07% of their income toward mortgage payments and property taxes.
2. Toledo, OH
Toledo held onto its spot as the second most affordable housing market. Households with a median income of $49,951 can expect to spend $780.86 monthly on the cost of homeownership.
3. St. Louis, MO
St. Louis remains the third most affordable housing market this month. The median list price dropped 2.49% to $199,900, and households can expect to spend 24.88% of their income on housing costs.
4. Kansas City, MO
Kansas City became the fourth most affordable housing market. Households with a median income of $70,882 will spend 25.89% of their monthly income on mortgage payments and property taxes.
5. Buffalo, NY
Buffalo is still the fifth most affordable housing market this month. The median list price remained at $179,900, and households can expect to spend $1,090.94 monthly on the cost of homeownership.
Housing Markets to Watch
The following housing markets witnessed significant changes in March 2025.
Baltimore, MD
Baltimore jumped eight spots in the rankings to become the 86th least affordable housing market this month. The median list price decreased by 3.18% to $227,000, and households now allocate 27.59% of their income to housing.
North Las Vegas, NV
North Las Vegas became more affordable for prospective buyers this month, becoming the 58th least affordable market. Households with a median income of $80,680 can expect to spend $2,398.37 monthly on mortgage payments and property taxes.
Riverside, CA
Riverside buyers may find more buying opportunities this month in their budgets. The median list price dropped 3.05% to $639,900, and the city became the 18th least affordable market.
Methodology
The RealtyHop Housing Affordability Index: March 2025 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.
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 6.7225% 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:
- RealtyHop Housing Affordability Index: February 2025
- RealtyHop Housing Affordability Index: January 2025
- RealtyHop Housing Affordability Index: December 2024
