{"id":11659,"date":"2025-05-22T11:16:34","date_gmt":"2025-05-22T15:16:34","guid":{"rendered":"https:\/\/www.realtyhop.com\/blog\/?p=11659"},"modified":"2025-05-22T11:16:34","modified_gmt":"2025-05-22T15:16:34","slug":"affordability-index-may-2025","status":"publish","type":"post","link":"https:\/\/www.realtyhop.com\/blog\/affordability-index-may-2025\/","title":{"rendered":"RealtyHop Housing Affordability Index: May 2025"},"content":{"rendered":"
Is homeownership affordable or possible for the average American family?<\/span><\/i><\/p><\/blockquote>\n Homebuyers looking for property this season still face unaffordable housing prices in most major markets nationwide. In a majority of the 100 largest cities, households can expect to direct more than the recommended 30% of their budget toward housing. Interest rates remain high, making conditions less appealing for those looking to purchase property. As housing prices continue to climb, prospective buyers must evaluate their local market conditions to determine if now is the right time to buy. Los Angeles<\/span><\/a> remains the country\u2019s least affordable housing market. The median list price increased to $1,195,000, and families can expect to direct nearly all of their income, 98.15%, towards homeownership costs.<\/span><\/p>\n Irvine<\/span><\/a> is the second least affordable housing market this month. Households can expect to spend $9,902.72 of their monthly income on mortgage payments and property taxes for a home with a median list price of $1,680,000.<\/span><\/p>\n Miami<\/span><\/a> is still the third least affordable housing market. The median list price remained at $715,000, and households can expect to spend 82.48% of their income on homeownership costs.<\/span><\/p>\n New York City<\/span><\/a> held onto its spot as the fourth least affordable housing market this month. Households with a median income of $83,419 can expect to direct 72.58% of their income toward a mortgage and property taxes.<\/span><\/p>\n Newark<\/span><\/a> remains the fifth least affordable housing market. The median list price held steady at $440,000, and households will spend $2,946.67 on monthly housing costs.<\/span><\/p>\n Detroit<\/span><\/a> remains the most affordable housing market nationwide. The median list price increased to $105,000, and households can expect to spend 19.37% of their income on monthly mortgage payments and property taxes.<\/span><\/p>\n Toledo<\/span><\/a> held onto its spot as the second most affordable housing market. Households can expect to spend $818.23 monthly on a house with a median list price of $125,000.<\/span><\/p>\n St. Louis<\/span><\/a> is the third most affordable housing market this month. The median list price increased to $195,000, and households will now direct 24.51% of their monthly income to homeownership.<\/span><\/p>\n Kansas City<\/span><\/a> remained the fourth most affordable housing market. Households with a median income of $70,585 will spend $1,506.99 monthly on mortgage payments and property taxes.<\/span><\/p>\n Cleveland<\/span><\/a> made its way onto the most affordable housing markets list this month. The median list price slightly decreased to $139,900, and households can expect to spend 26.51% of their income on housing.<\/span><\/p>\n The following housing markets witnessed significant changes in May 2025.<\/p>\n Gilbert<\/span><\/a> dropped five spots in the rankings to become the 68th least affordable housing market this month. The median list price decreased to $610,000, and households can expect to direct 32.22% of their income toward housing costs.<\/p>\n
\nIn this May 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:<\/span><\/p>\n
\n<\/span><\/p>\nKey Findings<\/b><\/h2>\n
\n
The 5 Least Affordable Housing Markets<\/b><\/h2>\n
1. Los Angeles, CA<\/span><\/h3>\n
2. Irvine, CA<\/span><\/h3>\n
3. Miami, FL<\/span><\/h3>\n
4. New York, NY<\/span><\/h3>\n
5. Newark, NJ<\/span><\/h3>\n
The 5 Most Affordable Housing Markets<\/b><\/h2>\n
1. Detroit, MI<\/span><\/h3>\n
2. Toledo, OH<\/span><\/h3>\n
3. St. Louis, MO<\/span><\/h3>\n
4. Kansas City, MO<\/span><\/h3>\n
5. Cleveland, OH<\/span><\/h3>\n
Housing Markets to Watch<\/b><\/h2>\n
Gilbert, AZ<\/h3>\n
Greensboro, NC<\/h3>\n