In this July 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?

With summer in full swing, those on the market to purchase property continue to face unaffordable conditions. While interest rates decreased slightly from last month, housing prices increased across most of the major markets nationwide. Prospective buyers must evaluate their budgets to understand how much home they can afford to purchase in their area. As always, those thinking about buying should consult with local market experts to understand pricing in their area.

Key Findings

• Homebuyers in 86 out of the 100 major cities we analyzed would have to spend over 30% of their annual income on homeownership – that’s five more than last month.
• In the 25 most unaffordable housing markets nationwide, homeowners spend at least 46% of their income on homeownership costs.
• California remains unaffordable for average Americans. Seven of the ten least affordable markets are in California.
• Two of the least affordable housing markets — New York, NY, and Newark, NJ — became less affordable this month.
• The median home price increased in four of the most affordable housing markets: Detroit, MI, Toledo, OH, St. Louis, MO, and Kansas City, MO.

The 5 Least Affordable Housing Markets

1. Los Angeles, CA

Los Angeles remains the country’s least affordable housing market. The median list price slightly decreased to $1,199,000, and families can now expect to spend 98.52% of their income on monthly housing costs.

2. Irvine, CA

Irvine is the second least affordable housing market. Households with a median income can expect to spend $9,964.33 monthly on mortgage payments and property taxes. That’s 88.91% of their income.

3. Miami, FL

Miami remained the third least affordable housing market this month. Households with a median income of $61,604 will need to direct 80.55% of it toward the cost of homeownership.

4. New York, NY

New York City held onto its spot as the fourth least affordable housing market. The median list price increased to $899,000, and potential buyers can expect to spend $5,157.73 monthly on homeownership.

5. Newark, NJ

Newark remained the fifth least affordable housing market. The median list price of a home increased by 2.28% to $449,000 this month. Households can expect to direct 71.54% of their income toward housing.

The 5 Most Affordable Housing Markets

1. Detroit, MI

Detroit is still the most affordable housing market in the nation. The median list price increased to $109,900, and households with a median income can expect to spend 20.36% of it on housing each month.

2. Toledo, OH

Toledo held onto its spot as the second most affordable housing market. Households with a median income of $49,304 should expect to spend $879.09 on their monthly mortgage payments and property taxes.

3. St. Louis, MO

St. Louis remains the third most affordable housing market this month. The median list price increased to $207,000, and households will direct $1,248.15 toward their monthly housing costs.

4. Cleveland, OH

Cleveland moved up one spot in the rankings to become the fourth most affordable housing market this month. The median list price decreased to $139,000, and prospective buyers can expect to direct 26.45% of their income toward the cost of homeownership.

5. Kansas City, OH

Kansas City dropped one spot in the rankings to become the fifth most affordable housing market. The median list price increased to $255,000, and households can now expect to spend $1,561.04 monthly on mortgage payments and property taxes.

Housing Markets to Watch

The following housing markets witnessed significant changes in July 2025.

Orlando, FL

Orlando jumped eight spots in the rankings to become the 49th least affordable housing market this month. The median list price increased by 2.88% to $389,900, and households can now expect to spend 38.60% of their income on housing.

Arlington, VA

Arlington became more affordable for prospective buyers this month, dropping to the 36th spot in our ranking. Households with a median income of $78,000 can expect to spend $2,781.59 monthly on mortgage payments and property taxes.

Cincinnati, OH

Cincinnati homebuyers can expect to spend more money this month on housing. The median list price increased $269,900, and the city moved seven spots in the rankings to become the 48th least affordable housing market.

Methodology

The RealtyHop Housing Affordability Index: July 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 6.73% 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: June 2025
• RealtyHop Housing Affordability Index: May 2025
• RealtyHop Housing Affordability Index: April 2025

Full Data for July 2025

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