In 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:

Is homeownership affordable or possible for the average American family?

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.

Key Findings

• Homebuyers in 80 out of the 100 major cities we analyzed would have to spend over 30% of their annual income on homeownership – that’s three more than last month.
• In the 25 most unaffordable housing markets nationwide, homeowners spend at least 44% of their income on homeownership costs.
• California remains unaffordable for average Americans. Seven of the ten least affordable markets are in California.
• Three of the least affordable housing markets — Los Angeles, CA, Irvine, CA, and New York, NY — became less affordable this month.
• The median home price increased in three of the most affordable housing markets: Detroit, MI, Toledo, OH, and St. Louis, 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 increased to $1,195,000, and families can expect to direct nearly all of their income, 98.15%, towards homeownership costs.

2. Irvine, CA

Irvine 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.

3. Miami, FL

Miami 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.

4. New York, NY

New York City 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.

5. Newark, NJ

Newark 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.

The 5 Most Affordable Housing Markets

1. Detroit, MI

Detroit 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.

2. Toledo, OH

Toledo 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.

3. St. Louis, MO

St. Louis 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.

4. Kansas City, MO

Kansas City 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.

5. Cleveland, OH

Cleveland 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.

Housing Markets to Watch

The following housing markets witnessed significant changes in May 2025.

Gilbert, AZ

Gilbert 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.

Greensboro, NC

Greensboro became less affordable for prospective buyers this month, becoming the 65th least affordable market. Households with a median income of $61,622 can expect to spend $1,830.23 monthly on mortgage payments and property taxes.

Buffalo, NY

Buffalo became more expensive this month and became the 93rd least affordable housing market. The median list price increased 5.56% to $189,900, and households will direct 27.63% of their income toward homeownership.

Methodology

The RealtyHop Housing Affordability Index: May 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 6.785% 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: April 2025
• RealtyHop Housing Affordability Index: March 2025
• RealtyHop Housing Affordability Index: February 2025

Full Data for May 2025

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