Homeownership remains a central part of the American dream — but today’s housing market presents real challenges for many families and first-time buyers. According to the latest data from Realtor.com, the income required to buy a median-priced home varies widely across the country, creating significant differences in affordability depending on where you live.
Understanding Affordability: Why It Matters
When we talk about housing affordability, we’re referring to how much income a household needs to reasonably buy a home without being financially stretched. Experts often use a general rule of thumb: housing costs should not exceed 30% of one’s gross income. But in many U.S. markets today, buyers must spend far more than that — and in some cases, well beyond what a typical household earns.
Nationally, the income required to afford a median-priced home is significantly higher than it once was — stretching budgets and slowing down the path to ownership, especially for first-time buyers who may have less savings for down payments.
Top Affordable Metros: Where You Can Buy a Home on a Modest Income
According to the Realtor.com report, several mid-sized and Midwestern metro areas stand out as the most affordable places in the U.S. for homebuyers in 2025. In these communities, the annual income needed to afford a typical home falls well below national averages, making them attractive options for families and individuals seeking ownership.
Here’s a look at metros where buying a home is most within reach:
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Pittsburgh, PA — Often highlighted as one of the most affordable large markets in the U.S., Pittsburgh tops many lists because of its modest home prices and relatively stable income requirements for buyers.
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Cleveland, OH — A strong affordability leader in the Midwest, Cleveland continues to offer lower prices and more accessible entry points for new buyers.
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Detroit, MI — Detroit’s housing market provides one of the lowest thresholds of income needed to buy, offering opportunities for buyers who might struggle in more expensive regions.
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Buffalo, NY, St. Louis, MO, Birmingham, AL, Louisville, KY, Indianapolis, IN, Oklahoma City, OK, and Memphis, TN are also among the metros where buyers can reasonably afford homes on modest incomes relative to the cost of housing.
In many of these areas, the typical minimum income needed to afford a home falls under $85,000 per year, considerably lower than in high-cost coastal metros.
What’s Driving These Differences?
Several key factors help explain why some markets are more affordable:
1. Lower Median Home Prices
Many affordable metros have median home prices that are significantly below the national median, making monthly mortgage payments more manageable for buyers.
2. Stable Income-to-Price Ratios
In areas like Pittsburgh and Cleveland, local household incomes are more aligned with housing costs, reducing the percentage of income that must go toward mortgage payments.
3. Regional Market Dynamics
Midwestern and some Southern cities tend to have more balanced inventory, slower price growth, and economic conditions that support housing affordability compared with coastal markets where demand and prices remain high.
The Bigger Picture: Still a Challenge for Many Buyers
While these affordable metro areas provide opportunities, homeownership is still out of reach for many Americans. Across the country:
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Only a minority of homes are considered affordable to typical households by traditional benchmarks.
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Some markets require households to spend well above the recommended 30% of income on housing costs.
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In expensive metros — particularly on the West and East Coasts — the income needed to buy a home can be 2–3 times the national median wage.
These affordability gaps underscore the continued importance of strategic solutions that help buyers achieve homeownership — whether through tailored financing options, down payment assistance programs, or community-focused initiatives.
Why This Matters for First Key Fund
At First Key Fund, our mission is to support first-time and income-constrained buyers on the path to homeownership. Understanding where affordability still exists — and where support is most needed — enables us to better serve families pursuing stability, investment, and a place to call home.
By highlighting metro areas with more accessible housing, we’re shining a light on opportunities that align with our vision of making homeownership equitable, sustainable, and achievable for all. If you’re considering buying your first home or exploring areas where your dollar goes further, these markets may offer promising possibilities.