Overview
Home affordability varies enormously by city. The income required to afford a median-priced home in San Jose, California is more than 3x the income needed for the same qualification in Memphis, Tennessee. Understanding the affordability landscape across markets helps you evaluate relocation options and set realistic expectations.
Home affordability by city -- 2025 median prices and income requirements
| City | Median Home Price (2025) | Income Required to Qualify (20% down, 7% rate) | Affordability Index |
|---|---|---|---|
| San Jose, CA | $1,400,000 | $200,000+ | Very unaffordable |
| San Francisco, CA | $1,200,000 | $175,000+ | Very unaffordable |
| Seattle, WA | $750,000 | $110,000+ | Unaffordable for median earner |
| Denver, CO | $575,000 | $85,000+ | Moderately unaffordable |
| Austin, TX | $500,000 | $73,000+ | Moderately unaffordable |
| Dallas, TX | $380,000 | $56,000+ | Somewhat accessible |
| Atlanta, GA | $360,000 | $53,000+ | Accessible |
| Memphis, TN | $210,000 | $31,000+ | Very accessible |
In 2024-2025, the national median home price to median household income ratio reached approximately 6:1 -- among the highest in recorded US history. The long-term historical average is approximately 4:1. This means the average American household can afford less house relative to their income than in almost any previous era.
Key Points
- Affordability varies more by city than almost any other factor in home buying
- San Francisco and San Jose require $175,000-$200,000+ annual income to qualify for a median-priced home
- Most affordable markets: Pittsburgh, Cleveland, Memphis, St. Louis, Indianapolis -- median homes under $250K
- Remote work has expanded geographic options -- enabling many buyers to access more affordable markets
- Local property tax rates also dramatically affect the total housing cost comparison across cities
Calculate Your Home Affordability
Use the home affordability calculator to see your maximum home price based on your income, debts, down payment, and current mortgage rates.
Calculate How Much Home You Can Afford
Enter your income, debts, and down payment to see your maximum affordable home price.