home affordability – A new analysis shows many US cities require far higher income than households earn, with California dominating expensive markets.
A six-figure household income is becoming the practical price of entry for homeownership in many parts of the US, reshaping where Americans can realistically buy.
The gap is stark in a new analysis from Consumer Affairs. which found that the earnings needed to buy a home often do not match what people are actually making.. The report also highlights a mobility trend: some would-be buyers are leaving higher-cost regions—at times even relocating internationally—to find a more affordable lifestyle.
Americans’ starting point matters.. In 2024, the US Census Bureau put the median household income at $83,730.. Yet Consumer Affairs estimated that annual income of $120,796 is needed to buy a home, assuming a 10% down payment.. That required income changes from city to city. depending on local home prices and the income needed to make the purchase feasible.
The direction of that affordability pressure is visible in migration patterns.. The South saw an influx of Northerners looking for lower home prices and a lower overall cost of living.. The Midwest has also increasingly attracted buyers and movers due to its comparatively growing affordability, according to the report.
California stands out sharply on the cost front.. Consumer Affairs found that the state contains the most cities on the “highest salary required” list. with nine of the top 10 cities requiring a “handsome” income.. By contrast. cities that land on the lower end of required income are spread across the South and Midwest rather than clustering heavily in a single region.
The 10 least expensive cities to buy a home, measured by the income needed, begin with Huntington, West Virginia at the top of that affordability ranking: an income of $53,650 and a median home-sale price of $144,450. The city is listed as having a population of 44,942.
Youngstown, Ohio ranks second in affordability, requiring $59,433 in annual income alongside a median home-sale price of $90,000. Population in the report is listed at 59,123.
Next is Shreveport, Louisiana, where the required income is $63,030 and the median home-sale price is $185,000. The report lists a population of 176,578.
Flint, Michigan follows at number four, requiring $63,535 in income for a median home-sale price of $50,000, with a population listed at 79,735.
Peoria, Illinois is ranked fifth, with an income requirement of $65,486 and a median home-sale price of $145,900. The population figure provided is 111,696.
Binghamton, New York comes in sixth, requiring $65,989 in income and a median home-sale price of $175,000, with a population of 46,773.
Mobile, Alabama is seventh on the affordability list, requiring $66,241 in annual income and showing a median home-sale price of $232,250. The population is listed at 201,367.
Columbus, Georgia ranks eighth, with the report putting required income at $66,245 and a median home-sale price of $210,000. Population is listed as 201,830.
Fort Smith, Arkansas is ninth, requiring $67,064 in income and a median home-sale price of $196,000, with a population of 90,507.
Macon, Georgia is ranked 10th among the least expensive markets in this income-based comparison. The report lists an income requirement of $67,832 and a median home-sale price of $197,500, with a population of 157,056.
On the opposite end, the 10 cities requiring the most income to afford a home are led by San Jose, California. In that ranking, the income needed jumps to $501,012, alongside a median sales price of $1,489,000. The population figure reported is 997,368.
San Francisco, California follows at number two with an income requirement of $358,090 and a median sales price of $1,687,500. The report lists a population of 827,526.
Santa Cruz, California ranks third, requiring $354,973 in annual income and a median sales price of $1,352,000, with a population listed at 62,581.
Santa Maria, California is number four, with the analysis listing an income requirement of $305,535 and a median sales price of $617,500. Population is listed at 111,346.
Los Angeles, California ranks fifth, requiring $301,221 in income and a median sales price of $1,025,000, with a population listed at 3,878,704.
San Diego, California comes in sixth, with an income requirement of $293,618 and a median sales price of $950,000. The population listed in the report is 1,404,452.
San Luis Obispo, California is ranked seventh, requiring $280,591 in income and a median sales price of $1,102,500, with a population of 49,729.
Oxnard, California is eighth, requiring $276,805 in annual income and showing a median sales price of $797,500. The report lists a population of 200,616.
Salinas, California ranks ninth in the highest-income group, with required income of $262,403 and a median sales price of $699,000. Population is listed at 160,783.
Honolulu, Hawaii rounds out the top 10, requiring $255,280 in income with a median sales price of $605,000. The population figure provided is 344,967.
For buyers. the numbers underscore a basic affordability problem: when required income is far above median household earnings. home purchases stop being a “local decision” and become a “budget reset” question.. Even before interest-rate and mortgage-payment calculations are fully layered in. the core mismatch described by the report suggests many households would need either higher earnings. a larger down payment than assumed. or a shift to markets where prices are lower relative to income.
The regional migration described alongside these findings helps explain why affordability pressure can move like weather.. When Northerners relocate to the South for lower home prices and cost of living. or when buyers look toward the Midwest for affordability. housing demand changes across regions—potentially tightening some markets even as it eases strain elsewhere.
At the same time. California’s dominance at the top of the affordability chart shows how concentrated high-price pressures can be. even for large and economically diverse states.. With nine of the 10 most income-intensive cities in California. the report implies that within one state. the challenge is not just statewide—it is concentrated in specific metro areas where median sales prices are especially high.
For policymakers and lenders, this kind of comparison also highlights where financial access and housing supply debates can intersect.. When the income needed to buy a home rises well beyond what median households earn. the risk is not only slower homeownership but also a widening gap between those who can buy and those who must continue renting or move further out—choices that can have knock-on effects for local labor markets. commuting patterns. and household stability.
In the Misryoum Business News section. the clearest takeaway is that home affordability is increasingly shaped by a simple equation: local home prices and the assumed down payment requirements can drive a huge wedge between what households earn and what they need to qualify for purchase in many of the most competitive areas.
home affordability housing market US cities median household income mortgage down payment migration trends California home prices