The American dream of homeownership is facing a stark reality check. According to the Realtor.com® April 2025 Inventory Report, the income required to purchase a home in the United States has rocketed by a staggering 70% since 2019, creating a housing affordability crisis that spans from coast to coast.
For perspective, the typical American household earned just over $80,600 annually in 2023; more than 40% short of what’s needed to afford the average home today.
This disconnect has created dramatically different housing markets across the country, where some locations require nearly four times the income of others, and other spots are moving toward affordability.
Washington, D.C.: the highest bar to entry
The nation’s capital is the most expensive housing market, requiring a whopping $240,009 annual income to afford a typical three-bedroom single-family home.
Even professionals with six-figure salaries find themselves stretched thin in this political hub.
Honolulu, Hawaii: paradise at a premium
Honolulu demands an annual income of $235,638 to afford a median-priced home.
The combination of limited land, high construction costs, and the desirability of island living creates one of the nation’s most prohibitive housing markets.
Las Vegas, Nevada: no longer a bargain bet
Once considered an affordable alternative to California, Las Vegas now requires a salary of $125,654 to purchase a median-priced home.
This represents an alarming 86.5% increase since 2019, making it the third-highest income jump among major metros.
Denver, Colorado: mountain high prices
The Mile High City continues to attract newcomers at a steep price.
Homebuyers need approximately $130,000 in annual income to afford Denver’s median home price, putting homeownership out of reach for many essential workers and middle-class families.
San Francisco, California: still a tech worker’s territory
Unsurprisingly, San Francisco remains among the nation’s most expensive markets, requiring an income of approximately $198,000 to afford a typical home.
While still prohibitively expensive, the city has actually seen smaller percentage increases than many other metros since 2019.
Atlanta, Georgia: Southern hospitality with a price tag
Atlanta’s booming job market has brought corresponding housing pressures.
Buyers now need around $105,000 in annual income to afford a typical home, representing a significant increase that has outpaced local wage growth.
Mississippi: Median income meets affordable housing market
The latest reports show that a median household income of $83,426 is enough to purchase a home in the land of bayous and barbecue.
While Mississippi has several rural counties that are losing residents due to the lack of career opportunities, Jackson and Meridian are home to regional healthcare facilities, giving residents access to stable employment.
The Zillow Home Values Index shows a median housing price of $80,544 in Jackson, MS, and $108,901 in Meridian.
Detroit, Michigan: Midwest affordability
Once the poster child for housing bargains, Detroit has seen its median housing price increase since pre-pandemic levels.
Today, buyers can find a median-priced home of $109,000 in the Motor City — still significantly below the national average.
West Virginia: the last bastion of affordability
For those looking beyond major metros, West Virginia offers the nation’s most accessible housing market. In most areas, a typical three-bedroom home requires an income of just $64,179.
According to the latest Zillow Home Values Index, the median housing price falls just below $170,000. This stark contrast highlights the geographic disparity in America’s housing affordability crisis.
The road ahead: interest rates and affordability
The future of housing affordability hinges significantly on interest rates.
With the typical household earning far less than what’s needed to buy an average home, the gap between housing dreams and financial reality widens across much of the country.
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