Affordable Homes Still Available in These 6 Major U.S. Cities

In a recent report by Clever Real Estate, it was revealed that only six major U.S. cities have median home prices that a household making the local median income could afford. The report compared the income needed to afford a home in major cities to the actual income earned by the typical household.

According to the report, a home is considered affordable if it fulfills the popular 28/36 rule, which advises buyers to spend a maximum of 28% of their monthly income on housing, plus an extra 8% paying other debts like credit card or auto bills. Even with a 20% down payment, the standard homebuyer making median local pay would not be able to afford a home listed at a middle-of-the-market price in 44 out of 50 major cities.

The high home mortgage rates are also a contributing factor that could prevent sellers from listing homes and buyers from purchasing them. However, there is some good news for residents of Pittsburgh, Pennsylvania; Cleveland, Ohio; St. Louis, Missouri; Memphis, Tennessee; Indianapolis, Indiana; and Birmingham, Alabama. These are the six cities where median earners can afford homes based on their actual income and the local median home sale prices.

This report sheds light on the challenges faced by many Americans when it comes to homeownership and highlights the disparities in housing affordability across different cities in the United States.