Get All Access for $5/mo

There Are Only 6 Major Cities Left in the U.S. With 'Affordable' Homes Matching Median Incomes — Here's the List Homeownership is not affordable for the typical household in 44 of the 50 largest cities in the U.S.

By Sherin Shibu

Key Takeaways

  • An April report from Clever Real Estate found the six U.S. cities with median home prices that match, or are below, median income.
  • Pittsburgh, Pennsylvania leads the list.

Only six major U.S. cities have median home prices that a household making the local median income could afford.

An April report from Clever Real Estate compared the income needed to afford a home in major U.S. cities to the actual income earned by the typical household.

The report considered a home affordable to a particular buyer if it fulfilled 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 debt 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.

Home mortgage rates are also high right now, which could prevent sellers from listing homes and buyers from purchasing them.

Related: The 'Silver Tsunami' Meets 'Golden Handcuffs' as Past Low Mortgage Rates Lock in Homeowners — Whether They Like It or Not

Here are the six cities with homes that median earners can afford.

1. Pittsburgh, Pennsylvania

Pittsburg, Pennsylvania. Credit: Getty Images

Actual Income: $70,607

Income Needed To Afford The Median Home: $59,919

Local Median Home Sale Price: $199,573

2. Cleveland, Ohio

Actual Income: $65,198

Income Needed To Afford The Median Home: $56,378

Local Median Home Sale Price: $182,652

3. St. Louis, Missouri

St. Louis, Missouri. Credit: Getty Images

Actual Income: $74,531

Income Needed To Afford The Median Home: $66,743

Local Median Home Sale Price: $225,674

4. Memphis, Tennessee

Actual Income: $64,008

Income Needed To Afford The Median Home: $61,659

Local Median Home Sale Price: $213,929

5. Indianapolis, Indiana

Actual Income: $75,824

Income Needed To Afford The Median Home: $73,398

Local Median Home Sale Price: $257,584

6. Birmingham, Alabama

Birmingham, Alabama. Credit: Getty Images

Actual Income: $67,242

Income Needed To Afford The Median Home: $65,216

Local Median Home Sale Price: $235,212

Sherin Shibu

Entrepreneur Staff

News Reporter

Sherin Shibu is a business news reporter at Entrepreneur.com. She previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. Her areas of coverage encompass tech, business, strategy, finance, and even space. She is a Columbia University graduate.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Growing a Business

5 Effective Strategies to Boost Your Business's Online Presence

Boosting your online presence in 2025 is the key to success for businesses looking to grow. Working on your branding and reputation management is important to drive more sales and improve conversion.

Marketing

He Pitched His First Business at 12 and Sold a Company for 8 Figures When He Was 23. Here's This Gen Z Marketing Expert's Next Big Move.

Griffin Haddrill built a marketing empire working with artists like Justin Bieber and Lil Nas X. Learn how he tapped into Gen Z's digital culture and turned viral campaigns into a business model.

Business News

Apple Is Adding ChatGPT to iPhones This Week. Here's How It Works.

ChatGPT will take over questions that Siri can't answer.

Science & Technology

Use This Framework to Successfully Integrate AI Into Your Business Operations

Here's how to ensure both innovation and compliance when using AI in your organization.

Leadership

As a Leader, Take These 5 Steps to Bridge the Gap Between Innovation and Execution

Companies that want to turn ideas into action must align their people and listen to their customers.