Affordability of housing has always been a continuous concern for governments and people across the world. In a survey of 95 markets in 8 countries regarding housing affordability, there is a common point at least: the high prices that are hard to bear. However, among the top ten most affordable housing markets, eight are in cities in the United States.
According to a report by the Chapman University’s Center for Demographics and Policy in May this year, the median prices of homes in the third quarter of 2024 were compared with the median incomes across these markets.
For over two decades, the “Demographia International Housing Affordability Report” by the Chapman Center for Demographics and Policy has been a gold standard for people concerned about housing costs.
In this research, if the median home price in a market does not exceed three times the median income of the area, then that market is considered “affordable”. This year, a new category of “impossibly unaffordable” was introduced, where a city is deemed impossible for a moderate-income family to afford housing when the median home price is 9 times or more the median income. The study found that out of the analyzed markets, 12 were classified as “unaffordable” with none being considered “affordable”.
Based on this survey, the most affordable housing market globally is in Pittsburgh, Pennsylvania, with the median home price being 3.2 times the median income of the area. However, the study still considers Pittsburgh’s home prices as “slightly high”.
Internationally, Edmonton in Canada, Sheffield in the UK, as well as the Middlesbrough & Durham area also made it to the top ten.
Here are the top ten most affordable housing markets and their price-to-income ratio, with eight cities from the United States:
1. Pittsburgh, Pennsylvania, USA: 3.2
2. Cleveland, Ohio, USA: 3.3
3. St. Louis, Missouri, USA: 3.5
4. Rochester, New York, USA: 3.6
5. Edmonton, Canada: 3.7 (tied)
5. Middlesbrough & Durham, UK: 3.7 (tied)
5. Oklahoma City, USA: 3.7 (tied)
5. Omaha, Nebraska, USA: 3.7 (tied)
9. Sheffield, UK: 3.8
10. Cincinnati, Ohio, USA: 3.9 (tied)
10. Detroit, Michigan, USA: 3.9 (tied)
According to the National Association of Realtors (NAR), the median price of existing homes in the US reached a historic high of $435,300 in June, a 2% increase from the same period last year and the 24th consecutive month of year-over-year increase.
Analysis from NAR and Realtor.com reveals that if home list prices could reflect what different income levels of buyers can afford, then a US household with an annual income of $75,000 should be able to afford 48.1% of available homes.
However, as of May 2025, a family with an annual income of $75,000 could only afford 21.2% of homes. On the other hand, buyers with an income of $250,000 or more can afford at least 80% of available homes.
“For many first-time homebuyers, navigating the current real estate market still feels like window shopping,” said Nadia Evangelou, Director of Research at NAR. “List prices do not align with the budgets of first-time buyers.”
The survey by the Chapman Center for Demographics and Policy also shows that in California’s four major metropolitan areas – San Jose, Los Angeles, San Francisco, and San Diego – buying a home is “truly unaffordable”. Honolulu’s median home price is 10 times the median income, also making it one of the top ten unaffordable housing markets.