Recent analysis reveals that the financial requirements for
homeownership in America have experienced a dramatic surge since 2017, with the necessary income more than doubling. Current homebuyers face average monthly payments of $2,500, while residents in major coastal metropolitan areas like San Francisco, Los Angeles, and San Diego must budget over $5,000 monthly.
The data, compiled by Home Sweet Home for the first quarter of 2025, demonstrates significant regional variations in housing affordability across 50 major U.S. cities. Silicon Valley’s San Jose tops the list as the most expensive market, requiring an annual income of $501,760 to purchase a median-priced home of $2,020,000. The city’s robust tech sector, hosting more than 6,600 technology companies, continues to drive demand in an already constrained market. This is evidenced by the fact that 71% of San Jose home listings in April 2025 sold above their asking price.
San Francisco follows as the second most expensive market, where homebuyers need to earn $338,427 annually to afford a median-priced home of $1,320,000. The ongoing artificial intelligence boom has intensified competition in the Bay Area’s real estate market, pushing required salaries to more than triple the national average.
Miami exemplifies the pandemic’s lasting impact on housing markets, with required income now at $165,818, a dramatic increase from approximately $70,000 in early 2017. This surge reflects the significant migration patterns that emerged during the COVID-19 crisis.
The calculations assume a 30-year fixed-rate mortgage at 6.83% with a 20% down payment, including principal, interest, taxes, and insurance payments. On a national level, homebuyers need to earn $108,486 to afford a median-priced home of $402,300, resulting in monthly payments of $2,531.
The most affordable markets are concentrated in the Midwest and Northeast. Cleveland, Pittsburgh, and Detroit stand out as the most accessible markets, with required incomes below $73,000 and median home prices at least one-third below the national average. In Cleveland, a salary of $63,611 is sufficient to purchase a
median-priced home of $213,200, while Pittsburgh requires $64,071 for a $225,400 home.
Other major metropolitan areas fall between these extremes. Seattle requires an annual income of $198,233 for a median home price of $772,900, while Boston homebuyers need $194,593 for a $734,000 property. The Washington, D.C. market demands $166,814 in annual income for a $630,900 home.
The West Coast continues to dominate the high-end market, with San Diego requiring $257,190 in annual income for a median-priced home of $1,036,500, and Los Angeles demanding $218,483 for an $862,600 property. The New York City metropolitan area also maintains its position among the most expensive markets, requiring $202,150 in annual income for a $725,300 home.
These figures highlight the growing disparity in housing affordability across U.S. cities, with coastal and tech-hub markets requiring significantly higher incomes than interior regions. The combination of rising home prices, elevated mortgage rates, and limited housing supply continues to shape the landscape of American homeownership, creating distinct geographic patterns of accessibility and exclusion in the residential real estate market.