These cities have the most affordable housing for average incomes
Housing affordability is an ongoing issue that working-class renters and homebuyers have faced in recent years. Despite rising house prices and mortgage rates, online lender NetCredit highlighted two major cities offering a glimmer of hope for middle-income earners looking for affordable housing in 2025.
NetCredit has one analysis this week one of the 100 most populous cities in the US. The online lender filtered publicly available Zillow listings for single-family homes, townhomes, condominiums and co-ops. To identify the most affordable listings, NetCredit balanced local and national median household incomes American bank‘s threshold for affordable housing payments – 28% of monthly income. The national average income is $74,755, according to NetCredit.
The number 1 city for affordable housing options is Toledo, Ohiowhere 53% of available housing is considered affordable for the average resident. Detroit follows closely behind with 52.9% of available listings. Detroit also had the highest share of affordable housing based on national median income (77.6%).
The eight cities that followed in terms of affordability for local earners include Charleston, West Virginia (49.7%); Jackson, Mississippi (49.7%); Baltimore (32.1%); Cleveland (31%); Saint Louis (30.8%); Memphis, Tenn. (30.1%); Kansas City, Kansas (25.6%); and Little Rock, Arkansas (25.5%).
NetCredit attributes the high share of affordable listings in Toledo to recent population declines. Ohio is projected to experience population declines in 74 of the 88 counties statewide over the next 25 years. Ohio Department of Development. NetCredit also notes that “down payments on home purchases in Ohio are among the lowest in any state.”
Detroit’s affordability comes from another source. NetCredit reported that Detroit received $1 billion in investments since 2019 for low-income homebuyers and seniors. Detroit Mayor Mike Duggan has expressed his intention to invest in the city’s housing development in the coming years.
Despite increased affordability in some cities, other urban areas are at the other end of the spectrum. NetCredit identified nine cities with the lowest share of affordable housing, and five of them are in California. In Fremont, Long Beach, Oakland, San Jose and San Ana, none of the available listings were considered affordable for the average local earner.
Arizona also had three cities with little to no affordable housing options for middle-income buyers. NetCredit referred to a recent one report from Arizona State University, which highlighted a 72% increase in rental prices statewide between 2010 and 2022, in addition to a 57% increase in home prices between 2019 and 2023.
While there are still affordability issues in some areas, Redfin recently reported that housing affordability improved slightly by 2024, ending a multi-year cycle. But as policy changes take place and income trends change, this silver lining may be short-lived.
