These 6 Big US Cities Still Have Affordable Homes


Only six major US cities have median home prices that a family with a local median income could afford.

A April report by Clever Real Estate compared the income needed to afford a home in major US cities with the actual income earned by a typical household.

The report considered a home affordable for a given buyer if it met the criteria Rule 28/36which advises buyers to spend a maximum of 28% of their monthly income on housing, plus an additional 8% paying off other debt such as credit card or car bills.

Even with a 20% down payment, the standard home buyer making the median local wage would not be able to afford a home listed at a median market price in 44 of the top 50 cities.

Home mortgage rates are also high now, which can prevent sellers from listing homes and buyers from buying them.

Connected: 'Silver tsunami' meets 'golden handcuffs' as historically low mortgage rates lock in homeowners – whether they like it or not

Here are six cities with homes average earners can afford.

1. Pittsburgh, Pennsylvania

Pittsburgh, Pennsylvania. Credit: Getty Images

Current income: 70 607 dollars

Income needed to afford the average home: $59,919

Average local home sale price: $199,573

2. Cleveland, Ohio

Current income: $65,198

Income needed to afford the average household: $56,378

Average local home sales price: $182,652

3. St. Louis, Missouri

St. Louis, Missouri. Credit: Getty Images

Current income: $74,531

Income needed to afford the average home: $66,743

Average local home sales price: $225,674

4. Memphis, Tennessee

Current income: $64,008

Income needed to afford the average home: $61,659

Average local home sale price: $213,929

5. Indianapolis, Indiana

Current income: $75,824

Income needed to afford the average home: $73,398

Average local home sale price: $257,584

6. Birmingham, Alabama

Birmingham, Alabama. Credit: Getty Images

Current income: $67,242

Income needed to afford the average home: $65,216

Average local home sale price: $235,212



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