Local Buyer Affordability Index: Ranking the Most and Least Affordable Housing Markets in America

The "headline" housing market - or the national average - has been reported as having stabilized recently; however, for many U.S. consumers, this stabilization does not accurately reflect their experiences with housing markets in their local communities.

In order to determine the true purchasing power of homebuyers in each of the 98 most populous metropolitan markets in the U.S., PropFusion analyzed the relationship between median household income and the median home values across the country's most populous metropolitan areas. 

Using the December 2024 and December 2025 home value indices and current median incomes, the study measured the change in affordability during this period. By analyzing these local markets, the study allowed researchers to strip away generalizations made at the national level and compare which markets are experiencing improved affordability, which are not, and which remain completely unaffordable.

Key Findings

• The national market has peaked and is now stable, as indicated by a negligible 0.87% median year-over-year price change across all of the cities included in this analysis.
• Local buyers continue to face the highest barrier to entry in Los Angeles, California, as the price-to-income ratio sits at 11.39.
• For those who earn a living locally, McAllen, Teas, represents the best value based on its low price-to-income ratio of 3.09.
• There is an obvious correction occurring in Florida's major metropolitan areas, as evidenced by a combined median decline of $17,384 in price.
• Home prices in the Northeast are tightening as well; Bridgeport, Connecticut, has seen the largest increase in home values, up $24,577 year-over-year.

National Overview: A Year of Stagnation

One of the key features of the 2026 housing market is how stable it will be - almost stagnant. Our analysis of the top 98 US cities, and our results indicate that while we are still in a housing boom, the rapid growth seen in the last few years appears to have slowed down dramatically. 

Median home values across those cities rose slightly from $353,182 at the end of 2024, to $353,451 at the end of 2025. That slight gain would appear to keep up with inflation over the past year

That slow rate of change may indicate that the market has reached equilibrium. 

While that should be viewed as good news for potential homebuyers who were concerned that prices may continue to rise dramatically, it is also an indication that affordability in many parts of the country is not improving naturally through a national correction in home prices. 

The median price-to-income ratio was also only minimally affected, rising from 5.08 to 5.10, indicating that, for most American consumers, the amount of money needed to afford a home is essentially unchanged compared to last year.

Most and Least Affordable Markets

There is still a large difference between the most and least affordable real estate markets. 

In the United States' most expensive areas, like California and the Northeast, homes are priced at 10 times or greater than the median household income for one year; this price gap creates barriers to new buyers for almost all high-wage earners except those who have significant equity in other properties. 

In contrast, many Midwestern and Southern U.S. markets remain priced near or below the 4.0 ratio, enabling potential homeowners earning median incomes to become homeowners.

Least Affordable Markets by Price-to-Income Ratio

Most Affordable Markets by Price-to-Income Ratio 

Complete Rankings: The Housing Affordability Across America's Largest Cities

Regional Focus: The Florida Correction

Florida has deviated significantly from the national trend, with major metro areas experiencing a decline after many years of the highest appreciation nationwide. 

According to our data, the median home values declined by $17,384 in the analyzed cities in Florida. The decline in median home values will improve affordability in Florida, where housing is now more affordable than average wages. The decrease in median home values indicates a reduction in demand or an increase in available inventory, leading sellers to lower their price expectations.

Local buyers, who were unable to purchase homes in Florida over the past few years due to increasing unaffordable pricing, may see the first real chance to get into the Florida housing market with better affordability (and price) in 2026.

Regional Focus: Northeast Tightening

The Northeast is experiencing a tighter affordability market. Bridgeport, CT, is the prime example of this trend. 

While many other markets experienced flat or declining year-over-year home value changes, Bridgeport, CT, saw a year-over-year increase of almost $25,000. This appreciation has raised the price-to-income ratio in Bridgeport to 11.31, making it the second-most-expensive market per income in our database, behind Los Angeles. 

These trends indicate that, despite high interest rates and economic uncertainty, there is still strong demand for housing in the Northeast's established urban areas, driving continued price increases and, ultimately, straining local buyers' budgets.

Methodology

This report analyzed housing affordability in the 98 largest U.S. metropolitan areas. We used Median Household Income data for 2024, the latest full-year figures available from the U.S. Census Bureau. To determine housing costs, we extracted the Zillow Home Value Index (ZHVI) for December 2024 and December 2025.

We calculated the "Price-to-Income Ratio" by dividing the ZHVI for each respective year by the 2024 median income. This ratio expresses the home value as a multiple of the local annual income. We excluded two cities from the initial list of 100 due to insufficient or incomplete data sets to ensure the accuracy of the final rankings.

Fair Use Statement

Interested in covering this research? We encourage you to use any of the findings, data, or graphics included in this report. We just ask that you please provide attribution to PropFusion by linking back to this page so your readers can explore the full study and its methodology.