A ConsumerAffairs report found that a household needed an annual income of $120,796 to afford a home with a 10% down payment. That exceeded the U.S. median household income of $83,730 in 2024, according to the U.S. Census Bureau.
Affordability varied widely by city. San Jose, California topped the list, requiring an annual income of $501,012 to afford a typical home. San Francisco, California, was in second place at $358,090 per year.
Cities with lower income requirements were spread across the South and Midwest. Huntington, West Virginia, was the most affordable city to buy a home. The income needed to purchase a home there was $53,650, 13.1% lower than the median household income. Youngstown, Ohio; Shreveport, Louisiana; Flint, Michigan; Peoria, Illinois; Binghamton, New York; Mobile, Alabama; Columbus, Georgia; Fort Smith, Arkansas; and Macon, Georgia rounded out the top ten most affordable cities to buy a home.
The findings help explain why some prospective homeowners moved in with family, chose smaller homes, or relocated in search of lower housing costs.
The South saw an influx of residents from the North seeking lower home prices and a lower overall cost of living. The Midwest also attracted homebuyers because of its affordability.