2026 Data: Home Price Growth Outpaces Income in All Major U.S. Metros

The median U.S. home costs $414,900 while the median household earns $81,604 per year, according to the most recent Census Bureau data, which this study uses to calculate ratios nationally and by metro.

This produces a national home-price-to-income ratio of 5.08. That is nearly double the 2.6 ratio financial experts generally recommend as the maximum for housing to be considered affordable.

Of the 50 most populous U.S. metros, Pittsburgh has the lowest home-price-to-income ratio at 3.07. The median home there costs $237,400 on a median income of $77,214. Despite being the most affordable, it still exceeds the recommended 2.6 threshold.

San Jose, where the median home costs $1.92 million on a median income of $164,801, has the highest home-price-to-income ratio at 11.65, nearly four times Pittsburgh's ratio.

The home-price-to-income ratio increased from 3.65 in 1980 to its 2022 peak of 5.83. Although the ratio has eased slightly since then to 5.08, it remains well above any level seen before 2020.

In 1980, the median home sold for $64,600, and the median household earned $17,710. By 2024, the median home had reached $420,300 while household income climbed to $83,730, according to NAR data. Home prices multiplied 6.5x over that span while incomes grew less than 4.8x.

Income growth has occasionally outpaced home price growth, most notably during the 2008 housing crash and during the 2023 to 2024 price correction. But even in those stretches, the cumulative gap barely narrowed. A few years of modest correction cannot erase decades of compounding home price gains.

From 1980 to 2005, the home-price-to-income ratio climbed steadily as housing prices surged during the pre-crisis boom. The 2008 crash brought temporary relief, but by 2020, low interest rates and pandemic-fueled demand launched the ratio into uncharted territory.

Even after easing from its 2022 peak, today's ratio of 5.08 remains well above any level seen before 2020.

The COVID-19 pandemic produced the sharpest divergence between home prices and incomes in modern history.

Between 2019 and 2024, median home prices surged 31%, from $321,500 to $420,300. Meanwhile, household incomes rose just 22%, from $68,700 to $83,730. In just those five years, home prices grew nearly 1.5x faster than incomes.

Home prices spiked nearly 16% in 2021 and 13% in 2022 as record-low interest rates, remote work migration, and limited inventory created a buying frenzy. Incomes, by contrast, grew at a far steadier pace, never exceeding 9% in any single year.

If household income had grown at the same rate as home prices since 1980, when the median home cost $64,600 and the median household earned $17,710, the typical American household would earn $115,225 today instead of $83,730, a gap of $31,495.

Looking at it from the other direction, using 2000 as a baseline because it marks the start of the sharpest home-price acceleration: If home prices had grown only as fast as incomes since 2000, when the median home cost $169,000 and the median household earned $41,990, the median U.S. home would cost $336,994 today, $83,306 less than the actual $420,300.

San Jose leads the nation in unaffordable housing with a home-price-to-income ratio of 11.65. Five of the 10 least affordable metros are in California, including the top four: San Jose, Los Angeles, San Francisco, and San Diego.

The median San Jose home, which includes Silicon Valley, sells for $1.92 million while the median household income is $164,801. A combination of limited housing supply, high demand from the tech sector, and restrictive zoning drives California's dominance at the top of the list.

Unlike the California metros, Miami's ratio as the No. 5 least affordable metro is driven as much by relatively low incomes ($80,625) as by high home prices ($635,000). International demand for real estate, a booming population, and limited buildable land all contribute to Miami's outsized ratio compared to other Florida metros.

Seven of the 10 most affordable metros are in the Midwest or Rust Belt, regions where decades of population loss have kept housing supply high relative to demand. Pittsburgh, Cleveland, and Detroit all have median home prices under $280,000, keeping ratios well below the national average of 5.08.

Dallas and Atlanta stand out as Sun Belt metros that remain relatively affordable despite rapid population growth. Both benefit from fewer land-use restrictions and ample room to build, which has helped housing supply keep pace with demand, at least for now.

The gap between the most and least affordable major U.S. metros is staggering. A home in San Jose costs 3.8x more relative to local incomes than a home in Pittsburgh.

In dollar terms, the median San Jose home ($1.92 million) costs more than eight times what the median Pittsburgh home does ($237,400), while the income gap between the two metros is far narrower: $77,214 versus $164,801, a difference of just over double.

The research also found that a metro's size has little bearing on its affordability. New York, Los Angeles, and Miami rank among the 10 least affordable, while Chicago, Dallas, Houston, Atlanta, and Philadelphia, all among the nation's largest metros, land among the 20 most affordable.

The West is the only region where every metro in our study exceeds the national home-price-to-income ratio of 5.08. All 13 Western metros fall in the bottom half of the affordability rankings.

Phoenix, the most affordable Western metro, still ranks just 31st nationally with a home-price-to-income ratio of 5.29. From there, the numbers climb steeply: Denver and Portland hover near 5.96, Las Vegas crosses the 6.0 threshold, and the seven California metros range from 5.46 in Sacramento to 11.65 in San Jose.

Decades of rapid population growth, constrained housing supply, and high demand across industries from tech to tourism have combined to push Western housing costs well beyond what local incomes can support.

Florida's affordability picture varies dramatically by metro.

Miami (7.88) ranks as the fifth least affordable metro in the country, driven by international demand and limited buildable land. But Jacksonville (4.76) and Tampa (5.11) are far more moderate. Orlando (5.44) falls in between, reflecting its growing population and tourism-driven economy.

Rust Belt and Midwestern metros consistently rank among the most affordable in the nation.

Pittsburgh, Cleveland, St. Louis, Detroit, Cincinnati, Columbus, and Indianapolis all post home-price-to-income ratios below 4.15. These metros benefit from large existing housing stock, affordable land, and growing job markets that have attracted new residents without the same price pressure seen in coastal cities.

Texas metros span a wide range of affordability.

Austin (4.66) sits above the midpoint, while San Antonio (4.05), Houston (4.14), and Dallas (3.95) cluster near the affordable end. The state's lack of an income tax and relatively permissive building regulations help keep housing costs lower.

The D.C. metro posts a ratio of 5.08, identical to the national figure.

Despite having the highest median income of any metro on the list at $126,244, its equally high home prices ($641,600) keep it squarely at the national average.