Zoocasa: Only 18 of 225 U.S. Cities Affordable for Median Homebuyers

Only 18 of 225 U.S. cities analyzed offer estimated monthly mortgage payments at or below 28% of local median household income, according to a new Zoocasa report, as elevated mortgage rates and tight supply keep homeownership out of reach for many median earners. Small and mid-sized Midwestern cities dominated the list, with four of the top five located in Illinois, including Decatur and Peoria. All 18 cities recorded median home prices below $270,000, well under the national median of $434,900. An additional 130 metro areas, including Minneapolis, Dallas, Atlanta and Chicago, require between 28% and 43% of median household income to cover a mortgage payment — a range some lenders accept under debt-to-income limits of 43% or higher. The report notes rate shopping matters: on a $450,000 30-year fixed loan, a 7.5% rate versus 6.5% adds more than $100,000 in lifetime interest.