Only six major U.S. cities have median home prices that a household making the local median income could afford.
An April report from Clever Real Estate compared the income needed to afford a home in major U.S. cities to the actual income earned by the typical household.
The report considered a home affordable to a particular buyer if it fulfilled the popular 28/36 rule, which advises buyers to spend a maximum of 28% of their monthly income on housing, plus an extra 8% paying other debt like credit card or auto bills.
Even with a 20% down payment, the standard homebuyer making median local pay would not be able to afford a home listed at a middle-of-the-market price in 44 out of 50 major cities.
Home mortgage rates are also high right now, which could prevent sellers from listing homes and buyers from purchasing them.
Here are the six cities with homes that median earners can afford.
1. Pittsburgh, Pennsylvania
Pittsburg, Pennsylvania. Credit: Getty Images
Actual Income: $70,607
Income Needed To Afford The Median Home: $59,919
Local Median Home Sale Price: $199,573
2. Cleveland, Ohio
Actual Income: $65,198
Income Needed To Afford The Median Home: $56,378
Local Median Home Sale Price: $182,652
3. St. Louis, Missouri
St. Louis, Missouri. Credit: Getty Images
Actual Income: $74,531
Income Needed To Afford The Median Home: $66,743
Local Median Home Sale Price: $225,674
4. Memphis, Tennessee
Actual Income: $64,008
Income Needed To Afford The Median Home: $61,659
Local Median Home Sale Price: $213,929
5. Indianapolis, Indiana
Actual Income: $75,824
Income Needed To Afford The Median Home: $73,398
Local Median Home Sale Price: $257,584
6. Birmingham, Alabama
Birmingham, Alabama. Credit: Getty Images
Actual Income: $67,242
Income Needed To Afford The Median Home: $65,216
Local Median Home Sale Price: $235,212