By Merve Berker
More than 75% of US homes are unaffordable for the typical household, according to a new analysis by personal finance firm Bankrate, US media reported on Monday.
Bankrate defines affordability as housing costs that do not exceed 30% of a household's income, CBS News said.
In 2024, the median US household income was about $84,000, while roughly $113,000 in annual earnings are needed to afford a typical home priced at around $435,000, the analysis showed.
“Only a sliver of the housing market is affordable to the typical household,” Bankrate data analyst Alex Gailey said.
“That's when homeownership starts to feel less like a common middle-class milestone and more like a luxury.”
Experts note that homeownership has traditionally been a foundation for wealth building, but a nationwide shortage of affordable housing has pushed buying out of reach for many Americans.
The National Association of Realtors said only 24% of housing purchases in 2024 were made by first-time buyers, down sharply from 50% in 2010.
The US faces a shortage of approximately 4.7 million housing units, according to a July 2024 analysis by online tool Zillow.
In high-cost cities such as New York, San Francisco, and Seattle, households must earn over $200,000 annually to afford a median-priced home.
As of 2025, about 65% of US households owned their homes, down from a peak of over 69% in 2004, Federal Reserve data showed.
Gailey added, “Southern and Western regions have brighter outlooks,” citing looser permitting rules and better incentives that could support future home construction.