Housing affordability remains a pressing issue for working-class individuals looking to rent or buy homes in recent times. Despite the challenges posed by increasing home prices and mortgage rates, online lender NetCredit has identified two cities that offer hope for average earners seeking affordable housing by 2025.
In a recent analysis of the 100 most populous cities in the U.S., NetCredit reviewed publicly available listings from Zillow for single-family homes, townhomes, condominiums, and co-ops. By comparing local and national average household incomes against U.S. Bank‘s threshold for affordable housing payments (28% of monthly income), NetCredit found that Toledo, Ohio, and Detroit are leading the way in affordable housing options.
Toledo topped the list with 53% of available properties deemed affordable for the average resident, followed closely by Detroit at 52.9%. Detroit also had the highest share of affordable properties based on the national average income (77.6%).
Other cities that ranked high in terms of local earner affordability include Charleston, West Virginia (49.7%); Jackson, Mississippi (49.7%); Baltimore (32.1%); Cleveland (31%); St. Louis (30.8%); Memphis, Tennessee (30.1%); Kansas City, Kansas (25.6%); and Little Rock, Arkansas (25.5%).
NetCredit attributes Toledo’s high share of affordable listings to recent population declines in Ohio. On the other hand, Detroit’s affordability is linked to receiving over $1 billion in investments since 2019 to benefit senior and low-income homebuyers.
While some cities are making progress in affordability, others face challenges. NetCredit identified nine cities with the lowest shares of affordable homes, with five of them located in California. Additionally, Arizona has three cities with limited affordable housing options for average-income buyers.
Despite these disparities, Redfin reported a slight improvement in housing affordability in 2024, marking the end of a multiyear cycle. However, with evolving policy changes and income trends, the future of housing affordability remains uncertain.
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