- US housing affordability has dropped 60% since 2022, with only one-third of homes now within financial reach of the average buyer.
- Rust Belt cities such as Detroit, St. Louis, and Pittsburgh remain among the most affordable, though prices there are also rising steadily.
- Pandemic-era price surges and elevated mortgage rates have continued to erode affordability across the country.
Affordability Hits New Lows
According to Redfin’s latest report, just 35% of homes on the US market are affordable for a typical homebuyer, reports GlobeSt. This marks a sharp decline from 2022 levels. The housing market has been reshaped by a combination of pandemic-driven price spikes, high mortgage rates, and long-term underbuilding. Homebuyers are increasingly finding affordable options in Rust Belt cities, where prices remain below the national median.
Rust Belt Offers A Lifeline
Rust Belt cities have emerged as relative safe havens for affordability. Detroit leads the nation, with nearly 70% of listings considered affordable and a median sale price of $215K. St. Louis and Pittsburgh follow closely, each with over 60% affordability and median home prices below $300K.
Other affordable metros include Dayton, Cleveland, Baton Rouge, Rochester, Baltimore, Birmingham, and Lake County, Illinois—markets where median home prices are roughly half the national average.
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Affordability Advantage At Risk
Even in these traditionally budget-friendly regions, affordability is beginning to slip. Redfin flagged Rochester as a hotspot, with home prices rising $27K last year—nine times the national average increase.
“Seven of the 10 cheapest housing markets in the country are in the Rust Belt,” the report states, “but that affordability edge may shrink unless local incomes rise to match prices.”
What’s Ahead
Looking forward, Redfin projects a bifurcated path for US housing markets. In high-cost metros where homes linger on the market, prices could decline by about 1% by year-end. In areas like California and Montana, where home prices far exceed wages, affordability is expected to decline even more.
With economic uncertainty and underbuilding still impacting supply, housing affordability is likely to remain a central challenge for both buyers and policymakers in the coming years.
