Housing affordability is a constant concern for working class renters and homebuyers in recent years. Despite rising home prices and mortgage rates, online lender NetCredit highlighted two major cities with a glimmer of hope for average earners looking for affordable housing in 2025.
NetCredit released an analysis this week of the 100 most populous cities in the US. Zillow listings for single family homes, townhomes, condominiums and co-ops. To identify the most affordable listings, NetCredit averages the household’s median and national income Bank of the USAffordable mortgage payment limit — 28% of monthly income. The national median income is $74,755, according to NetCredit.
The No. 1 city for affordable housing options is Toledo, Ohio, where 53% of available properties are considered affordable for the average resident. Detroit is close behind with 52.9% of available listings. Detroit also had the highest share of affordable housing based on the national average (77.6%).
The next eight cities in terms of accessibility to area income include Charleston, West Virginia (49.7%); Jackson, Mississippi (49.7%); Baltimore (32.1%); Cleveland (31%); Louis (30.8%); Memphis, Tennessee (30.1%); Kansas City, Kansas (25.6%); and Little Rock, Arkansas (25.5%).
NetCredit explains Toledo’s high share of affordable listings in the recent decline. Ohio is projected to experience the largest decline in population in the nation in 74 of 88 counties over the next 25 years, according to the report. Ohio Department of Development. NetCredit also notes that “down payments to buy a home in Ohio are among the lowest of any state.”
Detroit’s affordability comes from a different source. NetCredit reported that Detroit has received $1 billion in investments since 2019 to benefit senior and low-income home buyers. Detroit Mayor Mike Duggan has expressed his intentions to invest in housing development efforts in the city in the coming years.
Despite the greater accessibility of some cities, some metro areas remain at the lower end of the spectrum. NetCredit identified nine cities with the lowest shares of affordable housing and five of them are in California. In Fremont, Long Beach, Oakland, San Jose and San Ana, there are no listings available that are considered affordable to the average local.
Arizona also had three cities with affordable housing options for average income buyers. NetCredit cited a recent report from Arizona State University that highlighted a 72% increase in rental prices nationwide between 2010 and 2022, and a 57% increase in home prices between 2019 and 2023.
Although affordability problems persist in some areas, Redfin recently reported that housing availability has improved slightly through 2024, ending a multi-year cycle. However, as policy changes occur and income trends change, this silver rally may be short-lived.
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