Financial advisors like to use the rule of thumb that housing payments should not exceed 28% of a client’s gross income, SmartAsset noted in a recent report. In 2024, housing payments accounted for an estimated 20.98% of Americans’ median household income, according to the most recent Census Bureau data.
The report found, however, that in major cities, housing costs often exceed the 28% guideline. Changes to property taxes, utilities, homeowners insurance, mortgage rates, local legislation and homeowners association dues may affect the cost to both homeowners and renters, it said.
SmartAsset researchers weighted median housing costs for renters and homeowners and compared these to the median household income in each of 50 of America’s largest cities to determine where housing is most and least affordable for residents.
All data came from the U.S. Census Bureau 1-Year American Community Survey for 2024. Researchers included some 2023 data for comparison.
See the accompanying gallery for the 12 least affordable cities for housing.
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