If you’ve ever felt like buying a home was out of reach, you’re not alone — but location makes an enormous difference. Across more than 500 U.S. metro areas, home affordability swings from genuinely reasonable to eye-watering depending on where you plant your flag. The price-to-income ratio (average home price divided by median household income) is the clearest way to compare apples to apples, and the gap in this study is staggering: the most affordable city in the country, Danville, Illinois, has a price-to-income ratio of just 1.5 — while San Francisco clocks in at 9.7, making its homes more than six times harder to buy relative to local earnings.

Key most affordable cities for homebuyers statistics in America

Here’s the headline data from a study of 507 U.S. metropolitan statistical areas. Home price data came from the Zillow Home Value Index; household income and composition data came from the U.S. Census Bureau’s American Community Survey.

  • The national average price-to-income ratio is 4.0, meaning the typical American home costs four times the local median household income.
  • The most affordable city in the country is Danville, IL, with a price-to-income ratio of 1.5 — a weighted average home price of $67,527 against a median household income of $43,655.
  • The least affordable city is San Francisco, CA, with a price-to-income ratio of 9.7 — average home prices top $1,000,000 while median household income sits at $107,898.
  • To crack the top 50 most affordable cities list, a metro needed a price-to-income ratio of 2.27 or lower.
  • To land in the top 50 least affordable cities list, a metro needed a price-to-income ratio above 5.5.
  • 39 of the top 50 most affordable cities are small cities (population under 150,000).
  • Only 2 large cities (population 500,000+) made the most affordable top 50: Youngstown, OH (#20) and Scranton, PA (#45).
  • Over two-thirds of the most affordable cities are located in the Midwest.
  • 18 of the 50 least affordable cities are in California — and California dominates the top 5 least affordable spots entirely.
  • Western states overall account for 38 of the 50 least affordable metros.
  • The top 5 least affordable cities are all in California: San Francisco, Santa Cruz, San Jose, San Luis Obispo, and Los Angeles.
  • San Jose has the highest median household income in the study at $124,696 — but it still ranks as the #3 least affordable city because average home prices hit $1,117,917.

If you’re shopping for Compare Homeowners Insurance Quotes Online as part of your buying journey, the city you land in will shape both your mortgage costs and your insurance premiums — so affordability really does cut across every line item.

Most affordable cities for homebuyers statistics by city size

City size matters a lot when you’re comparing affordability. A small midwestern town and a large coastal metro aren’t really competing for the same buyers, so breaking things down by population gives you a more useful picture.

The study divided metros into three buckets:

  • Small cities: population under 150,000
  • Midsize cities: population 150,000–500,000
  • Large cities: population over 500,000

Most affordable — top 10 at a glance

Among all city sizes combined, the cheapest markets for homebuyers cluster heavily in small towns in Illinois, Pennsylvania, Indiana, and Oklahoma:

Rank City Size Avg. Home Price Median HH Income Price-to-Income
1 Danville, IL Small $67,527 $43,655 1.5
2 Pottsville, PA Small $78,454 $48,458 1.6
3 Johnstown, PA Small $74,083 $45,084 1.6
4 Decatur, IL Small $83,566 $50,066 1.7
5 Ogdensburg, NY Small $83,086 $49,681 1.7
6 Olean, NY Small $85,444 $48,179 1.8
7 Enid, OK Small $97,095 $53,946 1.8
8 Lawton, OK Small $95,443 $52,034 1.8
9 Roanoke Rapids, NC Small $67,981 $37,027 1.8
10 Marion, IN Small $83,608 $44,839 1.9

Danville, IL is the standout leader — the former industrial and coal city in eastern Illinois (with deep Lincoln legal history, interestingly) has an average home price under $70,000. For context, that’s cheaper than most new cars.

Pottsville, PA — home of Yuengling, America’s oldest brewery — comes in second. A median household income of $48,458 goes a surprisingly long way when average home prices are only $78,454.

Johnstown, PA rounds out the top three. Average homes run $74,083 against a median income of $45,084, putting its ratio at a near-identical 1.6.

Most affordable midsize cities

Not everyone wants a small town. If you need a larger metro with more job options, midsize cities still offer solid value. Peoria, IL (ratio: 1.9), Wichita Falls, TX (ratio: 2.0), Saginaw, MI (ratio: 2.0), Springfield, IL (ratio: 2.0), and Terre Haute, IN (ratio: 2.0) all land near the top for midsize affordability.

Most affordable large cities

Large, affordable cities are rare — but they do exist. Youngstown, OH (ratio: 2.0, average home price $95,516) and Scranton, PA (ratio: 2.3, average home price $121,971) are the only two large cities to crack the top 50 most affordable list. That’s it. Two out of hundreds of large metros.

Most affordable cities for homebuyers statistics by state and geography

Geography tells the sharpest story when it comes to home affordability. Where you live in the country matters more than almost any other factor.

Most affordable states (by metro representation in top 50)

The states with the most metros in the top 50 most affordable list are overwhelmingly concentrated in the industrial Midwest and Appalachia:

  • Illinois — multiple entries including Danville (#1), Decatur (#4), Peoria (#15), Springfield (#22), Rockford (#25), Ottawa (#30), Bloomington (#43), Quincy (#47)
  • Pennsylvania — Pottsville (#2), Johnstown (#3), Meadville (#19), DuBois (#33), Somerset (#34), New Castle (#40), Scranton (#45), Altoona (#48)
  • Indiana — Marion (#10), Kokomo (#16), Terre Haute (#23), Muncie (#27)
  • New York — Ogdensburg (#5), Olean (#6), Corning (#13), Elmira (#14), Binghamton (#41), Jamestown (#46)
  • Oklahoma — Enid (#7), Lawton (#8), Muskogee (#11), Shawnee (#21)
  • West Virginia — Weirton (#12), Bluefield (#24), Wheeling (#28), Beckley (#32)
  • Ohio — Youngstown (#20), Lima (#36), Mansfield (#38), Springfield (#42)

Over two-thirds of the 50 most affordable metros are in the Midwest, confirming what you probably already suspected: lower land costs, older housing stock, and slower population growth keep prices in check.

Least affordable states (by metro representation in bottom 50)

On the flip side, the states stacking the least affordable list tell a very different story:

  • California — 18 of the 50 least affordable metros, including 5 of the top 5: San Francisco (#1, ratio 9.7), Santa Cruz (#2, ratio 9.6), San Jose (#3, ratio 9.0), San Luis Obispo (#4, ratio 8.7), Los Angeles (#5, ratio 8.7)
  • Hawaii — Kahului (#8, ratio 8.4), Kapaa (#12, ratio 7.8), Honolulu (#13, ratio 7.7), Hilo (#18, ratio 6.8)
  • Colorado — Glenwood Springs (#6, ratio 8.5), Boulder (#25, ratio 6.5), Fort Collins (#40, ratio 5.7)
  • Oregon — Grants Pass (#30, ratio 6.2), Bend (#31, ratio 6.2), Eugene (#34, ratio 5.9), Medford (#42, ratio 5.6)
  • Washington — Oak Harbor (#21, ratio 6.7), Bellingham (#24, ratio 6.6), Seattle (#33, ratio 5.9), Wenatchee (#41, ratio 5.6)

Western states collectively account for 38 of the 50 least affordable metros. If you’re moving west for lifestyle, build serious buffer into your housing budget.

Notable standouts

  • Key West, FL cracks the least affordable top 10 with a ratio of 8.5 — average homes run $611,195 against a median income of $71,973.
  • Glenwood Springs, CO — a small mountain resort town — hits a ratio of 8.5, showing resort and recreation demand can rival big-city prices.
  • New York, NY lands at #49 least affordable with a ratio of 5.5 and an average home price of $434,012. Surprisingly, it’s not as extreme as many West Coast cities when measured this way, largely because NYC’s high incomes partially offset high prices.
  • Bozeman, MT and Kalispell, MT both make the least affordable list (ratios of 6.7 and 6.6 respectively), evidence of the Rocky Mountain “Zoom town” effect even before remote work fully exploded.

Most affordable cities for homebuyers statistics by income and demographics

Price-to-income ratio is inherently an income story — it directly compares what homes cost against what people actually earn. Here’s how that plays out across different income and demographic cuts.

High-income cities that are still unaffordable

You might assume that cities with high household incomes are easier to buy in. The data says otherwise, at least for the extremes:

  • San Jose, CA has the highest median household income in the entire study at $124,696 — yet its price-to-income ratio is 9.0 because average home prices hit $1,117,917. Earning more doesn’t help when home prices scale up even faster.
  • San Francisco, CA — median household income of $107,898, far above the national average — still lands as the least affordable city in the country with a ratio of 9.7.
  • Seattle, WA — median household income of $87,910, one of the highest in the study — still posts a ratio of 5.9, landing in the least affordable top 50.

Low-income cities where affordability breaks down differently

On the affordable end, several cities combine low home prices with low incomes — the ratio looks good, but the underlying economics are fragile:

  • Roanoke Rapids, NC: average home price of $67,981 and ratio of 1.8, but median household income is only $37,027.
  • Lumberton, NC: average home price $76,201, ratio 2.2, median income just $35,037 — the lowest in the top 50 affordable list.
  • Pine Bluff, AR: average home price $84,649, ratio 2.3, median income $37,314.
  • Beckley, WV: average home price $83,019, median income $38,917, ratio 2.1.

These markets look affordable by the ratio, but a buyer earning $35,000–$38,000 per year still faces meaningful hurdles securing a mortgage, building a down payment, and absorbing property taxes, insurance, and maintenance costs.

The sweet-spot cities

The most genuinely buyer-friendly markets tend to combine moderate incomes (roughly $48,000–$65,000) with home prices that stay well below three times earnings:

  • Springfield, IL: median income $63,521, average home $128,828, ratio 2.0
  • Bloomington, IL: median income $64,822, average home $145,161, ratio 2.2
  • Sioux City, IA: median income $61,576, average home $139,753, ratio 2.3
  • Peoria, IL: median income $58,603, average home $111,989, ratio 1.9

These are the places where a family earning a solid middle-class income can buy a home without spending the next three decades financially stretched. If you’re also thinking about protecting that investment, it’s worth comparing homeowners insurance quotes early in the process — rates in affordable Midwest markets tend to run lower than coastal metros too.

The data snapshot in this study reflects conditions as of mid-2020 (Zillow data through Q2 2020, Census data from 2018). The broader trend picture shows how dramatically affordability has shifted over the past decade-plus — and not in buyers’ favor.

The pre-2020 baseline

Even before the pandemic-era housing surge, the housing affordability story was already stark. Industry research tracking price-to-income ratios across U.S. metros through the late 2010s showed the national average ratio had been climbing steadily from a post-2008 trough as home values recovered faster than wages in most markets.

At the time this data was collected:

  • The national average price-to-income ratio stood at 4.0
  • The most affordable metro ratio floor was 1.5
  • The least affordable metro ratio ceiling had reached 9.7

The 2020–2023 surge

After mid-2020, conditions shifted sharply. According to Federal Reserve and Census Bureau data, U.S. home prices surged by roughly 40%–45% between early 2020 and late 2022 in many markets, driven by record-low mortgage rates, pandemic-driven relocation demand, and constrained inventory. The metros that were already least affordable — California, Hawaii, the Pacific Northwest — saw some of the sharpest absolute dollar increases, even if percentage gains were sometimes higher in previously affordable markets.

Small midwestern cities that dominated the affordable end of the spectrum in 2020 saw price increases too, but generally maintained better price-to-income ratios than coastal metros because local incomes and demand fundamentals didn’t change as dramatically.

Rate increases and affordability compression (2022–2024)

The Federal Reserve’s rate-hiking cycle that began in 2022 added a new affordability layer: even in “affordable” cities, monthly mortgage payments grew significantly as 30-year fixed rates climbed from under 3% to over 7%. According to consumer finance research, the monthly payment on a median-priced home roughly doubled between 2020 and 2023 at national price levels — squeezing buyers in both expensive and affordable markets.

For buyers in the most affordable metros, this matters but remains less catastrophic: a $90,000 home at 7% still produces a manageable monthly payment. For buyers in San Francisco or San Jose looking at million-dollar homes, rate increases compounded already brutal affordability conditions.

What hasn’t changed

The geographic pattern has proven durable. The Midwest and Appalachian markets that led the affordability rankings in 2020 still represent better value by price-to-income measures than coastal and resort markets, even accounting for post-2020 price appreciation. Smaller cities with stable (if modest) economic bases haven’t experienced the same supply-demand whiplash as Sun Belt boomtowns or West Coast tech hubs.

Frequently asked questions

What city is most affordable for homebuyers in the U.S.?

Based on price-to-income ratio data across 507 metros, Danville, Illinois ranks as the most affordable city for homebuyers. Its weighted average home price of $67,527 against a median household income of $43,655 produces a ratio of just 1.5 — the lowest in the country by this measure.

What city is least affordable for homebuyers in the U.S.?

San Francisco, California is the least affordable city for homebuyers. Average home prices exceeded $1,047,516 while median household income was $107,898 — a price-to-income ratio of 9.7. The top five least affordable cities are all in California.

What is a price-to-income ratio and why does it matter?

The price-to-income ratio divides the average home price in a city by the median household income. A lower number means homes are more affordable relative to what people earn locally. The national average is 4.0. Ratios above 5 generally indicate serious affordability strain for typical households.

Are large cities ever affordable for homebuyers?

Rarely. Only two large cities (population over 500,000) made the top 50 most affordable list: Youngstown, OH (ratio 2.0) and Scranton, PA (ratio 2.3). Most large cities carry price-to-income ratios well above the national average of 4.0.

Which states have the most affordable housing markets?

Illinois, Pennsylvania, Indiana, Ohio, Oklahoma, and West Virginia have the highest concentration of affordable metros by price-to-income ratio. Over two-thirds of the 50 most affordable metros are located in the Midwest.

Which states have the least affordable housing markets?

California dominates, with 18 of the 50 least affordable metros — including the top 5. Hawaii and western states like Oregon, Washington, and Colorado also stack heavily in the least affordable rankings, accounting for 38 of the bottom 50 combined.

Methodology

This analysis examined housing affordability data across 507 U.S. metropolitan statistical areas (MSAs). Home price data was sourced from the Zillow Home Value Index, current as of the end of Q2 2020. Household income, household composition, and population data came from the U.S. Census Bureau’s American Community Survey (2018 data release).

For each MSA, we calculated the distribution of households living in homes with 1–5+ bedrooms and multiplied each bedroom-tier’s percentage share by the corresponding average Zillow home value to produce a weighted average home price for each city. We then divided that weighted average price by the city’s median household income to produce the price-to-income ratio.

Cities were segmented by population into small (under 150,000), midsize (150,000–500,000), and large (500,000+) categories. Zero-bedroom residences were counted as 1-bedroom units for weighting purposes. This methodology captures the actual housing mix that buyers encounter, rather than treating all homes as equivalent regardless of size.

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