The landscape of affordable housing in the United States has shifted dramatically since 2022, with the number of homes within reach for the average buyer plummeting by 60%. Now, only 35% of homes are considered affordable to typical homebuyers, according to a new report from Redfin. Much of what remains is concentrated in the Rust Belt, a region where home prices hover at roughly half the national median.
Detroit stands out as the most affordable major city for homebuyers, according to Redfin, with 69% of its listings deemed affordable and a median sale price of $215,000—a figure that has increased 7.5% over the past year. St. Louis follows closely, offering 64.8% affordability and a median price of $285,000, up 6.3% year-over-year. Pittsburgh rounds out the top three, where 63.9% of homes are affordable and the median price sits at $255,000, reflecting a 6.6% annual increase. Other cities ranking high for affordability include Dayton, Baton Rouge, Cleveland, Rochester, Baltimore, Birmingham, and Lake County, Illinois.
Redfin attributes the steep decline in affordable housing to the pandemic era, when both home prices and mortgage rates surged in tandem. The report noted that “both remain elevated due to chronic underbuilding and broad economic uncertainty.” Even in markets traditionally known for affordability, such as those in the Rust Belt, rising demand is beginning to erode that advantage. The report highlights Rochester, where prices have surged by $27,000 in the past year—an increase nine times greater than the national average.
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“Today, seven of the 10 cheapest housing markets in the country are in the Rust Belt, but that affordability edge may shrink unless local incomes rise to match prices,” Redfin cautions. Meanwhile, cities that experienced rapid price growth during the pandemic are now seeing some of the sharpest declines.
Looking ahead, Redfin outlines two possible scenarios for the housing market. In high-priced areas where buyers are scarce, homes are lingering on the market longer, which could push prices down by 1% by year’s end and potentially stimulate sales. Conversely, in markets where the gap between prices and wages is widest—such as Montana and California—affordability could deteriorate further, according to the report.
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