M
ore than three‑quarters of U.S. listings are beyond the reach of a typical household, a Bankrate study shows. While the median family earns just under $80,000 a year, the income required to afford a median‑priced home in 2025 climbs to roughly $113,000. The gap turns the idea of a starter home into a hard math problem for most buyers.

    In cities like Miami and Los Angeles, affordable options are almost nonexistent; a median‑income family would need to sift through hundreds of listings to find a single viable one. Conversely, pockets of the Rust Belt and South—Pittsburgh and St. Louis, for example—still offer nearly half their inventory within reach of the average earner.

    The crunch stems from rising prices, stubborn mortgage rates, and thin inventory. Alex Gailey, a Bankrate analyst, notes that the scarcity of affordable homes leaves many families with far fewer choices, making homeownership feel like a privilege rather than a milestone. “When only a sliver of the market is affordable, it’s no surprise that one in six hopeful buyers have walked away in the last five years,” she says.

    Gailey’s advice for those still pursuing a home is to secure pre‑approval early, adhere to a realistic budget, broaden the search radius, and take advantage of first‑time buyer programs if eligible. The reality remains that affordability varies dramatically by location, and while some large cities still offer a path to ownership, others have become increasingly out of reach.