Homeownership has long been heralded as a cornerstone of the American dream, a realization of financial stability, and an investment in the future. These days, with climbing mortgage rates and sky-high home prices, buying a home can be more challenging than ever.
“Housing affordability has worsened in recent years due to a combination of rising home prices, limited housing supply, and elevated mortgage rates,” says Oudom Hean, assistant professor of finance at North Dakota State University. “Although incomes have grown in some areas, they often lag behind the pace of housing cost increases. This imbalance makes it increasingly difficult—especially for first-time buyers—to enter the market.”
Once a symbol of upward trajectory, homeownership has now become an uphill battle for many, and housing costs remain out of reach for many in the American middle class. Understanding where homeownership is still feasible can help potential buyers make more informed decisions. And if you’re planning to move into a new home, working with one of the best moving companies can streamline the process.
To get a clearer picture of homeownership affordability, the research team at This Old House analyzed data from Zillow, the U.S. Census, and more to determine the annual costs of owning a home and how it impacts married couples and single-income households.
How We Determined the Cost of Homeownership
To estimate the annual cost of homeownership, we considered the following expenses:
- Mortgage payments were calculated using the following assumptions:
- An 8% down payment
- A 6.93% mortgage rate
- Annual maintenance cost was estimated as 4% of the total home value. We estimated up to 4% to account for potential hidden home costs related to maintenance and repairs. Some homeowners may need to factor in the frequency of extreme weather events (fire, wind, or water damage) or home age.
- Annual homeowner’s insurance premiums were based on estimates from Quadrant.
- Annual property tax rates were pulled from the U.S. Census.
Key Findings
- Homeownership is toughest for single women—they spend a staggering 92% of their income on housing, compared to 67% for single men and just 40% for married couples.
- Only 13% of the 145 cities analyzed have annual housing costs that fall below 30% of annual household income for married-couple households, meeting the standard threshold for affordability.
- Homeownership is most affordable in Detroit, where married households can expect to spend 19% of their annual income on annual homeownership costs.
- Detroit is the only city where single men can get close to affording a home. However, they still spend 32% of their income—above the 30% affordability threshold.
- Health diagnosing and treating practitioners have the most affordability options, with 10 cities meeting the 30% threshold. Educational professionals don’t have a single city where housing costs are at or below 30% of their income.
Single Women Face the Greatest Financial Burden
The financial burden of homeownership isn’t felt equally across household types, largely due to income disparities. We determined that homeownership costs an estimated $45,643 annually, and the impact of this expense varies significantly based on earnings.
For married couples, who have a median household income of $115,507 according to U.S. Census data, owning a home consumes around 40% of their combined earnings. Single men, who earn a median income of $67,890, face a greater strain, with 67% of their income going toward homeownership expenses.
The challenge is most severe for American women, who have a median income of $49,821. Our analysis found that single female homeowners need to spend 92% of their annual income on homeownership costs, an overwhelming financial burden that leaves little room for savings or emergency funds.
The reality of this financial gap means that single women are priced out of homeownership in most major American markets. In some cities, their total housing costs would even exceed their annual earnings, making owning a home nearly impossible without additional financial support or a second income. This imbalance underscores the role of income inequality and how it impacts single earners—especially women.
Where Can a Single Person Afford To Own a Home?
Affording a home remains a much more significant challenge for single-income households than for married couples. While just 5 out of 50 states—and 19 out of 145 cities—have home costs below 30% of the average income for married households, no state or city meets this affordability standard for single earners.
“The United States is experiencing a crisis of housing affordability for low-income renters,” says Marybeth Shinn, Cornelius Vanderbilt Chair at Vanderbilt University. “Nationally, over a quarter of all renter households spend over 50% of their income on rent, leaving little left over for food, transportation, child care, medical care, and other necessities.”
In some areas, homeownership costs far exceed the recommended income thresholds—married couples in the most expensive states spend up to 80% of their income on housing, while single men face costs as high as 126% and single women a staggering 160%.
The most affordable options for all households are in West Virginia, where homeownership costs around 25% of income for married couples, 43% for single men, and 59% for single women.
Even in the lowest-cost state, single earners still struggle to find homes within reasonable affordability limits, reinforcing the financial advantage of dual-income households in today’s housing market.
California and Hawaii rank as the most expensive states to buy a home, with the total ownership costs exceeding 80% of income for married couples and well over 100% for male and female single earners. These states have some of the highest housing costs in the country, making it nearly impossible for single-income households to buy a home without significant financial assistance or two incomes.
The Best and Worst Cities for Homeownership Costs
Beyond state-level trends, individual cities can have stark differences in expenses. Our team looked at housing costs in 145 of the most populous cities and found that Detroit stands out as the most affordable city overall. In Detroit, married couples can expect to spend around 19% of their income on homeownership, single men 32%, and single women nearly 40%.
While these figures are still high for single-income households, they’re among the lowest in the country overall, making Detroit a rare bright spot in an increasingly expensive housing market. There are no cities where homeownership costs fall below 30% of the average single woman’s income, leaving single women with two choices: stretch their budgets substantially or forgo buying a home altogether.
Patrick Luce, principal economist and adjunct professor at the University of Tampa, offers a broader perspective on the housing market challenges: “Imagine the housing market like a balance scale. On one side, you’ve got income, and on the other, you’ve got home prices, interest rates, and all those extra costs. Over the past few years, the scale has tipped heavily toward the cost side,” he says. “If we compare the housing market today to last year, many states across the U.S. are experiencing what’s called an ‘income deficit’ when it comes to buying a home. This means that with current house prices, interest rates, and income levels, people just aren’t making enough to afford a home without taking on significant financial risk.”
The least affordable city in the U.S. for married couples is Glendale, California, where owning a home and the costs associated with it can eat away 124% of a married couple’s annual income. Again, single men and women fare worse, as Glendale housing expenses exceed a staggering 200% of their respective incomes. Outside of California, Miami and New York City rank among the hardest cities to afford, whether married or single.
How do income disparities in certain areas influence home prices?
Where Can a Single Teacher, Firefighter, or Nurse Afford to Own a Home?
With high prices in so many cities, you might be wondering in what locations the typical single American can afford to buy. That will largely depend on the person’s occupation. Single healthcare professionals, such as doctors, nurses, and pharmacists, have the greatest number of affordable homeownership options, with 10 cities meeting the 30% of annual income threshold. For educators, including teachers and librarians, there isn’t a single city where annual homeownership costs fall within the recommended affordability range.
Other professions face similar challenges. Law enforcement officers have only three cities where housing costs are considered affordable. Firefighters and protective service workers face steep costs as well, with only one city—Akron, Ohio—where homeownership is feasible at 28% of their income. Detroit remains the most affordable city for many occupations, including social service workers (counselors, probation officers), educators, and those with technical occupations.
When weighing location options, essential workers must consider multiple factors beyond just housing costs. Enrique S. Pumar, Fay Boyle Endowed Professor of Sociology at Santa Clara University, explains what drives these decisions: “At the national level, most families choose a location to settle based on three criteria: accessible jobs, various support networks among families, relatives, friends, or even co-ethnics and co-nationals. However, since most localities are highly stratified, housing prices are one of the decisive factors for individuals to choose where to live,” he says. “Among the factors that people should consider when choosing a location are the crime rate in the area, the quality of the public schools, affordability, access to their workplace, and the availability of community support.”
Katrin B. Anacker, professor at George Mason University’s Schar School of Policy and Government, says that workplace flexibility has introduced new considerations: “Location still matters. People who were able to work remotely during and after the global COVID-19 pandemic were interested in access to the internet so they could work from many places,” she says. “Recently, many employers mandated a return to the office, at least part-time. Thus, access to transportation and the distance to work have increased in importance.”
The affordability gap is most evident in high-cost metropolitan areas. In Glendale, California, a firefighting supervisor can expect to spend around 425% of their annual income to buy and maintain a home each year, which highlights the extreme homeownership burdens faced by essential workers in certain regions.
Full Data
Tips for Prospective Home Buyers
Despite rising costs, homeownership is still possible with careful planning and strategic decision-making. Here are some ways buyers can improve their chances of affording a home:
- Consider smaller cities or urban areas: Major metro areas like New York and Los Angeles are often expensive, but lower-cost regions may offer better options, especially if you’re able to work remotely or in a role that can easily transfer states.
- Evaluate job location: Relocating to an area where your salary aligns better with housing costs can make buying a home more feasible.
- Plan for higher mortgage rates: With interest rates near 7%, run affordability calculations before committing to a mortgage.
- Explore homebuyer assistance programs: Many states, cities, and towns offer financial aid, grants, and incentives to reduce upfront costs.
- Work with a reliable moving company: If you’re relocating, hiring an inexpensive moving company can make the transition smoother.
“Carefully search for first-time buyer programs in your state. Shop around for mortgages; do not settle for the most available program. Capitalize on market opportunities. Seek the assistance of a trusted realtor advisor. Know your financial limits to avoid defaulting on your home,” says Pumar.
Methodology
To estimate the annual homeownership cost, we utilized data on property taxes and income from the U.S. Census American Community Survey and home values for single-family residences from Zillow. For the overall annual cost, we considered the following:
- Annual property tax rates were from the U.S. Census.
- Annual mortgage costs: We used home values from Zillow and assumed an 8% down payment and a 6.93% mortgage rate.
- Annual home maintenance was estimated as 4% of the home value to account for potential high maintenance or repair costs that homeowners may incur due to unforeseen circumstances.
- Annual homeowner’s insurance estimates were sourced from Quadrant.
We then compared the annual homeownership cost to state and city-level incomes for married couples, single male householders, and single female householders to determine if their incomes could cover annual home costs. Lastly, we examined individual occupational income from the U.S. Census to learn if certain essential occupations could afford home costs in these cities.
Questions about our study? Please contact the author here.
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