CEOWORLD Housing Affordability Index: 50 U.S. Cities Ranked for 2025

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America’s Largest Cities: Where Housing Is Most and Least Affordable – 2025 Study

The Rising Burden of Housing Costs: Housing affordability has become one of the most pressing challenges for American households — and a critical metric for executives, investors, and policymakers alike. CEOWORLD magazine’s 2025 Housing Affordability Study ranks 50 of the nation’s largest cities by comparing weighted median housing costs for homeowners and renters relative to median household income.

For financial advisors, the “28% rule” remains the rule of thumb: housing payments should not exceed 28% of gross income. Yet across much of the U.S., this benchmark is no longer realistic.

In 2024, Americans spent an average of 20.98% of their income on housing according to Census Bureau data. But in 47 of the 50 largest cities, residents pay more than that, with many exceeding the 28% threshold.

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Miami: The Epicenter of Housing Costs

Miami has emerged as the least affordable city in America for housing in 2025.

Housing-to-Income Ratio (2024): 36.02%
Median Monthly Housing Costs: $2,025 (homeowners) | $1,975 (renters)
Median Household Income: $66,337

Even though costs for homeowners slightly declined year-over-year, rents rose sharply, and with two-thirds of Miami households renting, the affordability crisis deepened. Miami now stands as the only city where more than one-third of median income is consumed by housing.

For investors and developers, the Miami data signals both opportunity and risk: a market driven by strong demand but increasingly stretched household budgets.

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El Paso: The Benchmark for Affordability

At the other end of the spectrum lies El Paso, Texas, where residents spend just 20.35% of their income on housing — the lowest among the 50 largest cities.

Weighted Median Monthly Housing Payment: $1,016
Median Household Income: $59,932
Monthly Housing Costs: $985 (renters) | $1,066 (homeowners)

El Paso reflects a model of relative balance between rental and ownership costs. For executives evaluating relocation, expansion, or workforce costs, El Paso and similar cities offer a clear affordability advantage.

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Housing Affordability in 50 U.S. Cities, 2025

City	Housing to Income Ratio (%)	Weighted Monthly Housing Payment ($)	Monthly Housing Costs – Homeowners ($)	Monthly Housing Costs – Renters ($)	Percent Homeowners (%)	Percent Renters (%)	Median Household Income ($)
Miami, Florida	36.02	1991.35	2025	1975	32.7	67.3	66337
Los Angeles, California	32.64	2237.3	2736	1958	35.9	64.1	82263
Long Beach, California	28.72	2185.17	2505	1962	41.1	58.9	91318
New York, New York	28.7	1942.45	2213	1811	32.7	67.3	81228
Oakland, California	28.43	2421.76	2957	2008	43.6	56.4	102235
Boston, Massachusetts	28.4	2314.47	2526	2196	35.9	64.1	97791
Detroit, Michigan	27.1	885.47	688	1091	51	49	39209
Baltimore, Maryland	27.04	1459.71	1582	1345	48.4	51.6	64778
Tampa, Florida	26.91	1886	1874	1898	50	50	84114
San Diego, California	26.84	2483.75	2564	2414	46.5	53.5	111032
Memphis, Tennessee	26.69	1171.78	1058	1263	44.5	55.5	52679
Houston, Texas	26.62	1427.63	1456	1408	40.9	59.1	64361
Atlanta, Georgia	25.69	1887.59	2022	1765	47.7	52.3	88165
Dallas, Texas	25.54	1582.12	1559	1599	42.2	57.8	74323
Austin, Texas	25.52	1922.85	2141	1770	41.2	58.8	90430
Portland, Oregon	25.48	1942.57	2229	1648	50.7	49.3	91478
Philadelphia, Pennsylvania	25.46	1284.1	1084	1500	51.9	48.1	60521
Denver, Colorado	25.39	1957.54	2052	1870	48.1	51.9	92504
Las Vegas, Nevada	25.39	1661.96	1642	1688	56.6	43.4	78556
Fresno, California	25.37	1575.09	1597	1552	51.3	48.7	74491
Arlington, Texas	25.24	1564.32	1538	1594	53	47	74388
Bakersfield, California	25.16	1721.51	1730	1708	61.4	38.6	82093
Jacksonville, Florida	24.86	1499.44	1450	1568	58.1	41.9	72389
Colorado Springs, Colorado	24.69	1721.88	1739	1699	57.2	42.8	83672
Columbus, Ohio	24.54	1371.98	1359	1383	45.9	54.1	67084
Fort Worth, Texas	24.34	1673.58	1705	1630	58.1	41.9	82503
Chicago, Illinois	24.27	1630.62	1797	1486	46.5	53.5	80613
Seattle, Washington	24.27	2401.28	2948	2007	41.9	58.1	118745
Milwaukee, Wisconsin	24.22	1146.1	1231	1081	43.4	56.6	56792
Washington, DC	24.13	2205.85	2603	1931	40.9	59.1	109707
Sacramento, California	24.13	1837.36	1829	1846	50.8	49.2	91387
Minneapolis, Minnesota	24.1	1560.88	1815	1340	46.5	53.5	77732
Nashville, Tennessee	23.9	1595.44	1527	1669	51.8	48.2	80090
Raleigh, North Carolina	23.83	1689.27	1718	1661	49.6	50.4	85060
San Francisco, California	23.81	2773.9	3336	2448	36.7	63.3	139801
San Antonio, Texas	23.63	1302.85	1223	1389	51.9	48.1	66176
Charlotte, North Carolina	23.39	1684.15	1649	1720	50.5	49.5	86416
Kansas City, Missouri	23.04	1343.26	1381	1292	57.6	42.4	69958
Tucson, Arizona	23.02	1160.07	1092	1235	52.4	47.6	60483
San Jose, California	22.99	2839.39	2972	2674	55.5	44.5	148226
Virginia Beach, Virginia	22.55	1776.98	1791	1753	63.1	36.9	94579
Tulsa, Oklahoma	22.48	1141.33	1182	1099	51	49	60930
Omaha, Nebraska	22.38	1336.35	1418	1229	56.8	43.2	71640
Phoenix, Arizona	22.3	1584.13	1490	1712	57.6	42.4	85246
Oklahoma City, Oklahoma	22.08	1288.58	1372	1178	57	43	70040
Indianapolis, Indiana	21.82	1216.19	1214	1219	56.2	43.8	66900
Mesa, Arizona	21.36	1523.04	1423	1708	64.9	35.1	85580
Albuquerque, New Mexico	20.54	1223.88	1222	1227	62.5	37.5	71494
Louisville, Kentucky	20.38	1142.19	1141	1144	60.3	39.7	67251
El Paso, Texas	20.35	1016.1	985	1066	61.6	38.4	59932

Cities Where Affordability Holds Steady

While most major metros exceed affordability benchmarks, several remain competitive:

Louisville, KY – 20.38%
Albuquerque, NM – 20.54%
Mesa, AZ – 21.36%
Indianapolis, IN – 21.82%

These cities remain outliers, with housing consuming less than 22% of income — making them increasingly attractive for businesses seeking lower cost-of-living environments for employees.

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Major Metros: Where Middle America Struggles

For many large cities, affordability pressures sit in the mid-20% range. Dallas (25.54%), Houston (26.62%), Philadelphia (25.46%), and Denver (25.39%) fall into this “middle tier” — above the national average but not yet at crisis levels like Miami.

These markets highlight the nuanced reality: affordability challenges are not limited to coastal cities, but widespread across the U.S.

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High-Cost Hubs: Los Angeles, New York, and Boston

Other iconic American metros also rank among the least affordable:

Los Angeles, CA: 32.64%
New York, NY: 28.70%
Boston, MA: 28.40%

In each case, median incomes fail to keep pace with housing costs. For corporations, this imbalance raises questions about employee retention, talent migration, and wage pressures.

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What’s Driving Affordability Gaps

Several systemic factors drive the widening gap between housing costs and income:

• Property Taxes and Insurance Premiums – Particularly acute in high-growth states like Florida and Texas.
• Mortgage Rates – Elevated rates continue to suppress affordability for homeowners.
• Rental Market Tightness – Supply-demand imbalances drive up rents in urban centers.
• Local Regulations and HOAs – Fees, zoning rules, and assessments contribute to upward pressure.
• Utility and Fuel Costs – Often overlooked, but significant in median monthly housing expenditures.

For wealth managers and private equity leaders, these dynamics influence both real estate investment strategies and consumer spending patterns.

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Implications for CEOs, Investors, and Policymakers

For executives and decision-makers, the 2025 housing affordability landscape has direct implications:

• Talent Attraction and Retention – Cities with high housing-to-income ratios may see outmigration of skilled labor.
• Corporate Expansion Decisions – Companies eyeing secondary markets may prioritize affordability as a competitive advantage.
• Investment Strategies – Institutional and private investors can capitalize on both scarcity-driven premium markets (e.g., Miami, Los Angeles) and growth-driven affordable hubs (e.g., El Paso, Louisville).
• Policy Considerations – Legislators face mounting pressure to balance housing supply, zoning reform, and affordability mandates.

The National Context

The U.S. housing affordability crisis is unfolding against a backdrop of generational wealth transfers, urban migration shifts, and ongoing inflationary pressures. For ultra-high-net-worth individuals (UHNWIs) and institutional investors, the trends signal where capital flows — and political debates — will concentrate in the years ahead.

Notably, the average American household remains below the 28% threshold, but nearly every major city exceeds it. This divergence between the national average and urban realities underscores why localized data — not broad national statistics — must drive executive decision-making.

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Methodology: How CEOWORLD Measured Affordability

The study ranked 50 of the largest U.S. cities by:

• Weighted Median Housing Costs – Combining homeowner and renter costs proportionally.
• Median Household Incomes – Based on U.S. Census Bureau 1-Year American Community Survey (2024).
• Housing-to-Income Ratios – Annual housing costs divided by median household income.

Homeowner costs include mortgage and home equity payments, property taxes, insurance, utilities, and HOA fees. Renter costs include contract rent plus utilities and fuels (if paid by renter).

This methodology provides an apples-to-apples comparison across markets.

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The Executive View of Housing in 2025

The CEOWORLD 2025 Housing Affordability Study reveals stark contrasts: Miami households dedicating over 36% of income to housing versus El Paso residents spending just 20.35%.

For CEOs, investors, and policymakers, the findings are more than statistics. They are indicators of workforce stability, consumer confidence, and investment opportunity.

As affordability pressures mount, cities that balance growth with accessible housing will hold a competitive edge. Meanwhile, luxury-driven markets will continue attracting global capital — but at the risk of pricing out local residents.

In today’s climate, the ability to read housing affordability trends is no longer optional. For leaders tasked with guiding billions in capital, it is an essential lens through which to view America’s economic future.

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