In the challenging landscape of housing affordability for working-class individuals, there are few opportunities that offer hope. However, online lender NetCredit recently identified two major cities that provide a glimmer of possibility for average earners in search of affordable housing in 2025.
NetCredit conducted an analysis of the 100 most populous cities in the U.S. The online lender sifted through publicly available Zillow listings for single-family homes, townhomes, condominiums, and co-ops. By comparing local and national average household incomes against U.S. Bank’s threshold for affordable housing payments (28% of monthly income), NetCredit pinpointed the most affordable listings. According to NetCredit, the national average income stands at $74,755.
Top the list for affordable housing options is Toledo, Ohio, where 53% of available properties are considered affordable to the average resident. Following closely behind is Detroit, with 52.9% of available listings marked as affordable. Detroit also boasts the highest share of affordable properties based on the national average income, standing at 77.6%.
Other cities that ranked high in terms of local earner affordability include Charleston, West Virginia (49.7%); Jackson, Mississippi (49.7%); Baltimore (32.1%); Cleveland (31%); St. Louis (30.8%); Memphis, Tennessee (30.1%); Kansas City, Kansas (25.6%); and Little Rock, Arkansas (25.5%).
The factors contributing to Toledo’s high share of affordable listings stem from recent population declines in the state of Ohio. The Ohio Department of Development projects statewide population decreases in 74 of 88 counties over the next 25 years. On the other hand, Detroit’s affordability can be attributed to a $1 billion investment since 2019 dedicated to benefiting seniors and low-income homebuyers. Detroit Mayor Mike Duggan has expressed his commitment to furthering housing development efforts in the city for years to come.
While some cities showcase improved affordability, others face significant challenges in providing affordable housing options. NetCredit identified nine cities with the lowest shares of affordable homes, with five of them located in California. Fremont, Long Beach, Oakland, San Jose, and Santa Ana had none of the available listings considered affordable for the average local earner.
Additionally, Arizona also presents struggles in offering affordable housing, with three cities lacking viable options for average-income buyers. A recent report from Arizona State University revealed a 72% increase in statewide rent prices between 2010 and 2022, alongside a home price surge of 57% between 2019 and 2023.
Although Redfin reported a slight improvement in housing affordability in 2024, putting an end to a multiyear cycle, the future remains uncertain. As policy changes and income trends fluctuate, the progress made in affordable housing could be short-lived.
In this ever-evolving landscape of housing affordability, it is crucial for policymakers, communities, and individuals to work together to ensure that decent and affordable housing remains within reach for all. It is a collective effort to address these challenges head-on and create a sustainable future where housing is not a privilege but a basic human right.
