ST. PETERSBURG, FL, UNITED STATES, December 19, 2025 /EINPresswire.com/ -- More than one-quarter of U.S. metropolitan areas now require household incomes exceeding $100,000 to afford a median-priced home, according to a comprehensive new study released today by EffectiveAgents.com.

The analysis of 389 metropolitan statistical areas found that 106 markets, 27 percent of all U.S. metros, have crossed the six-figure threshold, a milestone that effectively prices out the majority of American households from homeownership in these regions.

"A six-figure income used to mean you'd made it. Now in more than 100 American cities, it's just the entry ticket to buy a home. We're watching the middle class get locked out of homeownership in real time."

THE $340,000 GAP: AMERICA'S HOUSING DIVIDE

The study reveals a staggering 12.8x gap between the nation's most and least affordable housing markets.
San Jose, California tops the list at $368,861. The annual household income required to purchase a median-priced home with a 20 percent down payment while meeting standard lending requirements. At the opposite end, Pine Bluff, Arkansas requires just $28,857.
The national average stands at $93,804, placing the typical American market just below the six-figure threshold.
"The income you'd need to buy one home in San Jose could theoretically support home purchases for 13 different families in Pine Bluff. That's not a housing market, that's two entirely different economies."

THE $200,000 CLUB: WHERE ONLY TOP EARNERS CAN BUY

Eleven metropolitan areas now require annual incomes exceeding $200,000. Nine are in California:

1. San Jose, CA - $368,861
2. San Francisco, CA - $268,428
3. Santa Cruz, CA - $266,158
4. Santa Maria, CA - $231,114
5. Los Angeles, CA - $226,566
6. Kahului, HI - $224,125
7. San Diego, CA - $220,958
8. Napa, CA - $216,999
9. San Luis Obispo, CA - $213,899
10. Oxnard, CA - $210,001
11. Salinas, CA - $200,578

MAJOR METROS CROSSING THE THRESHOLD

Several of America's largest and fastest-growing metropolitan areas have recently crossed or are hovering just above the $100,000 income threshold—a troubling indicator for buyers in these markets:

Metro Area Required Income
Las Vegas, NV $101,923
Philadelphia, PA $102,121
Minneapolis, MN $102,358
Dallas, TX $102,590
Orlando, FL $103,465
Phoenix, AZ $104,918
Nashville, TN $108,684
Raleigh, NC $109,599

These "tipping point" markets represent regions where middle-class homeownership is becoming increasingly difficult. A modest rise in home prices or interest rates could push affordability even further out of reach.

STATE-BY-STATE BREAKDOWN

California dominates the unaffordability rankings, accounting for nearly 20 percent of all six-figure metros nationwide:
• California - 21 metros requiring $100K+
• Washington - 10 metros
• Florida - 7 metros
• Oregon - 7 metros
• Colorado - 6 metros
• Utah - 5 metros

WHERE HOMEOWNERSHIP REMAINS ACCESSIBLE

The study also identifies 283 metros, 73 percent of those analyzed, where households earning less than $100,000 can still afford a median-priced home.
The 10 most affordable markets in America:

1. Pine Bluff, AR - $28,857
2. Johnstown, PA - $31,956
3. Danville, IL - $32,036
4. Weirton, WV - $35,589
5. Beckley, WV - $37,538
6. Decatur, IL - $37,676
7. Wheeling, WV - $37,744
8. Charleston, WV - $38,278
9. Huntington, WV - $42,434
10. Enid, OK - $42,518

These markets—concentrated in the Midwest, Appalachia, and parts of the South—offer entry points for households priced out of coastal and Sun Belt regions, though many face challenges including limited job markets.

WHAT THIS MEANS FOR 2026 BUYERS

"Buyers heading into 2026 face a bifurcated market. In high-cost metros, you're increasingly reliant on dual six-figure incomes, family wealth, or remote work arrangements. In affordable markets, the American Dream of homeownership is still very much alive—but you may need to rethink where you're looking."

The study suggests three distinct buyer realities heading into 2026:

•HIGH-COST METROS ($150K+ income required): Buyers increasingly depend on dual high incomes, substantial family wealth, or remote work that allows coastal salaries with interior living costs.
•THRESHOLD METROS ($100K-$150K required): These markets remain accessible to professional dual-income households, but first-time buyers without significant savings face steep barriers.
•AFFORDABLE METROS (under $100K required): Homeownership remains accessible to a broader range of incomes, offering alternatives for buyers willing to prioritize affordability over location.

METHODOLOGY

EffectiveAgents.com analyzed 389 U.S. metropolitan statistical areas to calculate the household income required to purchase a median-priced home. The study assumed:

• 20 percent down payment (no private mortgage insurance)
• 28 percent front-end debt-to-income ratio (consistent with conventional lending standards)
• Housing costs including principal, interest, property taxes, and homeowners insurance
• Current prevailing mortgage rates

All figures represent the minimum gross household income required to qualify for a mortgage on a median-priced home under standard lending criteria.
The complete rankings of all 389 metros and an interactive search tool are available at: https://www.effectiveagents.com/resources/how-much-income-do-you-need-to-buy-a-home-search-389-us-cities
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ABOUT EFFECTIVEAGENTS.COM

EffectiveAgents.com is a data-driven real estate platform that helps home buyers and sellers connect with top-performing agents based on verified transaction data—not paid advertising or reviews. The company analyzes millions of real estate transactions to identify agents with proven track records of success, providing consumers with objective, performance-based recommendations.
For more information, visit https://www.effectiveagents.com

EDITOR'S NOTES:

• High-resolution graphics and data visualizations available upon request
• Spokesperson available for interviews
• Complete data set available for download
• City-specific data available for localized coverage

Media Contact:

EffectiveAgents.com
[email protected]
1(855) 472-0275

Kyle Klement
EffectiveAgents.com
[email protected]
1(855)472-9275

Kyle Klement
EffectiveAgents.com
+1 8554729275
email us here
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