If it feels like buying a home in a major city is unaffordable, that’s because it most likely is if you’re following a popular budgeting rule of thumb. The “30% rule” states that you should spend roughly 30% or less of your pretax income on housing to leave room for other non-negotiables in your budget.
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Yet in 47 of the 50 major U.S. metros, the monthly cost of owning a median-priced home is more than 30% of the area’s median household income, according to a new Realtor.com report. (The analysis assumed a 20% down payment and a typical 30-year fixed mortgage rate of 6.82%.)
Here’s a look at the only three major U.S. metro areas where the average household can afford the costs of owning a typical home.
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Pittsburgh
Median home list price (May 2025): $249,900
Annual mortgage payment + tax and insurance: $19,970
Median household income: $72,935
% of income needed to cover housing costs: 27.4%
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Detroit-Warren-Dearborn, Michigan
Median home list price (May 2025): $270,000
Annual mortgage payment + tax and insurance: $21,576
Median household income: $72,493
% of income needed to cover housing costs: 29.8%
St. Louis, Missouri-Illinois
Median home list price (May 2025): $299,900
Annual mortgage payment + tax and insurance: $23,966
Median household income: $79,869
% of income needed to cover housing costs: 30%
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This article originally appeared on GOBankingRates.com: These Are the Only 3 US Cities With Affordable Homes, According to the 30% Rule
