The 30% rule—keeping mortgage payments to no more than 30% of monthly income—is becoming harder to follow, according to a new Realtor.com report.
Only three of the 50 largest U.S. metro areas remain affordable enough for median-income households to meet that guideline. Realtor.com found that only three major U.S. metro areas—Pittsburgh, Detroit, and St. Louis—still meet the 30% mortgage rule, based on a 20% down payment and May’s 6.82% average mortgage rate, including taxes and insurance.
In Pittsburgh, where the median income is $72,935, buyers would spend about 27.4% of their income—or $19,970 annually—on a $249,900 home. Detroit and St. Louis had similar affordability, with median incomes of $72,493 and $79,869, respectively. In Detroit-Warren-Dearborn, buyers would spend 29.8% of their $72,493 median income on a $270,000 home, with annual costs around $21,576, per Realtor.com. In St. Louis, households can cover median home costs using exactly 30% of their $79,869 income.
Realtor.com Chief Economist Danielle Hale said a few Midwestern markets still offer affordable homeownership for median-income buyers with a 20% down payment. Still, most large markets remain out of reach without major shifts in housing supply or interest rates. She noted that while incomes have grown, homebuying costs have risen even faster, making affordability a challenge nationwide.
Realtor.com also found that, on average, U.S. households need 44.6% of their income to afford a median-priced home. In some metros, the burden is much higher—104% in Los Angeles, 66.9% in New York, and 64.3% in Boston. A separate report found only 30% of the 100 largest metro areas are nearing balanced housing affordability, while 44% remain misaligned and 26% continue to worsen. Despite rising costs, 75% of U.S. adults still view homeownership as part of the American dream. The national homeownership rate stood at 65.1% in early 2025.
