Housing affordability is a constant issue faced by working-class renters and homebuyers in recent years. Despite rising home prices and mortgage rates, online lender NetCredit highlighted two major cities with a glimmer of hope for average earners seeking affordable housing in 2025.
NetCredit’s released an analysis this week of the 100 most populous cities in the U.S. The online lender filtered publicly available Zillow listings for single-family homes, townhomes, condominiums and co-ops. To identify the most affordable listings, NetCredit balanced local and national average household incomes against U.S. Bank‘s threshold for affordable housing payments — 28% of monthly income. The national average income is $74,755, according to NetCredit.
The No. 1 city for affordable housing options is Toledo, Ohio, where 53% of available properties are considered affordable to the average resident. Detroit follows close behind at 52.9% of available listings. Detroit also had the highest share of affordable properties based on the national average income (77.6%).
The eight cities that followed 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%).
NetCredit attributes Toledo’s high share of affordable listings to recent population declines. Ohio is projected to experience statewide population declines in 74 of 88 counties over the next 25 years, according to the Ohio Department of Development. NetCredit also notes that “down payments on home purchases in Ohio are among the lowest in any state.”
Detroit’s affordability stems from a different source. NetCredit reported that Detroit has received $1 billion in investments since 2019 to benefit senior and low-income homebuyers. Detroit Mayor Mike Duggan has expressed intentions to invest in the city’s housing development efforts for years to come.
Despite increased affordability in some cities, other metro areas sit at the opposite end of the spectrum. NetCredit identified nine cities with the lowest shares of affordable homes and five of these are in California. In Fremont, Long Beach, Oakland, San Jose and San Ana, none of the available listings were considered affordable to the average local earner.
Arizona also had three cities with little to no affordable housing options for average-income buyers. NetCredit referenced a recent report from Arizona State University that highlighted a 72% increase in statewide rent prices between 2010 and 2022, alongside a home-price increase of 57% between 2019 and 2023.
Although affordability issues persist in some areas, Redfin recently reported that housing affordability improved slightly in 2024, ending a multiyear cycle. Still, as policy changes take place and income trends shift, this silver lining could be short-lived.
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