Housing News

Where Homebuyers Are Getting the Most for Their Money in Today’s Housing Market

In today’s competitive housing market, a low six-figure salary can make buying a home feel nearly impossible in some parts of the country. In others, that salary might open up an abundance of options.

The good news is that more housing markets are offering homes that locals can afford, according to new data from the National Association of Realtors (NAR). The group created a score that compares local home list prices to incomes to figure out if homes are priced right for residents.

NAR’s national Listing-Income Alignment Score climbed to 74.9% in March 2026, up from a low of 57.4% in 2023. That means the typical household can now afford a larger share of homes on the market than just a few years ago.

That’s partially due to more homes going up for sale.

However, affordability still has a long way to go before returning to pre-pandemic norms.

“The key takeaway is that increasing [housing] supply alone will not be enough to restore normal market activity,” wrote New American Funding’s Principal Analyst Ryan Schoen in a new NAF Insights report.

“A recovery will depend on both expanding overall inventory and improving the alignment between home prices and household incomes, especially in entry-level and middle-market segments,” Schoen wrote.

For homebuyers with tight budgets, location can be just as important as income.

Where homebuyers are getting the most home for their money

Some of the best opportunities for homebuyers are in places that rarely make national housing headlines.

Midwest metropolitan areas, in particular, scored well. Four metros in Ohio, Toledo, Akron, Youngstown, and Dayton, plus Detroit ranked among the nation’s most affordable housing markets when comparing local incomes with available homes for sale.

(Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)

In these areas, buyers can more easily find homes within their budgets.

A household earning $200,000 can afford almost 96% of homes in the Toledo metro, according to NAR. In many pricier metros, even top earners struggle to find affordable homes.

Buyers looking for value may also find opportunities in select South and Mountain West metros.

If buyers look beyond trendy markets along the coasts, these places offer rare affordability, more homes for sale, and often less competition.

Where homebuyers still face the biggest squeeze

The story looks very different in many of the country’s largest and most expensive housing markets.

Metros including Los Angeles, New York City, San Francisco, Boston, and Miami continue to show some of the biggest mismatches between local incomes and home prices.

In these areas, lower- and middle-income households face significant challenges finding affordable homes. High-cost coastal areas are especially tough for first-time and middle-income buyers.

In Los Angeles, a $200,000 income only makes 35.2% of homes affordable, compared to nearly every listing in Toledo.

That affordability gap helps explain why more homebuyers are broadening their search, delaying a purchase, or considering lower-cost areas.

What homebuyers should do now to find an affordable home

For homebuyers feeling squeezed, experts say local affordability may matter more than what’s happening in the broader housing market.

Instead of focusing solely on mortgage interest rates or broad market trends, homebuyers may want to compare how far their income stretches in different places before deciding where to buy. Looking beyond expensive urban cores or considering overlooked Midwest areas could present more affordable options.

Buyers in pricier markets may also benefit from patience as more homes slowly come onto the market.

For frustrated homebuyers, affordability challenges are far from over. But in some local housing markets, especially across the Midwest, buyers may finally be finding a little more breathing room.