CEOWORLD Housing Affordability Index: 50 U.S. Cities Ranked for 2025

America’s Largest Cities: Where Housing Is Most and Least Affordable – 2025 Study

The Rising Burden of Housing Costs: Housing affordability has become one of the most pressing challenges for American households — and a critical metric for executives, investors, and policymakers alike. CEOWORLD magazine’s 2025 Housing Affordability Study ranks 50 of the nation’s largest cities by comparing weighted median housing costs for homeowners and renters relative to median household income.

For financial advisors, the “28% rule” remains the rule of thumb: housing payments should not exceed 28% of gross income. Yet across much of the U.S., this benchmark is no longer realistic.

In 2024, Americans spent an average of 20.98% of their income on housing according to Census Bureau data. But in 47 of the 50 largest cities, residents pay more than that, with many exceeding the 28% threshold.

Miami: The Epicenter of Housing Costs

Miami has emerged as the least affordable city in America for housing in 2025.

Housing-to-Income Ratio (2024): 36.02%
Median Monthly Housing Costs: $2,025 (homeowners) | $1,975 (renters)
Median Household Income: $66,337

Even though costs for homeowners slightly declined year-over-year, rents rose sharply, and with two-thirds of Miami households renting, the affordability crisis deepened. Miami now stands as the only city where more than one-third of median income is consumed by housing.

For investors and developers, the Miami data signals both opportunity and risk: a market driven by strong demand but increasingly stretched household budgets.

El Paso: The Benchmark for Affordability

At the other end of the spectrum lies El Paso, Texas, where residents spend just 20.35% of their income on housing — the lowest among the 50 largest cities.

Weighted Median Monthly Housing Payment: $1,016
Median Household Income: $59,932
Monthly Housing Costs: $985 (renters) | $1,066 (homeowners)

El Paso reflects a model of relative balance between rental and ownership costs. For executives evaluating relocation, expansion, or workforce costs, El Paso and similar cities offer a clear affordability advantage.

Housing Affordability in 50 U.S. Cities, 2025

Cities Where Affordability Holds Steady

While most major metros exceed affordability benchmarks, several remain competitive:

Louisville, KY – 20.38%
Albuquerque, NM – 20.54%
Mesa, AZ – 21.36%
Indianapolis, IN – 21.82%

These cities remain outliers, with housing consuming less than 22% of income — making them increasingly attractive for businesses seeking lower cost-of-living environments for employees.

Major Metros: Where Middle America Struggles

For many large cities, affordability pressures sit in the mid-20% range. Dallas (25.54%), Houston (26.62%), Philadelphia (25.46%), and Denver (25.39%) fall into this “middle tier” — above the national average but not yet at crisis levels like Miami.

These markets highlight the nuanced reality: affordability challenges are not limited to coastal cities, but widespread across the U.S.

High-Cost Hubs: Los Angeles, New York, and Boston

Other iconic American metros also rank among the least affordable:

Los Angeles, CA: 32.64%
New York, NY: 28.70%
Boston, MA: 28.40%

In each case, median incomes fail to keep pace with housing costs. For corporations, this imbalance raises questions about employee retention, talent migration, and wage pressures.

What’s Driving Affordability Gaps

Several systemic factors drive the widening gap between housing costs and income:

• Property Taxes and Insurance Premiums – Particularly acute in high-growth states like Florida and Texas.
• Mortgage Rates – Elevated rates continue to suppress affordability for homeowners.
• Rental Market Tightness – Supply-demand imbalances drive up rents in urban centers.
• Local Regulations and HOAs – Fees, zoning rules, and assessments contribute to upward pressure.
• Utility and Fuel Costs – Often overlooked, but significant in median monthly housing expenditures.

For wealth managers and private equity leaders, these dynamics influence both real estate investment strategies and consumer spending patterns.

Implications for CEOs, Investors, and Policymakers

For executives and decision-makers, the 2025 housing affordability landscape has direct implications:

• Talent Attraction and Retention – Cities with high housing-to-income ratios may see outmigration of skilled labor.
• Corporate Expansion Decisions – Companies eyeing secondary markets may prioritize affordability as a competitive advantage.
• Investment Strategies – Institutional and private investors can capitalize on both scarcity-driven premium markets (e.g., Miami, Los Angeles) and growth-driven affordable hubs (e.g., El Paso, Louisville).
• Policy Considerations – Legislators face mounting pressure to balance housing supply, zoning reform, and affordability mandates.

The National Context

The U.S. housing affordability crisis is unfolding against a backdrop of generational wealth transfers, urban migration shifts, and ongoing inflationary pressures. For ultra-high-net-worth individuals (UHNWIs) and institutional investors, the trends signal where capital flows — and political debates — will concentrate in the years ahead.

Notably, the average American household remains below the 28% threshold, but nearly every major city exceeds it. This divergence between the national average and urban realities underscores why localized data — not broad national statistics — must drive executive decision-making.

Methodology: How CEOWORLD Measured Affordability

The study ranked 50 of the largest U.S. cities by:

• Weighted Median Housing Costs – Combining homeowner and renter costs proportionally.
• Median Household Incomes – Based on U.S. Census Bureau 1-Year American Community Survey (2024).
• Housing-to-Income Ratios – Annual housing costs divided by median household income.

Homeowner costs include mortgage and home equity payments, property taxes, insurance, utilities, and HOA fees. Renter costs include contract rent plus utilities and fuels (if paid by renter).

This methodology provides an apples-to-apples comparison across markets.

The Executive View of Housing in 2025

The CEOWORLD 2025 Housing Affordability Study reveals stark contrasts: Miami households dedicating over 36% of income to housing versus El Paso residents spending just 20.35%.

For CEOs, investors, and policymakers, the findings are more than statistics. They are indicators of workforce stability, consumer confidence, and investment opportunity.

As affordability pressures mount, cities that balance growth with accessible housing will hold a competitive edge. Meanwhile, luxury-driven markets will continue attracting global capital — but at the risk of pricing out local residents.

In today’s climate, the ability to read housing affordability trends is no longer optional. For leaders tasked with guiding billions in capital, it is an essential lens through which to view America’s economic future.

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