22 Cities Where the Middle Class Can Afford Less Than One-Third of Homes on the Market
Financially, it would be nice if the housing market and average incomes could meet Americans in the middle class. Yet, for millions of Americans, achieving the dream of homeownership feels more out of reach than ever. Rising home prices, stubborn mortgage rates and limited housing inventory have created a challenging market, especially for middle-class families trying to buy homes.
MoneyLion conducted research, and the data shows that in some cities, the affordability gap has widened to the point that the typical middle-class household can afford less than one-third of the homes currently on the market, making the search for an affordable home feel like an uphill battle. There were many other takeaways as well.
Key Findings
Seven cities on this list (six of which are in California) have an average home value over $1 million.
Those on the higher end of the middle classes in Irvine, California; San Francisco; and San Jose, California, have housing budgets over $80,000.
In Glendale, Arizona; Miami; and Newark, New Jersey, the minimum middle-class incomes are less than $50,000.
Here are 22 cities where middle-income buyers can afford less than one-third of available homes, ranked from the highest budget deficit after mortgage for lowest-tier homes.
1. Irvine, California
Lowest-tier home average value for June 2026: $1,044,470
Lowest-tier home average annual mortgage cost: $71,670
Median middle-class household income: $136,719
Median middle-class housing budget: $41,016
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$30,655
2. Anaheim, California
Lowest-tier home average value for June 2026: $768,083
Lowest-tier home average annual mortgage cost: $52,705
Median middle-class household income: $95,227
Median middle-class housing budget: $28,568
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$24,137
3. Los Angeles
Lowest-tier home average value for June 2026: $662,957
Lowest-tier home average annual mortgage cost: $45,491
Median middle-class household income: $81,939
Median middle-class housing budget: $24,582
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$20,910
4. San Francisco
Lowest-tier home average value for June 2026: $913,649
Lowest-tier home average annual mortgage cost: $62,694
Median middle-class household income: $140,970
Median middle-class housing budget: $42,291
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$20,403
5. San Jose, California
Lowest-tier home average value for June 2026: $928,894
Lowest-tier home average annual mortgage cost: $63,740
Median middle-class household income: $146,427
Median middle-class housing budget: $43,928
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$19,812
6. Long Beach, California
Lowest-tier home average value for June 2026: $587,973
Lowest-tier home average annual mortgage cost: $40,346
Median middle-class household income: $87,430
Median middle-class housing budget: $26,229
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$14,117
7. Santa Ana, California
Lowest-tier home average value for June 2026: $607,664
Lowest-tier home average annual mortgage cost: $41,697
Median middle-class household income: $93,999
Median middle-class housing budget: $28,200
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$13,498
8. San Diego
Lowest-tier home average value for June 2026: $660,602
Lowest-tier home average annual mortgage cost: $45,330
Median middle-class household income: $108,077
Median middle-class housing budget: $32,423
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$12,907
9. Chula Vista, California
Lowest-tier home average value for June 2026: $651,215
Lowest-tier home average annual mortgage cost: $44,686
Median middle-class household income: $108,032
Median middle-class housing budget: $32,410
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$12,276
10. Newark, New Jersey
Lowest-tier home average value for June 2026: $386,067
Lowest-tier home average annual mortgage cost: $26,491
Median middle-class household income: $52,060
Median middle-class housing budget: $15,618
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$10,873
11. New York
Lowest-tier home average value for June 2026: $505,250
Lowest-tier home average annual mortgage cost: $34,670
Median middle-class household income: $80,483
Median middle-class housing budget: $24,145
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$10,525
12. Riverside, California
Lowest-tier home average value for June 2026: $544,639
Lowest-tier home average annual mortgage cost: $37,373
Median middle-class household income: $91,045
Median middle-class housing budget: $27,314
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$10,059
13. Boston
Lowest-tier home average value for June 2026: $561,002
Lowest-tier home average annual mortgage cost: $38,495
Median middle-class household income: $97,344
Median middle-class housing budget: $29,203
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$9,292
14. Miami
Lowest-tier home average value for June 2026: $352,438
Lowest-tier home average annual mortgage cost: $24,184
Median middle-class household income: $62,462
Median middle-class housing budget: $18,739
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$5,445
15. Reno, Nevada
Lowest-tier home average value for June 2026: $398,729
Lowest-tier home average annual mortgage cost: $27,360
Median middle-class household income: $80,760
Median middle-class housing budget: $24,228
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$3,132
16. Santa Clarita, California
Lowest-tier home average value for June 2026: $591,050
Lowest-tier home average annual mortgage cost: $40,557
Median middle-class household income: $123,062
Median middle-class housing budget: $36,919
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$3,639
17. Boise City, Idaho
Lowest-tier home average value for June 2026: $401,603
Lowest-tier home average annual mortgage cost: $27,558
Median middle-class household income: $83,904
Median middle-class housing budget: $25,171
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$2,386
18. Oakland, California
Lowest-tier home average value for June 2026: $476,713
Lowest-tier home average annual mortgage cost: $32,712
Median middle-class household income: $101,600
Median middle-class housing budget: $30,480
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$2,232
19. Jersey City, New Jersey
Lowest-tier home average value for June 2026: $452,800
Lowest-tier home average annual mortgage cost: $31,071
Median middle-class household income: $97,710
Median middle-class housing budget: $29,313
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$1,758
20. Seattle
Lowest-tier home average value for June 2026: $564,373
Lowest-tier home average annual mortgage cost: $38,727
Median middle-class household income: $123,860
Median middle-class housing budget: $37,158
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$1,569
21. Urban Honolulu, Hawaii
Lowest-tier home average value for June 2026: $383,416
Lowest-tier home average annual mortgage cost: $26,310
Median middle-class household income: $86,504
Median middle-class housing budget: $25,951
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$358
22. Glendale, Arizona
Lowest-tier home average value for June 2026: $322,238
Lowest-tier home average annual mortgage cost: $22,112
Median middle-class household income: $73,530
Median middle-class housing budget: $22,059
Median middle-class housing budget deficit after mortgage for lowest-tier home: -$53
Methodology: For this study, MoneyLion analyzed cities across the U.S. to find the places where the middle class can afford less than one-third of the homes in their market. Using the U.S. Census ACS, the top 100 cities by population were identified along with their total households and median household income. Using the definition of middle class from PewResearchCenter that states that middle class income is two-thirds to double the median income, the middle-class income range for each city was calculated. Using the Zillow Home Value Index, the average value for a single-family home and the average value for a bottom-tier home were both identified for each city. Assuming a 10% down payment and using the national average 30-year fixed mortgage rate of 6.55%, as sourced from the Federal Reserve Economic Data on 7/20/26, the average mortgage can be calculated for each city. Using the finance rule that states that housing costs should not exceed 30% of household income, a 30% housing budget was calculated from each of the middle-class income levels: minimum, median, and maximum. Using the housing budgets and the average mortgage for both home types, the housing budget surplus or deficit was calculated for each city. The housing budget as a percentage of the annual mortgage was also calculated for each middle-class income level. The cities were sorted to show the least amount of mortgage covered by the housing budget, showcasing the cities where the middle class can afford less than one-third of homes on the market. All data is up to date as of July 20, 2026.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice. The research, writing and data analysis were handled by our editorial team. The formatting of the data alone was created with the assistance of artificial intelligence and reviewed by our editorial team for accuracy; however, AI-generated content may be inaccurate, incomplete, or outdated. You should independently verify important information through reliable sources before making any decisions based on this content.