St. Louis Suburbs Lead the Nation in Home Affordability

The analysis, which examined median incomes and home sale prices across nearly every U.S. city from January to November 2025, highlighted several key trends:

These figures starkly contrast the pandemic-era housing boom, during which homes sold rapidly due to historically low mortgage rates. The current market is characterized by high prices and decreased buyer activity, with many potential sellers hesitating to list their homes.

The report emphasizes that while affordability is a significant concern, the reality in many of these affordable cities is complex. For instance, the low housing costs in Bellefontaine Neighbors and the broader North St. Louis area are partly a result of decades of economic disinvestment and discriminatory housing policies. This results in a significant income disparity and fewer job opportunities for residents, perpetuating a cycle that keeps housing prices low.

Asad Khan, a senior economist at Redfin, noted, “Affordability is top of mind for many people today, as rising costs have left younger generations feeling like homeownership is just a pipe dream.” He highlighted that while some areas are financially accessible, the broader economic challenges can make homeownership elusive for many.

The analysis revealed that most of the most affordable cities are concentrated in the Midwest and Southern U.S., particularly in the Rust Belt. These regions typically feature older housing stock, particularly in cities like Detroit, which keeps prices down. Every city in the top 50 listed has a median sale price near or below $300,000, making homeownership more attainable for local households on paper.

Additionally, Austin, Texas, once a pandemic boomtown, has emerged as one of the most affordable markets as well. The city's housing market has cooled significantly since its peak in 2021, as many pandemic-era transplants have relocated, leading to an inventory surplus.

Looking ahead, Redfin anticipates that housing affordability may gradually improve in 2026, as wage growth potentially outpaces rising housing costs for the first time since the Great Recession. Khan pointed out, “Rising wages and declining costs may bring some life back to the market in 2026, but until homebuilding catches up to years of unmet demand, affordability will remain a challenge.”

He further emphasized the need for supportive measures to facilitate homebuying, especially for younger generations, including easing homebuilding regulations and providing financial assistance to underserved populations.

As Rocket Companies continues to innovate within the real estate sector through Redfin, the findings from this report underscore the pressing need for affordable housing solutions in the U.S. The contrast between the current market challenges and the potential for future improvements paints a complex picture of the American housing landscape. With strategic efforts and a focus on accessibility, the dream of homeownership may become a reality for many families in the years to come.