For years, homeownership has been one of the strongest symbols of financial stability in America. But in 2025, that dream is becoming increasingly difficult to reach not just for middle-income households, but even for many upper-middle-class families who, in theory, should be more than capable of affording a typical home.
According to a recent analysis highlighted by MSN, there are 15 major U.S. cities where even upper-middle-class earners cannot qualify for or comfortably afford the median-priced home.
This growing list paints a clear picture of a housing market stretched to its limits, where incomes can’t keep up with soaring home prices.
Why Even Upper-Middle-Class Buyers Are Struggling
The affordability crunch isn’t happening in a vacuum. Several powerful forces have collided:
1. Home Prices Have Outrun Wage Growth
In many cities, home values have risen faster than local incomes over the past decade. Even individuals earning well above the median find themselves squeezed out of the market because lending standards and debt-to-income ratios don’t align with modern prices.
2. Inventory Remains Historically Low
A shortage of available homes especially affordable, entry-level units keeps prices elevated. Permitting delays, zoning restrictions, and high construction costs have all contributed to the supply gap.
3. High Interest Rates Add Another Layer of Pressure
Even when buyers can afford the sticker price, inflated mortgage rates mean monthly payments are hundreds or even thousands of dollars higher than they would have been a few years ago.
4. Job Growth Is Concentrated in Expensive Cities
Many of the cities experiencing the sharpest affordability problems are also economic powerhouses. This draws more workers, drives up demand, and pushes housing costs further out of reach.
The 15 Cities Where Upper-Middle-Class Housing Is Out of Reach
The MSN-featured analysis highlights cities where typical homes cost so much that even households with incomes well above the national median cannot reasonably afford to buy.
Some standout markets include:
San Jose, California
Often topping the list of America’s least-affordable cities, San Jose’s median home prices push well above $1.5–$2 million. Even families earning high six-figure incomes struggle to meet lending requirements or save for massive down payments.
Anaheim, California
Near Disneyland and central to Southern California’s entertainment and tourism economy, Anaheim’s real estate boom has priced out even many long-term residents.
Los Angeles, California
A city known for opportunity and equally known for sky-high housing prices. Limited land, restrictive zoning, and global investor interest intensify competition.
Other cities likely on the list include:
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San Francisco, CA
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San Diego, CA
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Honolulu, HI
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Miami, FL
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New York, NY
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Boston, MA
Each of these markets shares the same core issue: demand dramatically exceeds supply.
How This Affordability Crisis Impacts Everyday Americans
The ripple effects of unaffordable homes stretch far beyond the real estate market:
1. Delayed Homeownership
Many upper-middle-class families are postponing buying a home in hopes the market will stabilize but prices continue to climb.
2. Increased Long-Term Renting
Renters who would have considered buying are now staying in rentals longer, tightening rental markets and pushing rents higher.
3. Migration to More Affordable Regions
Families are relocating to states with lower housing costs such as Texas, Arizona, Nevada, Idaho, and parts of the Midwest.
4. Slowing Wealth Accumulation
Homeownership has long been a primary pathway to generational wealth. Without it, many Americans lose access to a significant long-term financial asset.
What Needs to Change?
Experts agree that the affordability crisis requires bold and comprehensive solutions:
Increase Housing Supply
Cities must incentivize the construction of mid-priced and entry-level homes through zoning reform, streamlined permits, and reduced construction barriers.
Expand Down Payment Assistance
Programs that help buyers overcome upfront costs could make homeownership more attainable.
Encourage Higher-Density Development
Modern housing demands require more multifamily buildings, accessory dwelling units (ADUs), and mixed-use communities.
Address Wage Stagnation
If real wage growth continues to lag behind housing inflation, affordability will only worsen.
A Market at a Crossroads
The fact that even upper-middle-class earners can’t buy a typical home in many cities is a clear warning sign. Without meaningful intervention, homeownership risks becoming a luxury rather than a milestone for everyday working families.
As the market continues to evolve, staying informed is essential whether you’re a buyer, renter, investor, or real estate professional navigating a rapidly changing landscape.