It’s an expensive time to buy a home: the average home sales price in the second quarter of 2025 was $512,800, according to the Federal Reserve Bank of St. Louis.
That’s up 38% from the second quarter of 2020, when the average home went for $383,300. And it’s much different than 1980, when you could buy a home for $73,600 on average.
From 1980 to 2025, the median home sales price has increased by 544%. From 2020 to 2022 alone, when pandemic home-buying peaked, the median home sales price went up 46%.
Rising interest rates haven’t softened the blow. The average 30-year fixed mortgage rate was 2.65% in January of 2021; this May, it was 6.81%.
Wages haven’t increased at the same pace. In 1985, the median household earned $23,620 annually, and the median home cost $82,800, or 3.5x income. Today, the median household earns $83,150, and the median home price is $416,900, or 5x income. In some locations, the gap is much more pronounced. In LA, the median home price is 12.5x median household income. In New York, it’s 9.8x.
It is still possible to find relatively affordable housing in some areas, though. In West Virginia, the typical home value is $170,514, or 48% of the typical U.S. price. In Mississippi, it’s $190,755, or 53% of the typical U.S. price. In West Virginia, the typical home value is $170,514, or 48% of the typical U.S. price. In Mississippi, it’s $190,755, or 53% of the typical U.S. price.
The slideshow above highlights 10 cities with affordable homes, according to WalletHub.
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