Here are the 5 most (and least) affordable cities in the US for housing — plus how to budget for rising costs

Core Insights - The analysis by SmartAsset ranks the 50 largest U.S. cities based on housing costs relative to median household income, highlighting affordability issues across the country [2] Housing Affordability - A poll by Redfin indicates that 44% of over 4,000 homeowners and renters have struggled to afford mortgage or rent payments, leading many to change their living situations [5] - The median sale price of a house in the U.S. was $410,800 in Q2 2025, reflecting a nearly 30% increase from $317,100 five years prior [6] - National median rent has increased by over 32% from 2020 to 2024, indicating a significant rise in rental costs [6] Budgeting and Financial Management - The average percentage of income spent on housing is 28.43%, with a weighted monthly housing payment of $2,422 and a median household income of $102,235 [8] - It is recommended that individuals spend no more than 30% of their gross income on housing, but many are exceeding this threshold due to rising costs [3][7] - The traditional budgeting model suggests allocating 50% of the budget to needs, 30% to wants, and 20% to debt repayment and savings, which may need adjustment if housing costs exceed 50% of needs [11]