13 major U.S. cities where owning a home requires twice the income needed to rent
In some U.S. cities, it now takes more than twice the income to afford a median-priced home than to afford a median-priced apartment — and the gap keeps growing.
Nationwide, a recent Redfin analysis finds that U.S. homebuyers must earn $116,633 to afford such a home — 82% more than the income needed to cover the cost of a median-priced rental. The figures are based on the standard assumption that housing costs shouldn't exceed 30% of gross income, a common affordability benchmark.
The estimates reflect national and metro-level data for the three months ending in February 2025, comparing median home sale prices with median asking rents for newly listed apartments in buildings with five or more units. Homeownership calculations assume a 30-year fixed-rate mortgage with a 15% down payment and a 6.84% interest rate, and also factor in insurance and property taxes.
Since 2021, the income needed to afford a home has climbed at a much faster pace than what's needed to rent — with the gap between the two more than quadrupling. That's largely due to soaring home prices and high mortgage rates, while rent growth has mostly stalled.
"It has become increasingly challenging for American renters to make the shift to homeownership thanks to the triple whammy of rising home prices, high mortgage rates and a shortage of houses for sale," writes Redfin senior economist Elijah de la Campa.
For buyers, demand has far outpaced supply in recent years, as a pandemic-era slowdown in construction worsened an already tight housing market. With too few homes available to buyers, prices surged 43% from 2020 to 2025, per Redfin's data.
For rentals, prices have remained flat over the past two years, driven by a wave of new apartment construction that has boosted supply, according to Redfin.
In 13 of the 42 largest U.S. metro areas, the income required to afford a median-priced home is now more than double what's needed to rent a median-priced apartment.
Big cities tend to have higher home costs because they attract people for jobs and opportunity, driving up demand and pushing home prices higher — especially when supply is limited.
Here are the metros with the widest income gaps between what's required to buy and rent:
The steepest disparity is in San Jose, where buyers need to earn $408,557 annually — more than three times the income required to rent. The smallest gap is in Pittsburgh, where buyers need to earn just $66,350 to afford a home — only 14.4% more than what's required to rent.
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About Octillion Power Systems Octillion Power Systems is a U.S.-based global provider of advanced lithium-ion battery solutions for electric mobility and stationary energy storage. With over 2 million battery packs shipped worldwide, Octillion specializes in scalable, safe, and high-performance battery packs for transportation, industrial, and grid-connected applications. Visit to learn more. About Vision Marine Technologies Inc. Vision Marine Technologies Inc. (NASDAQ:VMAR) is a pioneer in marine electrification. Its flagship E-Motion™ 180E system is a fully integrated high-voltage electric outboard powertrain built for OEM adoption at scale. Vision Marine designs and manufactures electric propulsion systems and boats to transform recreational and commercial boating into a zero-emission experience. Learn more at Forward-Looking Statements Certain statements in this press release constitute 'forward-looking statements.' These statements include, but are not limited to, expectations regarding the benefits of the new patent, its impact on future product development and original equipment manufacturer integrations, and Vision Marine's competitive position. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Factors that could affect results are discussed in the Company's filings with the Securities and Exchange Commission. Vision Marine undertakes no obligation to update any forward-looking statements except as required by law. Investor & Company Contact Vision Marine Technologies Bruce Nurse – Investor Relations (303) 919-2913 bn@ Website: Twitter: @marine_vision Facebook: @VisionMarineTechnologies Instagram: @ YouTube: @VisionMarineTechnologies SOURCE: Vision Marine Technologies Inc View the original press release on ACCESS Newswire
