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Cities With the Most and Least Affordable Mortgages

Home prices continue to rise, but wages? Not so much. This is putting greater financial stress on homeowners

In six cities in the U.S., mortgage payments take up less than 10% of homeowners' income. But in 53 of the nation's largest cities, home prices are increasing faster than wages. 

The disparity between rising home prices and not-so-rising wages means that mortgages eat up more of homeowners’ hard earned money each year.

A study by, an international real estate search portal, shows that a middling increase in incomes is no match for skyrocketing home prices in the 100 largest U.S. housing markets.

The rule of thumb is that a mortgage shouldn't take up more than 28% of your income. But in Honolulu and Los Angeles, homeowners are paying a whopping 41%. There are 15 cities on this list where the average cost of a mortgage exceeds 28%, placing a greater stress on homebuyers, who would need to earn at least $10,000 more in Seattle, and as much as $43,567 more in a pricey city like San Francisco, according to Point2.

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To rank the mortgage affordability of the 100 most populous cities in the U.S., Point2 used data from the U.S. Census Bureau and the Bureau of Economic Analysis to find household income and median home prices. The ranking was created using mortgage rate calculators and PMT function, assumes a 20% down payment, and the most frequent, 30-year fixed rate mortgage average, with data from the last six months.