11 Cities Where Starter Homes Could Become Unaffordable for the Middle Class in 2025

This has been a year of financial uncertainty — grocery prices continue to spiral upward, rent and mortgages are up and the looming threat of tariffs seem to portend greater cost of living (at least in the short term). As prices continue to rise, housing affordability has become more tenuous as well, with many cities becoming too expensive for first-time homeowners in the middle class to purchase their starter homes.

GOBankingRates recently compiled a study to determine the various American cities whose housing costs will soon eclipse the affordable cost of living for the middle class. Pulling from such sources as the U.S. Census Bureau, the Bureau of Labor Statistics, various Zillow home value and indexes and forecasts and more, GOBankingRates located the 11 cities most likely to make starter homes impossible for the middle class to afford in 2025. The cities are centered almost entirely in the Midwest and Texas.

See whether your dream city is on the list.

Also see the easiest cities for middle-class people to buy homes.

• Median household income: $54,335
• Average monthly mortgage: $1,333
• Average monthly cost of living: $3,161
• Average home value: $225,575
• % change forecast by January 2026: 3.0%

• Median household income: $53,115
• Average monthly mortgage: $1,325
• Average monthly cost of living: $3,087
• Average home value: $224,139
• % change forecast by January 2026: 3.3%

• Median household income: $57,344
• Average monthly mortgage: $1,341
• Average monthly cost of living: $3,072
• Average home value: $226,890
• % change forecast by January 2026: 2.0%

• Median household income: $60,165
• Average monthly mortgage: $1,331
• Average monthly cost of living: $3,184
• Average home value: $225,315
• % change forecast by January 2026: 2.6%

• Median household income: $58,734
• Average monthly mortgage: $1,324
• Average monthly cost of living: $3,240
• Average home value: $224,105
• % change forecast by January 2026: 2.5%

• Median household income: $62,995
• Average monthly mortgage: $1,323
• Average monthly cost of living: $3,254
• Average home value: $223,828
• % change forecast by January 2026: 2.4%

• Median household income: $56,457
• Average monthly mortgage: $1,302
• Average monthly cost of living: $3,133
• Average home value: $220,329
• % change forecast by January 2026: 3.8%

• Median household income: $41,491
• Average monthly mortgage: $1,304
• Average monthly cost of living: $3,195
• Average home value: $220,610
• % change forecast by January 2026: 3.6%

• Median household income: $61,840
• Average monthly mortgage: $1,325
• Average monthly cost of living: $2,990
• Average home value: $224,283
• % change forecast by January 2026: 1.8%

• Median household income: $64,985
• Average monthly mortgage: $1,334
• Average monthly cost of living: $3,236
• Average home value: $225,825
• % change forecast by January 2026: 0.8%

• Median household income: $74,906
• Average monthly mortgage: $1,328
• Average monthly cost of living: $3,210
• Average home value: $224,701
• % change forecast by January 2026: 1.2%

Methodology: For this study, GOBankingRates analyzed cities to find places where the housing costs could be unaffordable for the middle class. The middle class was defined as having two-thirds to double the national median income. Home values were sourced from Zillow Home Value Index and, using Federal Reserve Economic Data, the average mortgage cost was calculated. The cities with a mortgage under the minimum middle-class income were kept for this study. The housing costs had to be less than or equal to 30% of the household income to qualify for this study. Using the Zillow Home Value Forecast, the home values and mortgages for January 2026 were calculated. The cities with an estimated mortgage cost for January 2026 over the 30% limit were identified. These represent cities with housing costs that are currently affordable for the minimum middle-class but are expected to be unaffordable within the next 12 months. Median income was sourced from the U.S. Census American Community Survey, and cost of living was sourced from Sperling’s BestPlaces and the Bureau of Labor Statistics Consumer Expenditure Survey. The cities were sorted to show the most unaffordable places first. All data was collected on and is up to date as of Feb. 26, 2025.