Affordability Tightest in Cities

Housing costs for renters and owners in urban areas are the most expensive, compared to suburban and rural markets. 

At the national level, renter households in urban areas that are earning the median income can expect to pay 36.8 percent toward housing. In the suburbs, these households have to pay 31.8 percent, and in rural areas, 23.9 percent, the only segment where households would not be cost-burdened, writes Zillow economist Sarah Mikhitarian. For those looking to own, buying the median-priced home in an urban core would require 26.5 of their income for the monthly mortgage payment, whereas in rural and suburban areas, the share is between 13.4 and 20.2 percent, respectively.

The nation’s worsening housing affordability challenge is, perhaps not surprisingly, largely centered in the country’s urban centers, where housing costs are high and incomes are more disparate. But those seeking respite in the nation’s stalwart, sprawling suburbs may be surprised to find little relief there, either. Instead, it’s the country’s rural heartland that tends to offer the best housing bargains.

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