The American dream of home ownership is fading as just 28% of U.S. homes are affordable for medium-income households. High mortgage rates, hovering at 6.5% to 7%, significantly increase monthly payments, impacting housing affordability. Home prices have soared 38%, from $319,450 in 2019 to $439,450 in 2025.

A $400,000 mortgage at a 3% rate has a $1,600 monthly payment, but at 7%, it jumps to $2,600, requiring a $104,000 household income. Wages have risen by 15.7%, but not enough to keep up with housing prices, leading to a drop in buying power for families.

Milwaukee, Houston, Baltimore, New York, and Kansas City have lost significant buying power since 2019, with Milwaukee experiencing a 10.5% decrease. Some cities, like Cleveland, have seen modest gains in buying power due to higher wages. However, no area has seen an increase in affordable homes for median families.

While some cities have experienced improvements in buying power, affordability remains a challenge. Families are facing dwindling options as high mortgage rates, rising home prices, and stagnant wages affect housing affordability in metro areas across the country.

Read more at Yahoo Finance: The End of the American Dream? Only 28% Of Homes Affordable Today, Study Shows