While the average American homeowner is now spending nearly 40% of their income on housing, a new analysis has uncovered a series of towns and cities where the financial burden is dramatically lighter. A report from the real estate brokerage Redfin identifies hidden gems across the United States where residents pay as little as 16% of their earnings to achieve homeownership, offering a glimmer of affordability in a challenging market.
Midwest and South Dominate Affordable Rankings
The study, which analysed median incomes and home sale prices across 1,751 US cities from January to November 2025, found that affordable pockets are predominantly located in the Midwest and Southern states. The top ten list is dominated by three suburbs of St. Louis, Missouri, and two towns in Louisiana, challenging the pervasive narrative of an uniformly unaffordable housing landscape.
Claiming the number one spot is Bellefontaine Neighbors, Missouri, situated less than ten miles from central St. Louis. Here, residents dedicate a mere 16% of their income to housing costs. The area is characterised by quiet streets, older housing stock, and good transport links. According to Redfin, the median home price is $101,106, with an average monthly mortgage of $645.
Close behind is nearby Ferguson, Missouri, where homeowners spend 17.9% of their income. Ferguson, which gained national attention in 2014 following the police shooting of Michael Brown Jr., has since seen significant civic changes, including electing its first black mayor. Despite this progress, both Bellefontaine Neighbors and Ferguson report poverty rates more than double the national average.
From Detroit's Revival to Louisiana's Strength
In a notable turnaround, Detroit, Michigan, appears as an affordable hotspot with housing costs also at 17.9% of income. The city, once forced to declare bankruptcy two decades ago, is now experiencing a revitalisation. The median home price in Detroit is just $92,384, with an average mortgage payment of $589 per month.
Moving south, the Louisiana cities of Broussard and Bayou Cane round out the top five. In Broussard, outside Lafayette, residents spend only 18.4% of their income on housing. This is facilitated by the area's high median household income of $116,613—the highest on the list—which offsets a median home price of $280,407. The local economy is robust, centred on oil, gas, and manufacturing.
Neighbouring Bayou Cane, outside Houma, requires 18.6% of income for housing. The area, with deep ties to the oil and fishing industries, has an average home price of $177,786.
Affordability Remains a Pressing National Concern
Redfin senior economist Asad Khan contextualised the findings, stating, "Affordability is top of mind for many people today, as rising costs have left younger generations feeling like homeownership is just a pipe dream." Financial experts typically recommend spending no more than 28% of pre-tax income on housing, a threshold many US households now exceed.
The report also highlighted other affordable areas in the top ten, including:
- West Mifflin, Pennsylvania, near Pittsburgh.
- Moss Point, Mississippi, on the Gulf Coast.
- Dunbar, West Virginia.
- Garfield Heights, Ohio, near Cleveland.
- Spanish Lake, Missouri, another St. Louis suburb.
Looking ahead, Redfin predicts a slow improvement in affordability as wage growth is expected to outpace housing costs for a sustained period—a first since the 2008 recession. However, Khan cautioned that a long-term solution requires increased homebuilding. "The best way to make homebuying affordable—especially for younger generations—is to make homebuilding easier and provide financial and social support to populations in need," he concluded.
