A Realtor.com analysis shows the US affordability crisis has worsened significantly since the pandemic, driven mainly by rising housing costs. While the average household still has some discretionary income, it drops sharply in the least affordable states, where housing can consume nearly 30% of income.
The decline is widespread, with most states losing purchasing power as costs outpace incomes. Housing remains the biggest factor behind these differences, with sharply higher shelter and utility expenses placing sustained pressure on household budgets and deepening the nationwide affordability gap.
Biggest declines (least affordable)
- Rhode Island — +8.4%
- Massachusetts — +8.1%
- California — +7.1%
(Higher % = households must spend more of their income → worse affordability)
Biggest improvements (more affordable)
- Kansas — –5.0%
- New Mexico — –4.7%
- Utah — –4.1%
(Negative % = households spend less of their income → improved affordability)
Overall trend
- 29 states + D.C. saw declines (avg. –3.2% purchasing power)
- 21 states saw modest improvements
Read more here.
