Mortgage Rates Jump Back Above 7%. Here Are the 10 Least Affordable Markets to Buy a House Right Now

The U.S. housing market is already facing a historic affordability crisis, and now things have gotten even worse. Mortgage rates have once again surged past 7%, according to Mortgage News Daily. As shown in the graph below, rates briefly dipped below 6.7% in late March 2025, offering a glimmer of hope. 

However, that relief was short-lived. By April 11, 2025, the average 30-year fixed rate had jumped sharply, surpassing the 7% mark. Moreover, this spike in borrowing costs is compounding the pressure on buyers already squeezed by high home prices and limited inventory, making homeownership increasingly out of reach in many U.S. metros.

Mortgage rates spike above 7% in April 2025, worsening home affordability. Access the above graph here. [Link]

10 Least Affordable U.S. Housing Markets in 2025

As mortgage rates climb back above 7%, housing affordability continues to deteriorate in major U.S. metros. Los Angeles now leads as the least affordable market, where the average monthly mortgage payment is $6,321 against a median household income of $95,178, meaning nearly 80% of income goes toward housing.

New York City follows closely, with a $4,934 monthly payment consuming 60% of the typical income. According to data available on Reventure App, Miami, too, remains deeply unaffordable. Despite a lower income of $78,940 in Miami, average monthly costs hit $3,215, pushing the burden to almost 49% of income.

Los Angeles leads the list of the 10 least affordable U.S. housing markets, where monthly mortgage payments take up the highest share of income. Access the above table here. [Link]

Moreover, metros like Washington D.C., Phoenix, and Dallas all show mortgage burdens between 35% and 39%, well above the standard affordability threshold. However, metros such as Chicago, Houston, and Atlanta fare slightly better, with mortgage payments taking around 32–34% of median income. Still, affordability remains strained. Even in these relatively cheaper markets, monthly costs far exceed what many households can comfortably manage in today’s high-rate environment.

Buyers Are Being Priced Out the Most in These U.S. Housing Markets in 2025

With borrowing costs rising and home prices staying high, many prospective buyers are finding themselves priced out altogether. Moreover, several major metros are now reaching unsustainable affordability levels. Phoenix, for example, is seeing price cuts on 42.7% of listings, while Dallas, Houston, and Miami are all experiencing deep corrections. These price adjustments reflect growing buyer fatigue and in some cases, a market teetering toward correction.

Check out the home price forecasts, inventory levels, and price cuts across the 10 least affordable U.S. housing markets in 2025 here. [Link]

The hardest-hit buyers are in Los Angeles, where the average mortgage payment of $6,321 eats up nearly 80% of the median income. In New York City, buyers spend 60% of their income on a $4,934 payment. Miami, Phoenix, and Washington D.C. also report payment-to-income ratios between 36% and 49%, far above the traditional affordability benchmark. 

These metros not only show the greatest financial strain on buyers, they’re also where demand may fall fastest in the coming months. Sign up on Reventure App and get the premium plan for only $39/ month to gain access to detailed data on mortgage payments, income ratios, and pricing trends in your ZIP codes.

Access Housing Market data for All the U.S. States on Reventure App.

FAQs about Least Affordable Markets

1. What Are the Least Affordable Housing Markets in the U.S. in 2025?

The least affordable housing markets in 2025 include Los Angeles, New York City, and Miami, where monthly mortgage payments consume between 49% and 80% of the median household income. These cities are becoming increasingly inaccessible to average buyers due to high home prices and rising interest rates.

2. How Do Rising Mortgage Rates Affect Home Affordability?

Rising mortgage rates increase the cost of borrowing, which directly raises monthly mortgage payments for homebuyers. As a result, many buyers qualify for smaller loans or are priced out of the market entirely, especially in metros where home prices are already high.

3. Will Home Prices Drop in 2025 Due to Higher Mortgage Rates?

In some markets, yes. Cities like Phoenix, Dallas, and Miami are already seeing notable price cuts on listings as high rates suppress demand and force sellers to adjust their expectations.