The American Dream once promised that if you worked hard, you could own a home, raise a family, and build equity. But in today’s housing market, that promise is unraveling—even for the upper-middle class. In many major cities, earning well above the national median income still isn’t enough to buy a modest, single-family home.
The math no longer works, and the crisis isn’t limited to minimum-wage earners. Here’s a look at cities where even those considered financially comfortable are priced out of the housing market.
San Francisco, California
A household earning $200,000 a year—solidly upper-middle class by any national standard—still struggles to purchase a median-priced home in San Francisco. With home prices well above $1.3 million and interest rates hovering above 6%, the monthly mortgage, taxes, and insurance often exceed $7,000.
Despite tech salaries, the cost of housing far outpaces income growth. Even dual-income professionals find themselves stuck renting or moving far outside the city limits.
New York City, New York
The cost of real estate in New York has never been modest, but what was once exclusive to Manhattan now extends deep into Brooklyn and Queens. A modest brownstone or two-bedroom condo can easily cost $1 million or more, pricing out professionals like lawyers, engineers, and senior educators.
Between co-op board requirements, massive down payments, and property taxes, even households earning $150,000–$250,000 may find themselves locked out of homeownership within the five boroughs.
Seattle, Washington
Once a relatively affordable tech hub, Seattle’s median home price now sits above $900,000. The explosion of high-paying jobs at companies like Amazon and Microsoft has not been matched by a proportional increase in housing supply.
For a family earning $180,000 a year, buying a modest home near the city center remains out of reach unless they already own property or receive outside help. The upper-middle class here is quickly becoming the rent-burdened class.
Los Angeles, California
In L.A., sky-high home prices are just part of the problem. The average price for a home in many neighborhoods now exceeds $1 million, but income growth hasn’t kept pace with the region’s inflated cost of living.
Professionals in entertainment, education, and healthcare often find themselves unable to compete with cash buyers or investors. Commutes grow longer as people are pushed to the outer edges of the city or entirely out of Southern California.
Boston, Massachusetts
Boston combines a booming biotech and education sector with an aggressively competitive housing market. Upper-middle-class earners in the $150,000 to $200,000 range often find themselves unable to afford homes in desirable school districts or near public transportation.
Tight zoning laws and limited new development have created a supply crisis, and bidding wars have become the norm. Many upper-middle-class families are now choosing to rent indefinitely.
Denver, Colorado
Once a destination for affordable mountain living, Denver has transformed into a city where six-figure earners still can’t comfortably afford homes in walkable, central neighborhoods. The housing boom that followed the tech migration and remote work explosion has lifted median home prices above $700,000.
Even for dual-income households earning well into the six figures, the cost of homeownership, especially when factoring in property taxes and insurance, is often too steep.
San Diego, California
San Diego blends stunning coastal living with a housing market that punishes even high earners. The median home price now exceeds $950,000, and competition remains fierce thanks to limited inventory and high demand from both locals and out-of-state buyers.
Professionals with stable, high-paying jobs—engineers, military officers, healthcare administrators—often find they must choose between extreme debt loads or leaving the region altogether.
Austin, Texas
Austin’s transformation from quirky college town to tech powerhouse has been accompanied by a staggering spike in home prices. Though Texas incomes are rising, they lag far behind Austin’s rapidly inflating real estate market.
A household making $180,000 may still struggle to find a detached home within 30 minutes of downtown. With corporate relocations flooding the area, long-time residents and even newcomers with impressive incomes are priced out of ownership.
Miami, Florida
Miami’s real estate market has exploded thanks to demand from out-of-state buyers, investors, and remote workers. A two-bedroom condo in a desirable neighborhood now easily costs more than $600,000.
Even for upper-middle-class residents working in finance, hospitality, or health care, the cost of homeownership is now heavily weighted toward luxury and speculation, not practicality. For many, renting remains the only option despite strong earnings.
Portland, Oregon
Portland may not be the most expensive city in America, but the gap between wages and housing prices has become stark. Median home prices around $600,000 combined with strict urban growth boundaries and slow new construction have created a bottleneck.
Households earning around $150,000—a significant income by regional standards—still can’t afford homes without significant debt or outside assistance. First-time buyers are increasingly priced out, even with favorable credit and savings.
