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🏠 Top 10 U.S. Cities to Buy a Home on a $125K Salary

💼 Ohio tops the list with all top 5 of the top 10 most affordable housing markets for buyers with a salary of $125,000

If you’re earning $125,000 per year and want the most bang for your buck in today’s housing market, it’s time to look beyond the usual suspects. 🌆

📍Ohio dominates the list of affordable markets, with 5 cities in the top 10. But southern cities like Little Rock, Columbia, and El Paso aren’t far behind.

Here’s what the latest 2025 Housing Affordability and Supply Report from NAR & Realtor.com reveals.👇

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💡 Why It Matters: Affordability Is Still a Challenge

Despite a 20% surge in housing inventory from March 2024 to March 2025, affordable homes are still scarce for many buyers.

🧾 “Listing prices don’t match [buyers’] budgets,” says NAR Senior Economist Nadia Evangelou.
📉 And while options have improved for middle-income earners, many Americans still feel like they’re just window shopping.

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🏆 Top 10 Affordable Cities for $125K Income (2025)

These cities offer the highest share of homes affordable to buyers making $125,000/year, assuming 30% of income goes to housing:

🧭 These metros offer a rare combination of inventory, affordability, and livability — ideal for six-figure earners.

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📊 What Can You Afford on $125,000?

👉 HUD recommends spending no more than 30% of gross income on total housing costs.

That means a monthly housing budget of up to $3,125, which must include:

• 🏦 Mortgage (principal & interest)

• 🏡 Property taxes (~1.1% of home value/year)

• 🔒 Homeowners insurance (~$275/month)

• 💳 Private mortgage insurance (PMI) if <20% down (~0.5–1.5% annually)

• 🔌 Utilities & services (~$600/month total with internet, HOA, etc.)

📈 Based on these factors, NAR found that families earning $125K could afford homes priced between $356,940 and $542,440, depending on local costs and down payment.

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🔍 A Closer Look at the Standouts: Top 5 Cities for $125K Buyers

🧲 1. Youngstown, Ohio

Youngstown ranks #1 for affordability, with a staggering 89% of listings accessible to households earning $125K. Once a symbol of industrial decline, the metro area—stretching into nearby Boardman, OH and Warren, PA—is now a prime destination for budget-conscious homebuyers. Its proximity to Cleveland and Pittsburgh makes it ideal for commuters seeking value without sacrificing access to larger job markets.

🔑 Highlights:

• 💰 Max home price affordability: $410,340

• 🏡 Share of affordable listings: 89%

• 📍 Centrally located between Cleveland and Pittsburgh

• 🛠️ Former manufacturing hub with ongoing redevelopment

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🏙️ 2. Dayton, Ohio

Dayton comes in second, with over 83% of listings affordable on a $125K salary. Despite economic challenges in past decades—including job losses and population decline—Dayton has seen steady revitalization. The metro includes Kettering and surrounding Miami Valley towns, offering family-friendly neighborhoods, solid infrastructure, and a reasonable cost of living.

🔑 Highlights:

• 💰 Max home price affordability: $402,940

• 🏡 Share of affordable listings: 83%

• 📈 Recovering population (up from 799K in 2010 to 812K in 2022)

• ✈️ Home to aviation history and Wright-Patterson Air Force Base

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🛞 3. Akron, Ohio

Akron, once the tire capital of America, still benefits from its industrial roots, with Goodyear and Bridgestone maintaining strong presences. It’s affordable and growing, with 82.7% of listings within reach for buyers earning $125K. The city offers a balance of urban accessibility and suburban peace, along with a rising median income that’s catching up to national averages.

🔑 Highlights:

• 💰 Max home price affordability: $413,210

• 🏡 Share of affordable listings: 82.7%

• 🏭 Major employers include Goodyear and Bridgestone

• 📊 Median income growth: up 4.18% in 2023

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🧱 4. Toledo, Ohio

Toledo offers remarkable affordability with 81.5% of listings within budget. The metro area includes Lucas, Wood, and Fulton counties, and serves as a commuter suburb for Detroit. It’s also home to Fortune 500 firm Owens Corning. Toledo blends affordability with urban opportunities and continues to attract buyers looking for accessible entry points into homeownership.

🔑 Highlights:

• 💰 Max home price affordability: $408,270

• 🏡 Share of affordable listings: 81.5%

• 🏢 Headquarters of Owens Corning

• 🚘 Strong automotive & glass manufacturing legacy

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🌆 5. Cleveland, Ohio

Cleveland rounds out the top five, offering 79.3% of listings affordable to six-figure earners. With a rich industrial history and cultural footprint, Cleveland boasts access to healthcare, education, and Lake Erie recreation. The Cleveland-Elyria metro area includes six counties and a population of over 2 million, providing scale, services, and stable job markets—all while maintaining reasonable housing costs.

🔑 Highlights:

• 💰 Max home price affordability: $414,350

• 🏡 Share of affordable listings: 79.3%

• 🌊 Waterfront amenities and major healthcare systems

• 🏙️ Includes Ashtabula, Cuyahoga, and four other counties

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💬 Final Thoughts: Six Figures Doesn’t Go as Far as It Used To

🏡 Homeownership on a $125K salary is still possible — but location is everything.

While coastal cities price out even high earners, Midwestern and Southern markets are expanding access to homeownership for upper-middle-class families.

🎯 Pro Tip: Use a mortgage affordability calculator before you house hunt. Factor in PMI, taxes, and insurance, not just the sticker price.

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