Recent data from Zillow indicates that the typical U.S. household can now afford a home priced around $331,483 – a roughly $30,000 increase from the previous year. However, purchasing power varies dramatically by region, meaning the same budget buys significantly different properties depending on location. This shift reflects broader economic trends, including wage growth and fluctuating interest rates, but affordability remains highly localized.
Regional Breakdown: Affordability by Area
Here’s how that $331,000 can be used in key regions:
Northeast
In cities like Philadelphia, a median-income household could afford a home valued at approximately $346,797 as of January 2026, up from around $315,500 the previous year. At this price point, buyers typically find rowhouses or townhouses, which are common property types in the area. The Northeast generally offers less square footage per dollar compared to other regions.
Midwest
The Midwest often delivers more space for the same budget. In Columbus, Ohio, a median-income household could afford a home worth around $320,891 in early 2026, an increase from $292,100 a year prior. This price range typically yields three-bedroom single-family homes between 1,200 and 1,800 square feet.
South
Southern housing markets often provide the most value for the money. In Tampa, Florida, a similar budget allows for a home worth about $300,751 (up from $276,500 in 2025). This typically buys a three-bedroom house with around 1,000 to 1,400 square feet. The South’s relatively lower land costs contribute to this affordability.
West
Western markets tend to stretch housing budgets the least. Data from the U.S. Census Bureau shows that the median price per square foot for new homes is highest in the West ($195.38). In Las Vegas, Nevada, a median-income household could afford a home at $354,612 (up from $319,900 in 2025), which usually includes smaller single-family homes with 1,200 to 1,600 square feet.
The Impact of Location
Zillow’s analysis clearly demonstrates that while national buying power has improved, location remains the single biggest factor determining what a $331,000 budget can buy. Some regions offer larger single-family homes, while others limit buyers to smaller properties.
For prospective homeowners, understanding these regional differences is crucial for setting realistic expectations. Mortgage rates and overall housing costs will continue to shape affordability, making it essential to research local markets carefully.
The article is a snapshot of current affordability trends, but economic conditions can change rapidly. Buyers should stay informed and adapt their strategies accordingly.
