Please note: The data visualization embeds on this page are best viewed on a laptop or desktop computer.

Markets where people earn the most are usually the ones that make the headlines, and it’s usually the same markets: San Jose, San Francisco, Washington, D.C., Boston, and Seattle. These are among the most expensive housing markets in the country, and incomes reflect that.

In San Jose, for example, the typical homeowner earns more than $200,000 a year. In San Francisco and Washington, D.C., homeowner incomes are also well into six figures. But that is not surprising: buying a home in these markets requires a high income because housing costs are so high.

However, looking only at how much homeowners earn does not tell us everything we need to know about access to homeownership.

A better question is: how do homeowners’ incomes compare with renters’ incomes in the same market? In other words, how big is the jump a household has to make to move from renting to owning?

At the national level, that jump is still very large. In 2024, the median income of homeowners was about $100,700, while renters earned nearly $54,400. That means the typical homeowner earns about 85% more than the typical renter. The gap has actually narrowed over time. This is a very encouraging sign. In 2010, homeowners earned a little more than twice as much as renters. Over the past decade, renter incomes have grown faster, bringing these two groups somewhat closer together. But even with that improvement, the gap remains substantial, highlighting the financial hurdle renters face in order to make the transition into homeownership.

When we look across metro areas, the story becomes even more interesting.

But the largest gaps aren’t where you might expect

We usually expect the largest income gaps between homeowners and renters to be in the most expensive housing markets. But that is not always the case. In fact, the data show that many of the largest gaps occur in smaller and mid-sized metros rather than in the most expensive coastal markets. That actually makes sense. In expensive housing markets, rents are also high, so renters usually have higher incomes than in other areas.

For example, in San Jose, homeowners earn about $209,000, compared with $123,000 for renters. That is a large difference in dollar terms, but in percentage terms, the gap is about 71%. In San Francisco, the gap is around 88%, and in Washington, D.C., about 99%. Still large differences, but these are not the largest in the country.

College towns show the largest income gaps: Iowa City and Champaign-Urbana

Some of the largest income gaps show up in college towns. In Iowa City, Iowa, the difference is around 195%, and in Champaign-Urbana, Illinois, about 191%. Why? These are markets with large student populations among renters. This brings down the renter income numbers, while homeowners tend to be older and more established professionally.

Large gaps in mid-sized Midwest and Northeast markets: Springfield, Bloomington, and Ann Arbor

Several mid-sized metros across the Midwest and Northeast also show large income gaps. In Springfield, Massachusetts, homeowners earn about 171% more than renters. In Bloomington, Indiana, the gap is about 167%, and in Ann Arbor, Michigan, it exceeds 160%. In these markets, the data suggest that homeownership is much more concentrated among higher-income households compared with renters.

Smaller income gaps in retirement and Sun Belt markets: Punta Gorda, Ocala, and Cape Coral

On the other hand, some of the smallest gaps appear in retirement destinations and certain Sun Belt markets. In Punta Gorda, Florida, homeowners earn only about 19% more than renters. In Ocala, Florida, the difference is roughly 36%, while in Cape Coral, Florida, it is about 41%.

Overall, the data show that homeowners earn more than renters everywhere in the country. The size of that difference, however, varies significantly across markets, and tells us something important about housing access.

Source: Nadia Evangelou for NAR Economists' Outlook