[OC] 61% of American households can’t afford to buy a home in their own neighborhood — local home affordability mapped by ZIP code

Sources: Zillow Home Value Index (typical home tier, 35th–65th percentile), Census ACS 5-year income distributions (16 brackets per ZIP), county property tax rates (Census ACS), state homeowners insurance averages (MoneyGeek).

Methodology: For each of 26,000 ZIP codes, I used the full Census income distribution, not a single median number, to estimate what percentage of local households
earn enough to buy a home in their own ZIP code without exceeding 33% of income on housing costs (the standard lender guideline). Housing costs include mortgage (6.5%,
30yr, 20% down), property tax, insurance, and 1% maintenance.

Key findings:

• 61% of U.S. households can't afford a typical home where they live
• Even for entry-level homes (5th–35th percentile), 45% are priced out
• This uses local household income, not the national median, so it reflects what people in each ZIP actually earn

Important note: This measures homeownership affordability only. It uses household income, not individual. "Affordable" = total monthly housing cost under 33% of
gross income.

A note on down payments: This map assumes 20% down with no PMI. The median first-time buyer actually puts down 9% (NAR). At 9% down with PMI, 67% of households can't afford a typical home and 51% can't afford even a starter home in their own neighborhood.

Tools: Python, Mapbox GL JS