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71 June 2025 J O U R N A L June 2025 » first-time and existing homeowners and preventing many from moving. This study shows that historically underprivileged ethnic groups are disproportionately affected by climate risk, which could worsen racial wealth and income disparities. In addition to being more vulner- able to the effects of climate change, minority groups are also less likely to obtain homeowners insurance, which can aid in their recovery in the event of a disaster. One in 13 American homes do not have insurance, and individuals of color are the most likely to do so: some 22% of Native American home- owners, 14% of Hispanic homeowners, and 11% of Black homeowners do not have insurance, according to the Consumer Federation of America. In comparison, only 5% of Asian Amer- ican and Pacific Islander homes and 6% of white homeowners do not have insurance. Rising premiums raise the like- lihood of mortgage delinquency for homeowners who do carry insurance. Black and Hispanic communities are likely to be more financially impacted by the increased cost of insurance given the current financial gaps. After being affected by the disaster, communities of color had a 31-point drop in credit scores, while majority-white communi- ties saw a 4-point reduction, according to the Urban Institute. A 2025 Zillow analysis found that homes with extreme risk of fire and f lood are less likely to sell, or even go pending, and those that do sell are more likely to sell for less than the original list price, making racial groups that face higher climate risk more vulnerable to loss of wealth from home equity. This is another effect that can affect owners of homes facing climate risk: they are less likely to realize the full potential of their home equity when they sell. Overall, and unfortunately, homeowners of color continue to be more vulnerable to significant climate dangers and the associated escalating expenses. STUDY: AFFORDABILITY WORSENS AS PRICES OUTPACE BUYER INCOMES A ccording to a recent study conducted by Clever Real Es- tate, the average home can be purchased affordably in just two of the 50 major U.S. metro areas—Pittsburgh and Detroit—for the local median sal- ary. Moreover, Iowa is the only state in the nation with statewide affordability. To identify regions where total housing expenses surpass 28% of the typical household's gross income—a widely recognized benchmark for hous- ing affordability—Clever examined the 50 largest metro areas in the United States along with each of the 50 states. Across the country, the typical homebuyer would require a median family income of $123,226 to purchase the median-priced home in the United States, which is $438,000, with a 20% down payment, a 6.65% mortgage rate, and typical costs for property taxes and home insurance. However, the median household income is only $77,719, which is a startling $45,507 disparity. For the average household to afford the median home, the price would have to drop by more than $160,000, to $276,247. Affordability, Income & Prices — National Home prices continue to be the most important determinant of housing affordability, but disparities in insurance and property tax costs are becoming more significant, resulting in large dis- parities in the required income between states with comparable home values. Detroit, one of just two affordable metro areas, has a household income of only $72,574, but the typical price of a home sold there is only $195,000, which is less than half of the $438,000 national average. The median income of the residents is $12,100 higher than what is required to buy a typical property. Likewise, although Pittsburgh's median income of $72,532 is about average, the cost of homes there is only $250,000. Top five most affordable cities for median-income earners: 1. Detroit 2. Pittsburgh 3. Philadelphia 4. Cleveland 5. Cincinnati "Golden State" Buyers Won't Find Affordability in These Cities California is home to the four least expensive cities in the study: San Diego, San Francisco, Los Angeles, and San Jose. Even with a 20% down payment, average households in those four Califor- Top five most affordable cities for median-income earners: Rank Metro area Median household income Median home sales price (April 2025) Income needed with 20% down Income needed with 0% down U.S. $77,719 $438,000 $123,226 $147,602 1 Detroit $72,574 $195,000 $60,474 $71,326 2 Pittsburgh $72,532 $250,000 $71,217 $85,130 3 Philadelphia $86,867 $290,000 $87,731 $103,870 4 Cleveland $67,586 $235,000 $69,150 $82,229 5 Cincinnati $77,844 $294,000 $80,336 $96,698