Cities Where Dave Ramsey’s 25% Housing Rule Still Works

As someone who has spent over two decades immersed in the real estate markets of California and Georgia, I’ve seen affordability benchmarks put to the test year after year. The classic 25% housing rule—spending no more than a quarter of your income on housing—just doesn’t hold up in 2026 for cities like Los Angeles, San Diego, San Francisco, Seattle, and New York. Even buyers coming in with a solid 20% down payment and locking in a 15-year loan at 5.82% are finding median home prices out of reach compared to local incomes. What does this mean for buyers and sellers? It’s a market that demands strategic thinking: considering longer loan terms, exploring value-add properties, or increasing earning power. My role as a market strategist is to help clients navigate these realities, leveraging disciplined negotiation and positioning expertise to maximize opportunity—especially in the nation’s most competitive markets. When it comes to protecting client equity and finding the right fit, creativity and precision have never been more essential.