In today’s housing market, even families with high incomes often find homeownership out of reach.

Laura and Samuel Graves, a millennial couple, despite their substantial earnings, remain stuck renting, watching the housing market from the sidelines. What keeps them from buying a home, and what does their struggle reveal about the broader challenges facing today’s homebuyers?

The Financial Reality of Expensive Housing Markets

In many U.S. cities, a high income no longer guarantees homeownership. This is the case for Laura and Samuel Graves, who earn $250,000 annually in Portland, Oregon, yet struggle to buy a home that fits their budget.

Portland’s housing market is notoriously expensive, with average home prices around $540,000. In the suburb where the Graves are searching, prices often exceed $642,000.

Currently, mortgage rates hover at 6.47%, much higher than the sub-3% rates seen a few years ago, making homes even less affordable.

Financial experts recommend spending no more than 28% of income on housing. For the Graves, this would mean a mortgage of about $3,000 per month, but most homes they’re interested in require monthly payments around $5,000—almost half their $11,000 take-home pay.

Refusing to become “house-poor,” a term for those who stretch their finances thin to own a home, the Graves have opted to continue renting their $2,700-a-month apartment until they find a suitable property within their budget.

Choosing to Rent and Wait

The Graves prefer to rent while monitoring the market, hoping prices will drop and allow them to purchase a home that fits their financial goals. This cautious approach is common among middle-class families who prioritize financial stability over risky investments.

Why Portland’s Housing Costs Remain High

Despite national trends of falling home prices in some regions, Portland remains expensive due to several factors: