There is plenty of evidence showing that a crisis has been escalating across the U.S. housing market, with prices skyrocketing to unaffordable levels, and homeownership becoming a distant goal. But researchers from InvestorsObserver looked at the market by buying a burger, which is a straightforward way to understand housing accessibility over time.
They found that buying a house in 2025 would require a lot fewer Big Macs than before, which, on one hand, suggests things aren’t as bad as they were 20 years ago.
Introducing the Big Mac Index: how many burgers do you need to buy a house?
The Big Mac Index divides the median home price by the Big Mac price for a given year. This method avoids traditional affordability metrics and compares home prices to a consumer good that everyone knows – a burger.
Despite headlines of ever-rising home prices, the Big Mac Housing Index shows that during the 2005 bubble peak, it took approximately 94,419 Big Macs to buy a median-priced house in the US. In 2025, you’d need 71,000 Big Macs to buy a home.
Lead researcher at InvestorsObserver, Sam Bourgi, thinks it’s an amusing way to grasp the crisis. “Although nominal home prices have risen, so has the price of everyday goods due to inflation. Thus, when considering what an ordinary American actually spends their money on, the index suggests that median-priced homes in 2025 are more accessible in Big Mac terms than they were in the peak bubble year.”
Housing affordability depends on where you look.
When it comes to converting burgers to houses, each state tells a different story. Historically, expensive places are the most unaffordable: the difference between California and Louisiana represents entirely different economic realities for families.
While a house in California would require around 149,000 Big Macs, a median-priced home in Louisiana can be purchased with just under 47,000 Big Macs. States like Ohio and Alabama offer relatively affordable houses at around 48,000 to 50,000 Big Macs. Meanwhile, Massachusetts and Washington join California in the six-figure burger territory.
A different research from InvestorsObserver reveals that, still, buying a home today is just as difficult – or even more – than during the eve of the 2008 financial crisis.
“High mortgage rates, limited inventory, and rising costs continue to put immense pressure on affordability, particularly in urban markets where wage growth has not kept pace with housing prices. This creates a tough environment for buyers trying to enter the market today,” said Bourgi.
Prices have decreased 7% since 2022
Over the past three years, the median home price in the US decreased from $442,600 to $410,800, while the average cost of a Big Mac increased from $5.15 to $5.79. In 2025, you’ll need about 70,950 Big Macs to buy a median-priced home, a drop of nearly 7% from 2022.
The story changes when you compare housing to everyday expenses instead of just looking at raw prices. Although homes cost more, so do other items we purchase. “Buyers and policymakers must consider not only housing prices but also how these prices relate to broader inflation trends that affect daily expenses,” said Bourgi.
What does it really mean?
Housing affordability depends on perspective. While traditional metrics may indicate a crisis, the Big Mac approach suggests conditions aren’t as severe as in 2005, and both perspectives can be correct.
The index’s historical perspective provides a warning. “The growing cost ratio before the 2008 crisis indicated increasing market risks, and similar increases at the local or national level today could serve as early signals to slow down price growth or increase housing supply,” concluded Bourgi.
However, most prices depend on location. Choosing states with a lower affordability gap would make sense for raising a family. Meanwhile, homeownership in many parts of the country demands the equivalent cost of tens of thousands of meals.
ABOUT SAM BOURGI
Sam Bourgi is a finance analyst and researcher at InvestorsObserver, bringing over 13 years of expertise in financial markets, economics, monetary policy, and, more recently, cryptocurrency. His professional background spans the private, nonprofit, and public sectors, where he has held positions such as senior policy adviser, labour market analyst, and marketing director. Sam’s in-depth research and market analysis have been referenced by leading institutions and organisations, including the U.S. Congress, Department of Justice, Chicago Board Options Exchange, Bank for International Settlements, Boston University Law Review, Barron’s, and Forbes.
ABOUT INVESTORS OBSERVER
Investors’ Observer is a trusted source of independent financial analysis, market insights, and investment research for individuals and institutions. Founded to empower retail investors with actionable intelligence, Investors Observer delivers timely commentary, data-driven studies, and accessible financial tools to simplify complex market trends.
