‘Big Mac’ Index Shows Shifts in Housing Affordability

How many burgers could you buy instead of a house?

NASHVILLE, TN (RFD-TV) — The 2025 Big Mac Housing Index offers a unique view of homeownership costs by measuring how many burgers it takes to buy a median-priced house.

Nationally, it takes about 71,000 Big Macs, down nearly seven percent from 2022 and well below the 2005 peak of more than 94,000. This suggests housing is relatively more affordable when compared to consumer goods.

But the picture varies widely by state. According to a report from Investor Observer — California, buyers face the steepest hurdle at more than 149,000 Big Macs, while Louisiana leads as the most affordable at just under 47,000. Other states, such as Ohio and Alabama, also fall near the lower end of the scale, while New York and New Jersey exceed 100,000 Big Macs, underscoring metro-area pressures.

The index, originally devised by The Economist, shows how inflation in consumer goods interacts with home prices, offering a clearer sense of affordability trends. Policymakers and buyers alike can use the measure as a reminder that regional differences remain a defining feature of the U.S. housing market.

While not directly tied to agriculture, the Big Mac Index highlights how broader inflation and affordability trends affect rural communities, where land values and housing costs often shape decisions about farm succession and attracting new farmers.

Related Stories
The FAO report continues to serve as a key benchmark for global food market conditions, offering insight into how shifting supply and demand dynamics are impacting food systems worldwide.
Consumers are watching affordability, but projected beef demand remains strong enough to sustain market attention.
ASFMRA’s Troy Swee joins us to discuss farmland values, investor activity, rental market trends, and the factors shaping rural real estate markets in today’s agricultural economy.
Rising input costs continue weighing on producer outlooks despite stronger expectations for land values.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

New Fed surveys show farmland values remain historically high, though some Upper Midwest markets are beginning to soften.
Fred Seamon with CME Group joins us to discuss the latest Ag Economy Barometer and the key economic pressures shaping producer sentiment in May.
Brazil Potash CEO Matt Simpson discusses global fertilizer security, the importance of domestic production, and Brazil’s push toward fertilizer independence, which could impact market competitiveness.
President Trump’s appearance in Wisconsin coincides with National Dairy Month, placing additional attention on one of the nation’s leading dairy-producing states.
The DOJ is conducting a criminal antitrust investigation into major beef processors, following years of concern over market concentration.
Commercial performance will determine whether the specialty sorghum market can expand across poultry-producing regions.