‘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
New grocery models are being explored as communities look for ways to keep local food access available.
Higher restaurant spending could support foodservice demand for U.S. agricultural products.
Young farmer Elizabeth Bergschneider explains how Monil Virtual Fences supports her family’s succession planning and helps the next generation manage the farm remotely.
ASFMRA’s Spencer Smith discusses farmland lease negotiations and the financial considerations facing landowners and farm operators as they head into the 2027 crop year.

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:

Paulette Wooten and Kim Hill bring their voices together on “How Did We Get Here.”
Final details on eligible endorsement combinations are expected by the end of November.
Stronger East Coast shipments are giving U.S. corn another route to overseas markets.
The shipment would mark the first Russian petroleum-products cargo the United States has imported since a 2022 ban on Russian oil and petroleum products.
Lower production is tightening domestic supplies and pushing rice prices higher.
Growing biofuel use is helping support domestic soybean crush demand.
The special provision giving producers the higher of ARC or PLC for 2025 will not continue next year.
Higher shipping costs could make U.S. grain less competitive overseas.
Higher heating costs are putting added pressure on household budgets in rural communities.
The planned UAE facility could create a new annual export outlet for American corn growers.
Slower exports and stronger foreign competition are weighing on the U.S. pork sector.
AFBF Deputy Chief Economist Dr. Faith Parum says Title I commodity payment rates are expected in November. Producers should watch for USDA application details and contact local FSA offices.