Thanks to elevated mortgage rates and a housing shortage, homebuying is more expensive than ever.
In fact, you’d need to earn six figures to afford a median-priced home in all but 15 states, according to a new report from real estate platform Realtor.com.
The site’s affordability analysis also revealed that, in nearly half the country, an average four-person household doesn’t bring home enough to afford monthly mortgage payments on a median-priced three-bedroom house.
Realtor.com based its figures using a 6.65% mortgage rate on a 30-year fixed loan with a 10% down payment. Analysts factored in property taxes and homeowners’ insurance and assumed no more than 30% of a household’s income would go toward housing costs. (Income levels were based on data from the U.S. Census.)
Our youngest state is also the priciest: the median cost for a three-bedroom home in Hawaii is $796,946, which, according to Realtor.com, requires a salary of $229,341.
That’s over 40% more than the average household makes in the Aloha State.
On the other end of the spectrum, a three-bedroom house in Ohio averages $259,450 and requires an annual income of just $74,663 — far below the Buckeye State’s median household income of $113,453.
In each of the five least affordable states, you’d need to make at least 140% of the median income to afford a house big enough for two adults and two kids.
1. Hawaii
Median home price: $796,947
Median household income: $133,656
Income needed for homebuying: $229,341
2. California
Median home price: $728,500
Median household income: $128,533
Income needed for homebuying: $209,643
3. Montana
Median home price: $613,375.
Median household income: $111,516
Income needed for homebuying: $176,513
4. Idaho
Median home price: $566,950
Median household income: $106,407
Income needed for homebuying: $163,153
5. New York
Median home price: $659,974
Median household income: $131,389
Income needed for homebuying: $189,923
In the five most affordable states, the median household income is 1.5 times what you need to make to afford a three-bedroom property.
“Affordable housing in these states means that families can spend a bit more on other necessities or can save more,” Realtor.com senior economic research analyst Hannah Jones said in the report.
1. Ohio
Median home price: $259,450
Median household income: $113,435
Income needed for homebuying: $74,663
2. Michigan
Median home price: $265,350
Median household income: $114,456
Income needed for homebuying: $76,361
3. Illinois
Median home price: $289,950
Median household income: $125,022
Income needed for homebuying: $83,440
4. Iowa
Median home price: $279,950
Median household income: $120,308
Income needed for homebuying: $80,562
5. Pennsylvania
Median home price: $296,750
Median household income: $125,861
Income needed for homebuying: $85,397
To determine how affordable homebuying is in your state, compare the median income with the salary Realtor.com says is required to afford a house. The bigger the gulf between those two figures, the less affordable homes are.
Here’s the income needed to buy a median-priced property in every state, from highest to lowest.
1. Hawaii
Income needed for homebuying: $229,341
Median household income: $133,656
2. Massachusetts:
Income needed for homebuying: $215,816
Median household income: $161,149
3. California:
Income needed for homebuying: $209,643
Median household income: $128,533
4. New York:
Income needed for homebuying: $189,923
Median household income: $131,389
5. Montana:
Income needed for homebuying: $176,513
Median household income: $111,516
6. Washington:
Income needed for homebuying: $174,700
Median household income: $139,828
7. Utah:
Income needed for homebuying: $168,693
Median household income: $120,187
8. New Hampshire:
Income needed for homebuying: $165,456
Median household income: $153,749
9. Idaho:
Income needed for homebuying: $163,153
Median household income: $106,407
10. Colorado:
Income needed for homebuying: $161,002
Median household income: $135,820
11. Oregon:
Income needed for homebuying: $158,276
Median household income: $119,432
12. New Jersey:
Income needed for homebuying: $156,822
Median household income: $157,404
13. Rhode Island:
Income needed for homebuying: $151,067
Median household income: $138,933
14. Connecticut:
Income needed for homebuying: $143,729
Median household income: $149,181
15. Vermont:
Income needed for homebuying: $143,168
Median household income: $132,356
16. Arizona:
Income needed for homebuying: $140,578
Median household income: $107,944
17. Nevada:
Income needed for homebuying: 139,742
Median household income: $99,819
18. Delaware:
Income needed for homebuying: $137,986
Median household income: $128,053
19. Wyoming:
Income needed for homebuying: $132,297
Median household income: $113,060
20. Maine:
Income needed for homebuying: $129,340
Median household income: $114,591
21. Florida:
Income needed for homebuying: $125,182
Median household income: $104,069
22. Alaska:
Income needed for homebuying: $121,585
Median household income: $131,159
23. Virginia:
Income needed for homebuying: $121,534
Median household income: $139,667
24. Tennessee:
Income needed for homebuying: $120,855
Median household income: $99,689
25. Maryland:
Income needed for homebuying: $117,505
Median household income: $151,138
26. North Carolina:
Income needed for homebuying: $114,951
Median household income: $109,590
27. New Mexico:
Income needed for homebuying: $112,146
Median household income: $83,592
28. Minnesota:
Income needed for homebuying: $109,627
Median household income: $141,903
29. Georgia:
Income needed for homebuying: $109,354
Median household income: $112,675
30. Wisconsin
Income needed for homebuying: $109,196
Median household income: $122,571
31. South Dakota:
Income needed for homebuying: $107,196
Median household income: $113,008
32. North Dakota:
Income needed for homebuying: $104,550
Median household income: $122,543
33. Texas:
Income needed for homebuying: $102,160
Median household income: $108,866
34. South Carolina:
Income needed for homebuying: $101,426
Median household income: $102,244
35. Nebraska:
Income needed for homebuying: $99,836
Median household income: $121,455
36. Alabama:
Income needed for homebuying: $92,583
Median household income: $94,373
37. Kentucky:
Income needed for homebuying: $86,044
Median household income: $102,067
38. Pennsylvania:
Income needed for homebuying: $85,397
Median household income: $125,861
39. Oklahoma:
Income needed for homebuying: $84,892
Median household income: $91,528
40. Illinois:
Income needed for homebuying: $83,440
Median household income: $125,022
41. Arkansas:
Income needed for homebuying: $83,440
Median household income: $90,146
42. Mississippi:
Income needed for homebuying: $83,426
Median household income: $84,767
43. Missouri:
Income needed for homebuying: $83,167
Median household income: $105,914
44. Kansas:
Income needed for homebuying: $80,662
Median household income: $111,192
45. Iowa:
Income needed for homebuying: $80,562
Median household income: $120,308
46. Indiana:
Income needed for homebuying: $80,418
Median household income: $105,581
47. Louisiana
Income needed for homebuying: $79,138
Median household income: $97,149
48. Michigan
Income needed for homebuying: $76,361
Median household income: $161,149
49. Ohio
Income needed for homebuying: $74,663
Median household income: $113,435
50. West Virginia
Income needed for homebuying: $71,080
Median household income: $90,164
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
