How Much Income You Need to Afford a Home in Each State (2025 Breakdown)

Collin County News

April 11, 2025 Maverick Tax Guardians

The cost of buying a home in the United States continues to climb, and the income needed to afford a median-priced property varies dramatically depending on where you live. A recent analysis of housing data reveals just how much income families need to qualify for a typical home in each state—and the gap between the most and least expensive states is staggering.

States Where Homeownership Requires the Highest Incomes

In several coastal and high-demand states, the price of entry into the housing market is steep. Here are a few standout examples:

Hawaii: With a median home price around $800,000, families would need to earn about $235,588 annually to afford a home.
Massachusetts: Buying a typical home priced at $732,450 would require an annual income of around $215,696.
California: To afford a median-priced home of $715,000, households would need to earn approximately $210,557 per year.

These figures are based on estimated mortgage payments, assuming a 20% down payment and a 30-year fixed-rate loan.

States Where Homes Are Still Relatively Affordable

In contrast, there are states where homeownership is far more accessible, especially for families earning under $80,000 a year:

West Virginia: With a median home price of $249,000, a family would need to earn around $73,327 annually.
Ohio: Median home prices sit at about $252,500, requiring an income of $74,358.
Michigan: A typical home costs $268,700, and the income needed is approximately $79,128.

These regions offer more affordable options, especially for first-time buyers or families looking to relocate for a lower cost of living.

National Picture: The Cost of Homeownership Keeps Rising

Across the U.S., the average household income required to afford a median-priced home has surged to roughly $116,986. That’s an increase of nearly 50% since 2020, driven by rising home prices and interest rates.

As homeownership becomes increasingly tied to location and income, understanding these state-by-state differences can help families plan smarter—whether they’re looking to buy locally or considering a move to a more affordable area.

source
This news article is based on information from:
realtor.com -“How Much You Need To Earn in Every State To Buy a Home” (January 20, 2025). Retrieved from:https://www.realtor.com/news/trends/how-much-earn-buy-home-state/