This Is the Salary You Need to Buy a House in Every US State

It’s no secret that buying a house is expensive right now. Homebuyers have been hit by a double whammy of high mortgage rates and high home prices. The average 30-year fixed rate was 6.94% yesterday, and the median home price was $402,502 in December (the latest available data). Put those two figures together and you have a recipe for high housing costs. 

Meanwhile, wages haven’t kept up. According to a recent report by Realtor.com, the typical U.S. household must earn $118,530 annually to afford the median home, yet the median household income is only around $77,700. In other words, the typical U.S. household would need a 52% raise to buy the median home. That said, some states are more affordable than others.

West Virginia Is Most Affordable

According to the report, West Virginia offers the most affordable U.S. housing with a median home price of $249,000 in December. Meanwhile, the state has an average 30-year fixed mortgage rate of 6.96%. That means you’re looking at a monthly payment of about $1,593 (including estimated property taxes and home insurance), assuming you make a 20% down payment. (You can use a mortgage calculator to figure this out for your dream home.)

For that to be affordable—which the government defines as paying no more than 30% of your gross income on housing—you’d need to be making about $64,000 per year. That’s still over 10% higher than the state’s median income of $57,917, but it’s less of a stretch than what the average U.S. worker faces. And according to Realtor.com’s report, you’d need to make even more in West Virginia to buy a house there: $73,327.

To lower your homebuying costs, try boosting your credit score to get a lower mortgage rate, saving for a larger down payment, or negotiating better loan terms. 

According to Realtor.com’s report, the next most affordable states where buyers need the lowest incomes to buy a house include:

• Ohio: $74,358 (annual median income required)
• Michigan: $79,128
• Louisiana: $80,969
• Iowa: $82,117
• Indiana: $82,427
• Kansas: $83,549
• Mississippi: $85,239
• Missouri: $85,371
• Oklahoma: $85,401

Hawaii Is Most Expensive

On the flip side, Hawaii has the most expensive U.S. housing market with a median home price of $800,000 in December. Meanwhile, the state’s average 30-year fixed mortgage rate was 6.92% yesterday. Assuming you put down 20% on the median house, your monthly payment would be $4,818 (including estimated taxes and home insurance). 

For that to be considered affordable, you’d need to earn around $192,000 per year, which is over 95% higher than Hawaii’s median household income of $98,317. According to Realtor.com, you’d need to earn even more to buy a home in Hawaii: $235,588.

In other words, the Aloha State’s typical house is out of reach for the typical resident, which helps explain the relatively low 62.6% owner-occupied housing rate (West Virginia’s is 74.3%). Even so, you can still improve your ability to buy a house by increasing your income and exploring homes that cost less than average.

According to Realtor.com’s report, the next most expensive states where buyers need the highest income to buy a house include:

• Massachusetts: $215,696 (annual median income required)
• California: $210,557
• New York: $189,207
• Montana: $178,017
• Washington: $176,669
• Utah: $173,744
• Colorado: $166,370
• New Hampshire: $165,512
• Idaho: $164,750

Ultimately, homebuyers seeking the most value for their money may want to avoid expensive states and shop in the most affordable ones instead. However, no matter where you want to call home, you can always improve your ability to buy a house by increasing your income, cutting out unnecessary expenses, and getting your finances in order. 

How We Track Mortgage Rates

The national and state averages cited above are provided as is via the Zillow Mortgage API, assuming a loan-to-value (LTV) ratio of 80% (i.e., a down payment of at least 20%) and an applicant credit score in the 680–739 range. The resulting rates represent what borrowers should expect when receiving quotes from lenders based on their qualifications, which may vary from advertised teaser rates. © Zillow, Inc., 2024. Use is subject to the Zillow Terms of Use.