Can the average family in your state actually afford the average home there? I ran the numbers state by state to find out, and only 5 states came out on top.

I'll give you the usual disclaimer first: affordability comes down to your own budget, not some rule someone posts online. If you want a real answer for your situation, run your numbers through my affordability calculator instead of guessing off a spreadsheet.

But I still found this interesting enough to share. I wanted to see which states had a median home price that could actually be covered by that state's median income, keeping the mortgage payment at or below 30% of gross monthly income.

The rules I used

  • 20% down payment (keeps things simple by avoiding the PMI variable, though it's less realistic for most first-time buyers)
  • 6.5% interest rate on a 30 year term (around the average for conventional mortgages according to Mortgage News Daily)
  • Median sales price for each state (according to Redfin)
  • Median household income for each state (a little dated, using 2024 Census numbers)
  • The 30% gross income rule as the definition of "affordable"
  • Property taxes and homeowners insurance are factored into the payment too

The 5 states where median income actually covers the median home

Here's where the median household income is higher than the income needed to afford the median priced home:

  • Iowa: Median price $250,700. Income needed $70,000. Median income $75,501.
  • Delaware: Median price $366,200. Income needed $84,000. Median income $87,534.
  • Indiana: Median price $273,200. Income needed $70,000. Median income $71,959.
  • Ohio: Median price $262,900. Income needed $71,000. Median income $72,212.
  • Michigan: Median price $269,700. Income needed $72,000. Median income $72,389.

That's it. That's the whole list. Everywhere else, the income needed is higher than what the typical household actually brings in.

Every state, ranked by income needed

Here's the full breakdown so you can see where your state lands. Format is Median Price, Income Needed, Median Income.

  • Iowa: $250,700, $70,000, $75,501
  • Delaware: $366,200, $84,000, $87,534
  • Indiana: $273,200, $70,000, $71,959
  • Ohio: $262,900, $71,000, $72,212
  • Michigan: $269,700, $72,000, $72,389
  • Alaska: $399,900, $98,000, $95,665
  • West Virginia: $253,300, $63,000, $60,798
  • North Dakota: $310,500, $81,000, $77,871
  • Pennsylvania: $308,500, $81,000, $77,545
  • Missouri: $281,400, $75,000, $71,589
  • Maryland: $446,900, $109,000, $102,905
  • Minnesota: $354,500, $94,000, $87,117
  • Illinois: $314,200, $91,000, $83,211
  • Alabama: $299,000, $74,000, $66,659
  • South Dakota: $318,500, $86,000, $76,881
  • Louisiana: $260,300, $69,000, $60,986
  • Arkansas: $270,300, $71,000, $62,106
  • Wisconsin: $338,200, $90,000, $77,488
  • Oklahoma: $256,700, $77,000, $66,148
  • Georgia: $373,700, $94,000, $79,991
  • Kansas: $302,300, $89,000, $75,514
  • Kentucky: $277,200, $77,000, $64,526
  • Mississippi: $265,200, $71,000, $59,127
  • Virginia: $462,400, $113,000, $92,090
  • Nebraska: $306,700, $95,000, $76,376
  • Connecticut: $445,100, $121,000, $96,049
  • Texas: $341,800, $101,000, $79,721
  • Maine: $390,400, $97,000, $76,442
  • North Carolina: $381,700, $96,000, $73,958
  • New Hampshire: $500,200, $130,000, $99,782
  • Arizona: $452,300, $107,000, $81,486
  • Tennessee: $392,100, $95,000, $71,997
  • Nevada: $468,900, $107,000, $81,134
  • South Carolina: $397,600, $97,000, $72,350
  • Utah: $575,300, $130,000, $96,658
  • Idaho: $476,300, $111,000, $81,166
  • Florida: $416,800, $107,000, $77,735
  • Wyoming: $440,300, $104,000, $75,532
  • Vermont: $438,400, $115,000, $82,730
  • New Mexico: $378,300, $95,000, $67,816
  • Oregon: $508,100, $122,000, $85,220
  • New Jersey: $545,300, $150,000, $104,294
  • Colorado: $604,600, $146,000, $97,113
  • Massachusetts: $645,400, $158,000, $104,828
  • Washington: $644,300, $151,000, $99,389
  • Rhode Island: $535,100, $135,000, $83,504
  • Montana: $505,600, $122,000, $75,340
  • Hawaii: $773,400, $166,000, $100,745
  • New York: $595,900, $152,000, $85,820
  • California: $854,000, $196,000, $100,149

What this actually means for you

If you're in one of those bottom states on this list, don't panic. Median numbers don't tell your story. Plenty of buyers make it work in "unaffordable" states with down payment assistance, dual incomes, or by buying below the median price point.

If you want help finding programs in your state, check out my down payment assistance guide. It covers all 50 states.

Sources: Redfin for median sale price by state, taxfoundation.org for property taxes, Census ACS 2024 for income, and LendingTree for homeowners insurance.

Sam

Originally shared by u/SamTMortgageBroker in r/NewbHomebuyer — view the original thread.