{"id":5073,"date":"2024-04-03T18:49:38","date_gmt":"2024-04-03T18:49:38","guid":{"rendered":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2024\/04\/03\/this-is-how-much-you-need-to-earn-in-every-state-to-buy-a-home\/"},"modified":"2024-04-03T18:49:38","modified_gmt":"2024-04-03T18:49:38","slug":"this-is-how-much-you-need-to-earn-in-every-state-to-buy-a-home","status":"publish","type":"post","link":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2024\/04\/03\/this-is-how-much-you-need-to-earn-in-every-state-to-buy-a-home\/","title":{"rendered":"This Is How Much You Need To Earn in Every State To Buy a Home"},"content":{"rendered":"

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Getty Images<\/p>\n

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Homebuyers in nearly half of the country need to earn at least six figures to be able to purchase a home.<\/p>\n

Nationally, the typical household would need to earn $99,000 to buy a median-priced home of $415,500 in February, according to the most recent Realtor.com\u00ae data. This also accounts for property taxes and insurance costs, and assumes a 10% down payment.<\/p>\n

\u201cFor many people who want to buy a house, it\u2019s just not feasible right now,\u201d says Realtor.com senior economic research analyst\u00a0Hannah Jones<\/strong>. \u201cEven for households that can afford a home, the monthly cost is going to be much higher than it was two, three, four years ago.\u201d<\/p>\n

That\u2019s because home prices have surged since the COVID-19 pandemic<\/a> and mortgage rates went from the mid-2% to the high 6% range.<\/p>\n

In 23 states, buyers needed to earn at least $100,000 to avoid paying more than 30% of their gross income on housing. Homeowners who pay more than that percentage are generally considered cost-burdened.<\/p>\n

However, the typical household income in America was only about $75,000 in 2022, according to the U.S. Census Bureau<\/a>. A household includes all adults who live in the same home, including couples, multigenerational families, and roommates.<\/p>\n

\u201cThe majority of households could not afford to purchase a home,\u201d says Jones.<\/p>\n

Buyers in Hawaii, where the typical home was listed at $850,000, needed the highest household income of at least $202,526 to afford a property. However, in West Virginia, it was possible to buy a home on a $55,039 household income. The state had the lowest median home prices in the nation of just $231,000 in February.<\/p>\n

\u201cBuying a home is always an important financial undertaking,\u201d says Jones. \u201cThe financial impact has only grown over the last few years thanks to higher mortgage rates<\/a> and climbing home prices<\/a>. A lot of households are spending more of their income on housing than they were in the past.\u201d<\/p>\n

To come up with the state findings, Realtor.com analyzed median monthly mortgage payments in every state. The calculation uses median home list prices from February and a 6.78% mortgage rate for a 30-year fixed loan, and includes estimated property taxes and insurance costs. It also assumes buyers put down 10% and didn\u2019t spend more than 30% of their gross income on their mortgage payments each month.<\/p>\n\n

States where buyers need the highest incomes to purchase homes<\/h2>\n

This four-bedroom, three-bathroom home in Hilo, HI, is on the market for $593,000.<\/p>\n

Realtor.com<\/p>\n

1. Hawaii<\/a><\/h2>\n

Median home list price in February: $850,000<\/strong>
\nMedian household income required to purchase a home: $202,526<\/strong><\/p>\n

2. Massachusetts<\/a><\/h2>\n

Median home list price: $777,500<\/strong>
\nMedian household income required to purchase a home: $185,251<\/strong><\/p>\n

3. California<\/a><\/h2>\n

Median home list price: $730,000<\/strong>
\nMedian household income required to purchase a home: $173,934<\/strong><\/p>\n

4.\u00a0New York<\/a><\/h2>\n

Median home list price: $652,520<\/strong>
\nMedian household income required to purchase a home: $155,473<\/strong><\/p>\n

This four-bedroom, 2.5-bathroom home in Seattle, WA, is in foreclosure and listed for $750,000.<\/p>\n

Realtor.com<\/p>\n

5. Washington<\/a><\/h2>\n

Median home list price: $619,500<\/strong>
\nMedian household income required to purchase a home: $147,606<\/strong><\/p>\n

6. Montana<\/a><\/h2>\n

Median home list price: $602,475<\/strong>
\nMedian household income required to purchase a home: $143,549<\/strong><\/p>\n

7. Utah<\/a><\/h2>\n

Median home list price: $599,450<\/strong>
\nMedian household income required to purchase a home: $142,828<\/strong><\/p>\n

8. Colorado<\/a><\/h2>\n

Median home list price: $594,500<\/strong>
\nMedian household income required to purchase a home: $141,649<\/strong><\/p>\n

9. New Hampshire<\/a><\/h2>\n

Median home list price: $562,450<\/strong>
\nMedian household income required to purchase a home:\u00a0$134,012<\/strong><\/p>\n

This four-bedroom, two-bathroom home in Boise, ID, is on the market for $499,000.<\/p>\n

Realtor.com<\/p>\n

10. Idaho<\/a><\/h2>\n

Median home list price: $554,500<\/strong>
\nMedian household income required to purchase a home: $132,118<\/strong><\/p>\n

States where buyers need the lowest incomes to purchase homes<\/h2>\n

1. West Virginia<\/a><\/h2>\n

Median home list price in February: $231,000<\/strong>
\nMedian household income required to purchase a home: $55,039<\/strong><\/p>\n

2. Ohio<\/a><\/h2>\n

Median home list price: $249,900<\/strong>
\nMedian household income required to purchase a home: $59,543<\/strong><\/p>\n

3. Michigan<\/a><\/h2>\n

Median home list price: $259,900<\/strong>
\nMedian household income required to purchase a home:\u00a0$61,925<\/strong><\/p>\n

This five-bedroom, three-bathroom home in Calvin, LA, is on the market for $93,500.<\/p>\n

Realtor.com<\/p>\n

4. Louisiana<\/a><\/h2>\n

Median home list price: $275,000<\/strong>
\nMedian household income required to purchase a home: $65,523<\/strong><\/p>\n

5. Mississippi<\/a><\/h2>\n

Median home list price: $278,898<\/strong>
\nMedian household income required to purchase a home: $66,452<\/strong><\/p>\n

6. Indiana<\/a><\/h2>\n

Median home list price: $280,750<\/strong>
\nMedian household income required to purchase a home: $66,893<\/strong><\/p>\n

This three-bedroom, 1.5-bathroom home in Lititz, PA, is on the market for $200,000.<\/p>\n

Realtor.com<\/p>\n

7. Pennsylvania<\/a><\/h2>\n

Median home list price: $285,378<\/strong>
\nMedian household income required to purchase a home: $67,996<\/strong><\/p>\n

8. Missouri<\/a><\/h2>\n

Median home list price: $291,250<\/strong>
\nMedian household income required to purchase a home: $69,395<\/strong><\/p>\n

9. Arkansas<\/a><\/h2>\n

Median home list price: $293,838<\/strong>
\nMedian household income required to purchase a home: $70,011<\/strong><\/p>\n

This four-bedroom, two-bathroom home is for sale in Le Mars, IA, for $249,000.<\/p>\n

Realtor.com<\/p>\n

10. Iowa<\/a><\/h2>\n

Median home list price: $294,750<\/strong>
\nMedian household income required to purchase a home: $70,229<\/strong><\/p>\n

The 50 states and the median household income required to purchase a home<\/h2>\n

1. Alabama: $76,826<\/strong>
\n2. Alaska: $94,472<\/strong>
\n3. Arizona: $119,922<\/strong>
\n4. Arkansas: $70,011<\/strong>
\n5. California: $730,000<\/strong>
\n6. Colorado: $594,500<\/strong>
\n7. Connecticut: $120,908<\/strong>
\n8. Delaware: $114,366<\/strong>
\n9. Florida: $109,364<\/strong>
\n10. Georgia: $91,720<\/strong>
\n11. Hawaii: $202,526<\/strong>
\n12. Idaho: $132,118<\/strong>
\n13. Illinois: $70,872<\/strong>
\n14. Indiana: $66,893<\/strong>
\n15. Iowa: $70,229<\/strong>
\n16. Kansas: $71,200<\/strong>
\n17. Kentucky: $71,349<\/strong>
\n18. Louisiana: $65,523<\/strong>
\n19. Maine: $100,310<\/strong>
\n20. Maryland: $93,281<\/strong>
\n21. Massachusetts: $185,251<\/strong>
\n22. Michigan:\u00a0$61,925<\/strong>
\n23. Minnesota: $92,173<\/strong>
\n24. Mississippi: $66,452<\/strong>
\n25. Missouri: $69,395<\/strong>
\n26. Montana: $602,475<\/strong>
\n27. Nebraska: $83,393<\/strong>
\n28. Nevada: $114,606<\/strong>
\n29. New Hampshire: $134,012<\/strong>
\n30. New Jersey: $127,919<\/strong>
\n31. New Mexico: $92,480<\/strong>
\n32. New York: $652,520<\/strong>
\n33. North Carolina: $94,234<\/strong>
\n34. North Dakota: $80,093<\/strong>
\n35. Ohio: $59,543<\/strong>
\n36. Oklahoma: $70,467<\/strong>
\n37. Oregon: $130,867<\/strong>
\n38. Pennsylvania: $67,996<\/strong>
\n39. Rhode Island: $115,547<\/strong>
\n40. South Carolina: $83,369<\/strong>
\n41. South Dakota: $87,330<\/strong>
\n42. Tennessee: $102,688<\/strong>
\n43. Texas: $85,764<\/strong>
\n44. Utah: $599,450<\/strong>
\n45. Vermont: $116,920<\/strong>
\n46. Virginia: $100,697<\/strong>
\n47. Washington: $619,500<\/strong>
\n48. West Virginia: $55,039<\/strong>
\n49. Wisconsin: $89,296<\/strong>
\n50. Wyoming: $107,088<\/strong><\/p>\n

The post This Is How Much You Need To Earn in Every State To Buy a Home<\/a> appeared first on Real Estate News & Insights | realtor.com\u00ae<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Getty Images Homebuyers in nearly half of the country need to earn at least six figures to be able to purchase a home. Nationally, the typical household would need to earn $99,000 to buy a median-priced home of $415,500 in February, according to the most recent Realtor.com\u00ae data. This also accounts for property taxes and…Read More→<\/a><\/p>\n","protected":false},"author":0,"featured_media":5074,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/5073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/comments?post=5073"}],"version-history":[{"count":0,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/5073\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media\/5074"}],"wp:attachment":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media?parent=5073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/categories?post=5073"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/tags?post=5073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}