MA is 2nd in Income required to Buy A Home
For many families, owning a home is part of the American dream. But today, that dream is getting harder to reach. A new study from Realtor.com shows that in almost half of U.S. states, the typical family of four doesn't earn enough to afford a regular three-bedroom home.
The Most Expensive States
Hawaii tops the list as the most expensive state to buy a home. The average three-bedroom home there costs about $796,947! To afford this, a family would need to earn more than $229,341 per year. But the typical Hawaiian family only makes around $133,656 – that's 41% less than what they'd need.
Massachusetts is in 2nd place. The income required to buy a home in MA is $215,816. The average cost of a home in MA is currently $749,950 (April 2025).
California comes in third place. Families there need to earn about $209,643 to afford an average home costing $728,500. The problem? Most California families only make about $128,533 per year.
What Makes a Home "Affordable"?
When experts figured out these numbers, they used a 6.65% interest rate on a 30-year mortgage. They also included property taxes and insurance costs. They assumed families would make a 10% down payment.
Housing experts say that if you spend more than 30% of your income on housing, you're "cost-burdened." This means you might struggle to afford other important things like food, healthcare, and education.
Good News: Affordable Options Exist
The Midwest offers the best deals for families looking to buy homes. In Ohio (the most affordable state), a typical family makes about $113,453 per year, which is more than enough to afford a median home price of $259,450.
Other affordable states include Illinois, Michigan, Iowa, and Pennsylvania, where families earn 47-50% more than what's needed to buy an average home.
Is The American Dream Out of Reach in Your State?
Get your Free Seller Check List here if you are preparing to sell!
Best wishes, Heath
Comments(0)