How Much You Really Need to Earn to Buy a Home in Every State

Last updated 04/07/2025 by

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Summary:

Home affordability in America is slipping further out of reach. In many states, the average family needs to earn far more than the median income to afford a home. This article breaks down what it takes to buy a home in each state—and how far off many households are from reaching that number.

So, how much do you need to earn to afford a home where you live? According to new data, it’s a lot more than most people think.

A recent analysis by Realtor.com shows the annual income needed to afford a median-priced home in each state, assuming a 10% down payment and that no more than 30% of your income goes to housing.

Spoiler: In 22 states, the average family doesn’t earn enough.

We’ve included a heatmap and full table below showing how much income you need to afford a home in every state—and how that stacks up against the actual median income for families.

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The home affordability gap is growing

The national median home price is about $400,000. To afford that, a household would need to make at least $120,000 a year—well above the national median household income, which hovers around $75,000.

Some states are more forgiving. In West Virginia, for example, you need just $55,039 to afford the average home. In California? Try $210,000.

Meanwhile, the median income for a family of four in California is only about $128,500. That leaves a gap of more than $80,000 between what people make and what they need to buy a home.

See how your state compares

Check out the interactive map below to see how your state stacks up. Then scroll down to the table to compare:

Median household income for a family of four
Median home price for three-bedroom home
Estimated income needed to afford said home.

Why the numbers don’t add up

Why is this gap happening? There are a few big reasons:

Home prices have surged while wages have not kept pace
Mortgage rates are high, increasing monthly payments even more
Inventory is low, driving up competition and prices

As a result, even families with decent incomes are being priced out—especially first-time buyers without equity from a previous home.

What you can do if you’re priced out

If you’re struggling to find a home in your budget, here are some strategies that could help:

Look for homes in lower-cost areas or states with a better affordability ratio
Consider a higher down payment to reduce your monthly mortgage
Explore first-time buyer assistance programs
Compare three to five mortgage lenders to find the best rates

Frequently asked questions

How much income do I need to buy a home?

It depends on where you live. Nationally, you may need to earn over $120,000 to afford a median-priced home with a 10% down payment.

What’s included in the “income needed” calculation?

It includes mortgage payments, property taxes, insurance, and assumes you spend no more than 30% of your income on housing.

Why is there such a big gap between income and affordability?

Because home prices and mortgage rates have climbed faster than wages in most parts of the country.

What can I do if I don’t earn enough to buy a home?

Look into government programs, lower-cost markets, or alternatives like rent-to-own and shared equity homeownership.

Key takeaways

In most states, the income needed to buy a home exceeds the median family income
California, Hawaii, and Massachusetts top the list of least affordable states
West Virginia, Mississippi, and Ohio are among the most affordable
Use the map and table to compare your state’s affordability

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