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Chances are you’ve considered how much money you would need to earn in order to buy a home. The answer, of course, depends largely on where you live. To give you an idea, finance website HowMuch.net recently crunched the housing affordability numbers for each state.
To arrive at its estimates, the website layered in several factors. The team collected average home prices in every state from Zillow, then plugged those figures into a mortgage calculator to determine monthly payments. HowMuch.net considered an interest rate that varied between 4 and 5 percent in each state. Also, it was assumed buyers were contributing a 10-percent down payment.
Given that many financial advisors recommend the total cost of housing take up no more than 30 percent of gross income (i.e. the amount before taxes, retirement savings, etc.), the data team used that rule as a benchmark to calculate the minimum salary needed to afford the average home in each state. The figures are based on 30-year mortgages.
Next, we took HowMuch.net’s findings a step further by including the latest U.S. Census Bureau data on median household income to help illustrate how affordable a home purchase may actually be for the average person living in that state.
Ready to see how your state fares when it comes to affordability and home prices?
Alabama
Salary needed to afford a home: $47,960
Median household income: $46,257
Alaska
Salary needed to afford a home: $67,280
Median household income: $76,440
Arizona
Salary needed to afford a home: $67,280
Median household income: $53,558
Arkansas
Salary needed to afford a home: $41,040
Median household income: $44,334
California
Salary needed to afford a home: $120,120
Median household income: $67,739
Getty Images | Justin Sullivan
Colorado
Salary needed to afford a home: $100,200
Median household income: $65,685
Connecticut
Salary needed to afford a home: $75,280
Median household income: $73,433
Delaware
Salary needed to afford a home: $67,960
Median household income: $61,757
District Of Columbia
Salary needed to afford a home: $138,440
Median household income: $75,506
Florida
Salary needed to afford a home: $70,360
Median household income: $50,860
Georgia
Salary needed to afford a home: $59,520
Median household income: $53,559
Hawaii
Salary needed to afford a home: $153,52o
Median household income: $74,511
Idaho
Salary needed to afford a home: $70,360
Median household income: $51,807
Illinois
Salary needed to afford a home: $53,880
Median household income: $60,960
Indiana
Salary needed to afford a home: $42,560
Median household income: $52,314
Iowa
Salary needed to afford a home: $44,360
Median household income: $56,247
Kansas
Salary needed to afford a home: $43,160
Median household income: $54,935
Kentucky
Salary needed to afford a home: $44,360
Median household income: $46,659
Louisiana
Salary needed to afford a home: $50,320
Median household income: $45,146
Maine
Salary needed to afford a home: $55,520
Median household income: $53,079
Maryland
Salary needed to afford a home: $72,200
Median household income: $78,945
Massachusetts
Salary needed to afford a home: $101,320
Median household income: $75,297
Michigan
Salary needed to afford a home: $40,800
Median household income: $52,492
Getty Images | Chip Somodevilla
Minnesota
Salary needed to afford a home: $64,720
Median household income: $65,599
Mississippi
Salary needed to afford a home: $44,360
Median household income: $41,754
Missouri
Salary needed to afford a home: $42,200
Median household income: $51,746
Montana
Salary needed to afford a home: $75,520
Median household income: $50,027
Nebraska
Salary needed to afford a home: $51,520
Median household income: $56,927
Nevada
Salary needed to afford a home: $73,120
Median household income: $55,180
New Hampshire
Salary needed to afford a home: $68,440
Median household income: $70,936
New Jersey
Salary needed to afford a home: $69,640
Median household income: $76,126
New Mexico
Salary needed to afford a home: $54,880
Median household income: $46,748
New York
Salary needed to afford a home: $91,720
Median household income: $62,909
North Carolina
Salary needed to afford a home: $63,840
Median household income: $50,584
North Dakota
Salary needed to afford a home: $56,000
Median household income: $60,656
Ohio
Salary needed to afford a home: $38,400
Median household income: $52,334
Oklahoma
Salary needed to afford a home: $45,320
Median household income: $49,176
Oregon
Salary needed to afford a home: $87,160
Median household income: $57,532
Pennsylvania
Salary needed to afford a home: $47,960
Median household income: $56,907
Rhode Island
Salary needed to afford a home: $69,640
Median household income: $60,596
South Carolina
Salary needed to afford a home: $58,840
Median household income: $49,501
South Dakota
Salary needed to afford a home: $55,360
Median household income: $54,467
Tennessee
Salary needed to afford a home: $55,760
Median household income: $48,547
Texas
Salary needed to afford a home: $66,080
Median household income: $56,565
Utah
Salary needed to afford a home: $83,720
Median household income: $65,977
Vermont
Salary needed to afford a home: $62,600
Median household income: $57,677
Virginia
Salary needed to afford a home: $71,960
Median household income: $68,114
Washington
Salary needed to afford a home: $87,040
Median household income: $67,106
West Virginia
Salary needed to afford a home: $38,320
Median household income: $43,385
Wisconsin
Salary needed to afford a home: $50,080
Median household income: $56,811
Wyoming
Salary needed to afford a home: $58,000
Median household income: $59,882
About the Author
Brittany has contributed to publications including Men's Journal, Forbes, Women's Health, American Way, TripSavvy, Eat This, Not That!, Apartment Therapy, Denver Life Magazine, 5280, Livability, The Denver Post, Simplemost, USA Today Travel Tips, Make it Better, AAA publications, Reader's Digest, Discover Life and more. More.
