Key Highlights

  • Pandemic-inspired race to buy suburban homes sparked national affordability crisis
  • State-by-state earnings needed to buy average home in each state

Pandemic-Inspired Race to Buy Home in Suburbs

As the COVID pandemic seeped into the American landscape and remote working reached its tipping point, those who could afford to take advantage of historically low interest rates and buy a single-family home in the suburbs did so. One of the results?  According to the US Census Bureau, US homeownership rates jumped nearly +3% to approximately 67% in 2020.

Race to Become Homeowners Translated into Affordability Crisis

 Another result from this pandemic-inspired race to become homeowners is that surging demand for housing amidst record low inventory levels nationwide has ignited a steep spike in home prices.

Now, despite record-low mortgage interest rates, many potential homebuyers will remain “potential” in states that require salaries higher than buyers’ current median incomes.

Yearly Income Required in Order to Afford Average Home in All States 

With the national median home price of $346,800here’s a look at necessary yearly incomes to buy a home in all 50 states (figures based on average home value and average monthly payment in each state), according to the career planning site 

Alaska                                 $60K – $69K

Washington                          $80K+

Oregon                                $70K – $79K

California                              $80K+

Hawaii                                  $80K+

Idaho                                   $60K – $69K

Nevada                                $70K – $79K

Utah                                    $70K – $79K

Arizona                                $60K – $69K

Montana                              $60K – $69K

Wyoming                             $50K – $59K

Colorado                             $80K+

North Dakota                      $50K – $59K

South Dakota                      $50K – $59K

Nebraska                             $40K – $49K

Kansas                                 $40K – $49K

Oklahoma                            $40K – $49K

Texas                                   $50K – $59K

Minnesota                             $60K – $69K

Iowa                                    $40K – $49K

Missouri                                $40K – $49K

Arkansas                               $40K – $49K

Louisiana                               $40K – $49K

Wisconsin                              $50K – $59K

Illinois                                   $50K – $59K

Indiana                                  $40K – $49K

Kentucky                                $40K – $49K

Tennessee                              $50K – $59K

Mississippi                              $40K – $49K

Michigan                                $40K – $49K

Ohio                                     $40K – $49K

West Virginia                         $40K – $49K

North Carolina                       $50K – $59K

Alabama                               $40K – $49K

Pennsylvania                         $50K – $59K

Virginia                                $60K – $69K

South Carolina                      $50K – $59K

Georgia                                $50K – $59K

New York                              $80K+

New Jersey                           $80K+

Maryland                              $60K – $69K

Florida                                 $60K – $69K

Connecticut                         $60K – $69K

Delaware                             $60K – $69K

Vermont                              $60K – $69K

Rhode Island                        $70K – $79K

New Hampshire                    $70K – $79K

Massachusetts                      $80K+

Maine                                  $60K – $69K

Do these numbers jive with your numbers?

Price Appreciation Now Outpacing Wage Appreciation in 90% of National Housing Markets

 According to ATTOM Data Solutions, home price appreciation is and has been outpacing wage appreciation for a while now.   Median prices of single-family homes and condominiums are less affordable than historical averages in 63% of US counties.  This is an increase of +9% from one year ago.

Something that may help…President Biden is proposing a $15,000 first-time homebuyer tax credit to help buyers come up with a down payment in the midst of this affordability crisis.

Thanks to CNBC.



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