Real Estate Related

Here’s How Much You Need to Make in Every State to Buy a Home

Written by Guest Post

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 ensure you spend your money wisely.

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?

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Alabama

Salary needed to afford a home: $47,960

Median household income: $46,257

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Alaska

Salary needed to afford a home: $67,280

Median household income: $76,440

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Arizona

Salary needed to afford a home: $67,280

Median household income: $53,558

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Arkansas

Salary needed to afford a home: $41,040

Median household income: $44,334

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California

Salary needed to afford a home: $120,120

Median household income: $67,739

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Colorado

Salary needed to afford a home: $100,200

Median household income: $65,685

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Connecticut

Salary needed to afford a home: $75,280

Median household income: $73,433

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Delaware

Salary needed to afford a home: $67,960

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Median household income: $61,757

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Washington, DC

Salary needed to afford a home: $138,440

Median household income: $75,506

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Florida

Salary needed to afford a home: $70,360

Median household income: $50,860

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Georgia

Salary needed to afford a home: $59,520

Median household income: $53,559

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Hawaii

Salary needed to afford a home: $153,520

Median household income: $74,511

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Idaho

Salary needed to afford a home: $70,360

Median household income: $51,807

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Illinois

Salary needed to afford a home: $53,880

Median household income: $60,960

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Indiana

Salary needed to afford a home: $42,560

Median household income: $52,314

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Iowa

Salary needed to afford a home: $44,360

Median household income: $56,247

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Kansas

Salary needed to afford a home: $43,160

Median household income: $54,935

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Kentucky

Salary needed to afford a home: $44,360

Median household income: $46,659

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Louisiana

Salary needed to afford a home: $50,320

Median household income: $45,146

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Maine

Salary needed to afford a home: $55,520

Median household income: $53,079

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Maryland

Salary needed to afford a home: $72,200

Median household income: $78,945

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Massachusetts

Salary needed to afford a home: $101,320

Median household income: $75,297

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Michigan

Salary needed to afford a home: $40,800

Median household income: $52,492

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Minnesota

Salary needed to afford a home: $64,720

Median household income: $65,599

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Mississippi

Salary needed to afford a home: $44,360

Median household income: $41,754

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Missouri

Salary needed to afford a home: $42,200

Median household income: $51,746

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Montana

Salary needed to afford a home: $75,520

Median household income: $50,027

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Nebraska

Salary needed to afford a home: $51,520

Median household income: $56,927

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Nevada

Salary needed to afford a home: $73,120

Median household income: $55,180

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New Hampshire

Salary needed to afford a home: $68,440

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Median household income: $70,936

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New Jersey

Salary needed to afford a home: $69,640

Median household income: $76,126

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New Mexico

Salary needed to afford a home: $54,880

Median household income: $46,748

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New York

Salary needed to afford a home: $91,720

Median household income: $62,909

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North Carolina

Salary needed to afford a home: $63,840

Median household income: $50,584

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North Dakota

Salary needed to afford a home: $56,000

Median household income: $60,656

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Ohio

Salary needed to afford a home: $38,400

Median household income: $52,334

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Oklahoma

Salary needed to afford a home: $45,320

Median household income: $49,176

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Oregon

Salary needed to afford a home: $87,160

Median household income: $57,532

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Pennsylvania

Salary needed to afford a home: $47,960

Median household income: $56,907

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Rhode Island

Salary needed to afford a home: $69,640

Median household income: $60,596

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South Carolina

Salary needed to afford a home: $58,840

Median household income: $49,501

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South Dakota

Salary needed to afford a home: $55,360

Median household income: $54,467

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Tennessee

Salary needed to afford a home: $55,760

Median household income: $48,547

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Texas

Salary needed to afford a home: $66,080

Median household income: $56,565

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Utah

Salary needed to afford a home: $83,720

Median household income: $65,977

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Vermont

Salary needed to afford a home: $62,600

Median household income: $57,677

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Virginia

Salary needed to afford a home: $71,960

Median household income: $68,114

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Washington

Salary needed to afford a home: $87,040

Median household income: $67,106

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West Virginia

Salary needed to afford a home: $38,320

Median household income: $43,385

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Wisconsin

Salary needed to afford a home: $50,080

Median household income: $56,811

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Wyoming

Salary needed to afford a home: $58,000

Median household income: $59,882

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