Price-to-income ratios, mortgage burden, and affordability data for all 50 states
Housing affordability remains the defining challenge of the American real estate market in 2026. The national median home price sits near $410,800, while the median household income is approximately $91,260. That creates a national price-to-income ratio of about 4.5, well above the historically "affordable" threshold of 3.0. For millions of families, homeownership feels increasingly out of reach.
However, affordability varies dramatically from state to state. In West Virginia, the median home costs just 2.48 times the median income. In Hawaii, it costs nearly 9 times the median income. Understanding these differences is critical for homebuyers weighing relocation, for investors seeking value markets, and for policymakers working to expand access to housing. A knowledgeable real estate agent near you can help you navigate local market conditions.
This comprehensive guide ranks all 50 states plus the District of Columbia on housing affordability. We analyze price-to-income ratios, monthly mortgage burden as a percentage of income, the National Association of REALTORS affordability index, and the minimum income needed to purchase a home in each state. Every data point uses 2025 Q4 median home prices and 2024 Census American Community Survey income figures.
Whether you are a first-time buyer searching for an affordable market or a homeowner curious about your state's ranking, this resource provides the data you need. We also compare home prices by state and identify the cheapest states to buy a house for those prioritizing affordability above all else.
Price-to-income ratio of just 2.48. Mortgage payments consume only 16.1% of median income.
Price-to-income ratio of 8.96. Buyers need over $145,000 in annual income to qualify.
Eight of the ten most affordable states are in the Midwest or South regions of the country.
Rhode Island, Vermont, and New Hampshire posted the highest year-over-year price increases above 7%.
In 20+ states, the median mortgage payment exceeds the recommended 28% of gross income threshold.
Hawaii's ratio (8.96) is 3.6 times higher than West Virginia's (2.48), the widest gap in a decade.
States ranked from most affordable to least affordable by price-to-income ratio. Lower ratios indicate better affordability. A ratio below 3.5 is considered affordable by historical standards.
| Rank | State | Median Price | Median Income | Ratio | Index | YoY |
|---|---|---|---|---|---|---|
| 1 | West Virginia (WV) | $130,000 | $52,520 | 2.48 | 161.4 | +3% |
| 2 | Iowa (IA) | $205,000 | $72,429 | 2.83 | 141.2 | +3.1% |
| 3 | Kansas (KS) | $215,000 | $70,139 | 3.07 | 130.4 | +3.4% |
| 4 | Mississippi (MS) | $175,000 | $52,985 | 3.30 | 120.9 | +2.2% |
| 5 | Nebraska (NE) | $240,000 | $72,205 | 3.32 | 120.1 | +4.4% |
| 6 | Ohio (OH) | $220,000 | $65,718 | 3.35 | 119.4 | +4.5% |
| 7 | Oklahoma (OK) | $200,000 | $59,673 | 3.35 | 119.2 | +2.7% |
| 8 | Arkansas (AR) | $185,000 | $54,644 | 3.39 | 118 | +2.8% |
| 9 | Missouri (MO) | $225,000 | $65,920 | 3.41 | 117.1 | +3.6% |
| 10 | Kentucky (KY) | $200,000 | $57,614 | 3.47 | 115.1 | +4% |
| 11 | Illinois (IL) | $275,000 | $78,433 | 3.51 | 113.9 | +4.2% |
| 12 | Louisiana (LA) | $195,000 | $55,416 | 3.52 | 113.5 | +1.8% |
| 13 | Indiana (IN) | $230,000 | $65,044 | 3.54 | 112.9 | +4.6% |
| 14 | North Dakota (ND) | $250,000 | $69,946 | 3.57 | 111.7 | +2.5% |
| 15 | Michigan (MI) | $240,000 | $66,986 | 3.58 | 111.5 | +4.7% |
| 16 | Pennsylvania (PA) | $265,000 | $73,170 | 3.62 | 110.3 | +4.8% |
| 17 | Alabama (AL) | $215,000 | $56,929 | 3.78 | 105.8 | +3.2% |
| 18 | Wisconsin (WI) | $280,000 | $72,458 | 3.86 | 103.4 | +4.8% |
| 19 | Minnesota (MN) | $330,000 | $84,313 | 3.91 | 102.1 | +3.9% |
| 20 | South Dakota (SD) | $280,000 | $68,374 | 4.10 | 97.6 | +3.8% |
| 21 | Texas (TX) | $305,000 | $73,035 | 4.18 | 95.6 | +1.5% |
| 22 | Maryland (MD) | $400,000 | $94,991 | 4.21 | 94.9 | +4.3% |
| 23 | Alaska (AK) | $360,000 | $84,444 | 4.26 | 93.7 | +2.1% |
| 24 | Connecticut (CT) | $385,000 | $90,213 | 4.27 | 93.6 | +7.1% |
| 25 | Wyoming (WY) | $310,000 | $69,464 | 4.46 | 89.5 | +2.9% |
| 26 | Virginia (VA) | $395,000 | $87,249 | 4.53 | 88.2 | +4.2% |
| 27 | Delaware (DE) | $350,000 | $75,932 | 4.61 | 86.7 | +4.5% |
| 28 | Georgia (GA) | $315,000 | $65,030 | 4.84 | 82.5 | +3.5% |
| 29 | New Jersey (NJ) | $475,000 | $97,126 | 4.89 | 81.7 | +6.9% |
| 30 | North Carolina (NC) | $320,000 | $64,140 | 4.99 | 80.1 | +4.3% |
| 31 | Tennessee (TN) | $320,000 | $63,389 | 5.05 | 79.1 | +3.5% |
| 32 | New Hampshire (NH) | $460,000 | $90,845 | 5.06 | 78.9 | +7.3% |
| 33 | South Carolina (SC) | $310,000 | $60,606 | 5.12 | 78.1 | +4% |
| 34 | New Mexico (NM) | $290,000 | $56,169 | 5.16 | 77.4 | +3.7% |
| 35 | Vermont (VT) | $370,000 | $69,543 | 5.32 | 75.1 | +7.5% |
| 36 | Maine (ME) | $355,000 | $66,068 | 5.37 | 74.4 | +6.8% |
| 37 | Utah (UT) | $480,000 | $86,833 | 5.53 | 72.3 | +3.2% |
| 38 | Arizona (AZ) | $410,000 | $72,581 | 5.65 | 70.7 | +4.1% |
| 39 | Rhode Island (RI) | $430,000 | $74,008 | 5.81 | 68.7 | +8.2% |
| 40 | Florida (FL) | $395,000 | $67,917 | 5.82 | 68.7 | +2.9% |
| 41 | New York (NY) | $450,000 | $75,157 | 5.99 | 66.7 | +4.1% |
| 42 | Nevada (NV) | $420,000 | $68,486 | 6.13 | 65.2 | +3.3% |
| 43 | District of Columbia (DC) | $625,000 | $101,722 | 6.14 | 65 | +3.4% |
| 44 | Colorado (CO) | $545,000 | $87,598 | 6.22 | 64.2 | +3.8% |
| 45 | Massachusetts (MA) | $610,000 | $96,505 | 6.32 | 63.2 | +5.5% |
| 46 | Idaho (ID) | $430,000 | $67,805 | 6.34 | 63 | +2.4% |
| 47 | Oregon (OR) | $490,000 | $76,362 | 6.42 | 62.2 | +3.4% |
| 48 | Washington (WA) | $580,000 | $90,325 | 6.42 | 62.2 | +4.6% |
| 49 | Montana (MT) | $450,000 | $63,249 | 7.11 | 56.1 | +3.1% |
| 50 | California (CA) | $785,000 | $91,905 | 8.54 | 46.8 | +5.2% |
| 51 | Hawaii (HI) | $850,000 | $94,814 | 8.96 | 44.6 | +4.8% |
Ratio = Price-to-Income. Index = NAR-style Affordability Index (100+ = affordable). YoY = year-over-year price change.
Looking for raw price data?
See our complete home prices by state guide for median values, price trends, and metro-level data. Or explore the cheapest states to buy a house for top budget-friendly markets.
These states offer the best value for homebuyers, with price-to-income ratios well below the national average. In each of these markets, the median household can comfortably afford the median home.
West Virginia tops the affordability charts with the lowest price-to-income ratio in the nation. The median home here costs $130,000, and monthly mortgage payments take up just 15.5% of income. A household earning the state median needs only $29,057 to qualify, well within reach for most working families.
Iowa combines a strong job market with affordable housing, making it a standout for value. The median home costs $205,000 with an income of $72,429, producing a ratio of just 2.83. Monthly payments represent only 17.7% of the typical household's earnings.
Kansas offers a low cost of living and steady housing prices. The median home at $215,000 is well within reach for households earning the state median of $70,139. The affordability index of 130.4 indicates strong buying power.
Mississippi has the second-lowest median home price in the nation at $175,000. While incomes are also lower at $52,985, the ratio of 3.30 still makes homeownership accessible. Monthly mortgage payments here are among the lowest in America at $913.
Nebraska's combination of rising incomes and moderate home prices keeps the state highly affordable. The $240,000 median home against a $72,205 median income results in manageable monthly payments of $1,252.
Ohio has seen price gains in recent years but remains one of the most affordable states. The median home of $220,000 against $65,718 in income keeps housing within reach. Cities like Columbus and Cincinnati offer urban amenities at a fraction of coastal costs.
Oklahoma benefits from low land costs and minimal regulatory burden on construction. At $200,000, the median home is affordable for households earning $59,673. Monthly payments take just 21% of income.
Arkansas offers some of the most affordable housing in the South. The $185,000 median home combined with a household income of $54,644 creates a ratio of 3.39. Buyers can find even lower prices in rural areas of the state.
Indiana's affordability extends across both urban and rural markets. The $230,000 median home is attainable for families earning $65,044, and the state's diversified economy supports stable housing demand.
Missouri rounds out the top 10 with a price-to-income ratio of 3.41. The median home costs $225,000, and cities like Kansas City and St. Louis offer robust job markets paired with affordable housing options.
These states have the highest price-to-income ratios, meaning the median home is far beyond what the typical household can comfortably afford. Buyers in these markets often need dual incomes or significant savings.
Hawaii is the least affordable state in America with a staggering 8.96 price-to-income ratio. The median home costs $850,000, while the median income is $94,814. Buyers here need a household income of at least $189,986 to meet the 28% DTI guideline. Limited buildable land and high demand from mainland buyers keep prices elevated.
California's median home price of $785,000 against a $91,905 income creates a ratio of 8.54. The state's housing shortage, strict zoning laws, and strong tech economy contribute to prices that have outpaced wages for decades. Monthly mortgage payments consume 53.5% of the typical household's income.
Montana's combination of rising demand from remote workers and limited housing supply has pushed prices to $450,000. With a median income of just $63,249, the 7.12 ratio makes it one of the most unaffordable states relative to local wages.
Washington state's $580,000 median home requires a substantial income to afford. The Seattle metro area drives much of this cost, though prices remain high statewide. Buyers need $129,643 annually to qualify for the median home.
Oregon's median home at $490,000 against an income of $76,362 results in a 6.42 ratio. Portland's housing market has cooled slightly from pandemic highs, but affordability remains a major challenge for local buyers.
Massachusetts benefits from high incomes at $96,505, but the $610,000 median home still creates a 6.32 ratio. The Boston metro area, strong healthcare and education sectors, and limited new construction keep the market tight.
Colorado's $545,000 median home against $87,598 in income produces a 6.22 ratio. Denver and the Front Range corridor drive prices, though mountain communities have seen even steeper increases in recent years.
New York's $450,000 statewide median masks enormous variation. The New York City metro pushes costs far higher, while upstate markets are significantly more affordable. The statewide ratio of 5.99 reflects this blended picture.
Rhode Island has seen the fastest price growth in the country at 8.2% year over year. The $430,000 median home against $74,008 in income creates a 5.81 ratio that has worsened rapidly over the past two years.
Idaho's pandemic-era price surge brought the median home to $430,000. With a median income of $67,805, the 6.34 ratio represents a dramatic shift from just five years ago when Idaho was considered an affordable state.
Explore programs that can reduce your upfront costs and make homeownership more accessible, even in expensive markets.
Financial experts recommend spending no more than 28% of gross income on housing costs. This table shows what percentage of the median household income goes toward the median mortgage payment in each state. States in red exceed the 28% threshold.
| Rank | State | Monthly Payment | Monthly Income | % of Income | Status |
|---|---|---|---|---|---|
| 1 | Hawaii | $4,433 | $7,901 | 56.1% | Burdened |
| 2 | California | $4,094 | $7,659 | 53.5% | Burdened |
| 3 | Montana | $2,347 | $5,271 | 44.5% | Burdened |
| 4 | Oregon | $2,556 | $6,364 | 40.2% | Burdened |
| 5 | Washington | $3,025 | $7,527 | 40.2% | Burdened |
| 6 | Idaho | $2,243 | $5,650 | 39.7% | Burdened |
| 7 | Massachusetts | $3,181 | $8,042 | 39.6% | Burdened |
| 8 | Colorado | $2,842 | $7,300 | 38.9% | Burdened |
| 9 | District of Columbia | $3,260 | $8,477 | 38.5% | Burdened |
| 10 | Nevada | $2,190 | $5,707 | 38.4% | Burdened |
| 11 | New York | $2,347 | $6,263 | 37.5% | Burdened |
| 12 | Florida | $2,060 | $5,660 | 36.4% | Burdened |
| 13 | Rhode Island | $2,243 | $6,167 | 36.4% | Burdened |
| 14 | Arizona | $2,138 | $6,048 | 35.3% | Burdened |
| 15 | Utah | $2,503 | $7,236 | 34.6% | Stretched |
| 16 | Maine | $1,851 | $5,506 | 33.6% | Stretched |
| 17 | Vermont | $1,930 | $5,795 | 33.3% | Stretched |
| 18 | New Mexico | $1,512 | $4,681 | 32.3% | Stretched |
| 19 | South Carolina | $1,617 | $5,051 | 32% | Stretched |
| 20 | New Hampshire | $2,399 | $7,570 | 31.7% | Stretched |
| 21 | Tennessee | $1,669 | $5,282 | 31.6% | Stretched |
| 22 | North Carolina | $1,669 | $5,345 | 31.2% | Stretched |
| 23 | New Jersey | $2,477 | $8,094 | 30.6% | Stretched |
| 24 | Georgia | $1,643 | $5,419 | 30.3% | Stretched |
| 25 | Delaware | $1,825 | $6,328 | 28.8% | Stretched |
| 26 | Virginia | $2,060 | $7,271 | 28.3% | Stretched |
| 27 | Wyoming | $1,617 | $5,789 | 27.9% | Affordable |
| 28 | Alaska | $1,878 | $7,037 | 26.7% | Affordable |
| 29 | Connecticut | $2,008 | $7,518 | 26.7% | Affordable |
| 30 | Maryland | $2,086 | $7,916 | 26.4% | Affordable |
| 31 | Texas | $1,591 | $6,086 | 26.1% | Affordable |
| 32 | South Dakota | $1,460 | $5,698 | 25.6% | Affordable |
| 33 | Minnesota | $1,721 | $7,026 | 24.5% | Affordable |
| 34 | Wisconsin | $1,460 | $6,038 | 24.2% | Affordable |
| 35 | Alabama | $1,121 | $4,744 | 23.6% | Affordable |
| 36 | Pennsylvania | $1,382 | $6,098 | 22.7% | Affordable |
| 37 | Michigan | $1,252 | $5,582 | 22.4% | Affordable |
| 38 | North Dakota | $1,304 | $5,829 | 22.4% | Affordable |
| 39 | Indiana | $1,200 | $5,420 | 22.1% | Affordable |
| 40 | Louisiana | $1,017 | $4,618 | 22% | Affordable |
| 41 | Illinois | $1,434 | $6,536 | 21.9% | Affordable |
| 42 | Kentucky | $1,043 | $4,801 | 21.7% | Affordable |
| 43 | Missouri | $1,173 | $5,493 | 21.4% | Affordable |
| 44 | Arkansas | $965 | $4,554 | 21.2% | Affordable |
| 45 | Oklahoma | $1,043 | $4,973 | 21% | Affordable |
| 46 | Ohio | $1,147 | $5,477 | 20.9% | Affordable |
| 47 | Nebraska | $1,252 | $6,017 | 20.8% | Affordable |
| 48 | Mississippi | $913 | $4,415 | 20.7% | Affordable |
| 49 | Kansas | $1,121 | $5,845 | 19.2% | Affordable |
| 50 | Iowa | $1,069 | $6,036 | 17.7% | Affordable |
| 51 | West Virginia | $678 | $4,377 | 15.5% | Affordable |
Monthly payment based on 20% down payment, 6.8% fixed rate, 30-year term. Does not include property taxes or insurance.
Don't forget property taxes and closing costs.
These figures show mortgage principal and interest only. Review our property tax by state and closing costs by state guides for the complete picture of homeownership costs.
Housing affordability has deteriorated significantly over the past decade. In 2015, the national price-to-income ratio was 3.7, meaning the typical home cost 3.7 times the typical household income. By 2022, that ratio had spiked to 5.2, driven by pandemic-era price surges and low inventory. While the ratio has moderated to about 4.5 in 2025, it remains well above historical norms.
The sharpest deterioration occurred between 2020 and 2022, when home prices jumped over 35% while incomes grew only about 7%. Higher mortgage rates since 2022 have slowed price growth but created a new affordability barrier. A buyer purchasing at a 3% rate in 2021 paid roughly 30% less per month than a buyer at 6.8% today for the same home price.
| Year | Median Home Price | Median Income | Price-to-Income Ratio |
|---|---|---|---|
| 2015 | $294,200 | $79,540 | 3.7x |
| 2016 | $307,800 | $80,944 | 3.8x |
| 2017 | $323,500 | $82,900 | 3.9x |
| 2018 | $331,800 | $82,900 | 4.0x |
| 2019 | $321,500 | $82,462 | 3.9x |
| 2020 | $336,900 | $84,072 | 4.0x |
| 2021 | $396,500 | $86,246 | 4.6x |
| 2022 | $457,300 | $87,864 | 5.2x |
| 2023 | $431,000 | $89,780 | 4.8x |
| 2024 | $412,300 | $89,610 | 4.6x |
| 2025 | $410,800 | $91,260 | 4.5x |
Looking ahead, affordability is unlikely to return to pre-2020 levels without a significant combination of increased housing supply, higher wages, or lower interest rates. The Federal Reserve's monetary policy decisions will play a central role. For a deeper look at rate trends, see our mortgage rate history page.
How much do you actually need to earn to buy the median home in your state? This table calculates the minimum annual household income required to afford the median home while keeping housing costs at or below 28% of gross income. This is the front-end debt-to-income (DTI) ratio that most lenders use as a qualifying threshold.
The calculation assumes a 20% down payment, a 6.8% fixed mortgage rate, and a 30-year loan term. It covers only principal and interest. Adding property taxes and homeowners insurance would increase the income needed by roughly 15% to 25% depending on the state. The "gap" column shows whether the median income in each state meets the qualifying threshold.
| Rank | State | Median Price | Income Needed | Median Income | Gap |
|---|---|---|---|---|---|
| 1 | Hawaii | $850,000 | $189,986 | $94,814 | $-95,172 |
| 2 | California | $785,000 | $175,457 | $91,905 | $-83,552 |
| 3 | District of Columbia | $625,000 | $139,714 | $101,722 | $-37,992 |
| 4 | Massachusetts | $610,000 | $136,329 | $96,505 | $-39,824 |
| 5 | Washington | $580,000 | $129,643 | $90,325 | $-39,318 |
| 6 | Colorado | $545,000 | $121,800 | $87,598 | $-34,202 |
| 7 | Oregon | $490,000 | $109,543 | $76,362 | $-33,181 |
| 8 | Utah | $480,000 | $107,271 | $86,833 | $-20,438 |
| 9 | New Jersey | $475,000 | $106,157 | $97,126 | $-9,031 |
| 10 | New Hampshire | $460,000 | $102,814 | $90,845 | $-11,969 |
| 11 | Montana | $450,000 | $100,586 | $63,249 | $-37,337 |
| 12 | New York | $450,000 | $100,586 | $75,157 | $-25,429 |
| 13 | Idaho | $430,000 | $96,129 | $67,805 | $-28,324 |
| 14 | Rhode Island | $430,000 | $96,129 | $74,008 | $-22,121 |
| 15 | Nevada | $420,000 | $93,857 | $68,486 | $-25,371 |
| 16 | Arizona | $410,000 | $91,629 | $72,581 | $-19,048 |
| 17 | Maryland | $400,000 | $89,400 | $94,991 | +$5,591 |
| 18 | Florida | $395,000 | $88,286 | $67,917 | $-20,369 |
| 19 | Virginia | $395,000 | $88,286 | $87,249 | $-1,037 |
| 20 | Connecticut | $385,000 | $86,057 | $90,213 | +$4,156 |
| 21 | Vermont | $370,000 | $82,714 | $69,543 | $-13,171 |
| 22 | Alaska | $360,000 | $80,486 | $84,444 | +$3,958 |
| 23 | Maine | $355,000 | $79,329 | $66,068 | $-13,261 |
| 24 | Delaware | $350,000 | $78,214 | $75,932 | $-2,282 |
| 25 | Minnesota | $330,000 | $73,757 | $84,313 | +$10,556 |
| 26 | North Carolina | $320,000 | $71,529 | $64,140 | $-7,389 |
| 27 | Tennessee | $320,000 | $71,529 | $63,389 | $-8,140 |
| 28 | Georgia | $315,000 | $70,414 | $65,030 | $-5,384 |
| 29 | South Carolina | $310,000 | $69,300 | $60,606 | $-8,694 |
| 30 | Wyoming | $310,000 | $69,300 | $69,464 | +$164 |
| 31 | Texas | $305,000 | $68,186 | $73,035 | +$4,849 |
| 32 | New Mexico | $290,000 | $64,800 | $56,169 | $-8,631 |
| 33 | South Dakota | $280,000 | $62,571 | $68,374 | +$5,803 |
| 34 | Wisconsin | $280,000 | $62,571 | $72,458 | +$9,887 |
| 35 | Illinois | $275,000 | $61,457 | $78,433 | +$16,976 |
| 36 | Pennsylvania | $265,000 | $59,229 | $73,170 | +$13,941 |
| 37 | North Dakota | $250,000 | $55,886 | $69,946 | +$14,060 |
| 38 | Michigan | $240,000 | $53,657 | $66,986 | +$13,329 |
| 39 | Nebraska | $240,000 | $53,657 | $72,205 | +$18,548 |
| 40 | Indiana | $230,000 | $51,429 | $65,044 | +$13,615 |
| 41 | Missouri | $225,000 | $50,271 | $65,920 | +$15,649 |
| 42 | Ohio | $220,000 | $49,157 | $65,718 | +$16,561 |
| 43 | Alabama | $215,000 | $48,043 | $56,929 | +$8,886 |
| 44 | Kansas | $215,000 | $48,043 | $70,139 | +$22,096 |
| 45 | Iowa | $205,000 | $45,814 | $72,429 | +$26,615 |
| 46 | Kentucky | $200,000 | $44,700 | $57,614 | +$12,914 |
| 47 | Oklahoma | $200,000 | $44,700 | $59,673 | +$14,973 |
| 48 | Louisiana | $195,000 | $43,586 | $55,416 | +$11,830 |
| 49 | Arkansas | $185,000 | $41,357 | $54,644 | +$13,287 |
| 50 | Mississippi | $175,000 | $39,129 | $52,985 | +$13,856 |
| 51 | West Virginia | $130,000 | $29,057 | $52,520 | +$23,463 |
Income needed calculated at 28% front-end DTI ratio. Assumes 20% down payment, 6.8% rate, 30-year fixed mortgage. Principal and interest only.
A positive gap (green) means the median household earns more than enough to qualify for the median home. A negative gap (red) means the typical household falls short and would need a higher down payment, a lower price point, or additional income to qualify. Buyers facing a gap should explore down payment assistance programs and first-time buyer programs.
Affordability patterns follow clear regional lines. The Midwest and parts of the South offer the most affordable markets, while the West and Northeast dominate the least affordable rankings.
Midwest: The Midwest is the most affordable region, with an average price-to-income ratio well below the national average. States like Iowa, Kansas, Ohio, and Indiana offer median homes under $250,000, paired with solid middle-class incomes. Housing supply has remained more balanced here, preventing the extreme price run-ups seen in coastal markets.
South: The South offers mixed affordability. States like Mississippi, West Virginia, Arkansas, and Alabama rank among the most affordable nationwide. However, Florida, Virginia, and Georgia have seen prices rise faster than incomes in recent years, particularly in metro areas like Miami, Atlanta, and Northern Virginia.
West: The West is the least affordable region overall. Hawaii, California, Oregon, Washington, Colorado, and Montana all carry price-to-income ratios above 6.0. Even traditionally affordable states like Idaho and Utah have seen dramatic price increases since 2020 due to remote work migration. Only New Mexico and Wyoming remain relatively affordable in the region.
Northeast: The Northeast shows the widest variation of any region. High-cost states like Massachusetts and New York sit alongside more affordable options like Pennsylvania. The region has seen rapid price appreciation in 2024 and 2025, led by Rhode Island, Vermont, and New Hampshire, as low inventory and pandemic-era migrants continue to drive demand.
Living in a high-cost state does not mean homeownership is impossible. These strategies can help you bridge the affordability gap and get into a home even when prices seem out of reach.
Most states offer grants or forgivable loans for qualifying buyers. These programs can cover 3% to 5% of the purchase price. See our state-by-state guide.
FHA, VA, and USDA loans offer lower down payments and reduced rates. Many state housing agencies also offer below-market rate mortgages. Learn more in our first-time buyer guide.
In some high-cost markets, renting and investing the difference can build more wealth. Run the numbers with our rent vs. buy comparison.
Commuter communities 30 to 60 minutes from major cities often cost 20% to 40% less. A local real estate agent can identify value pockets that still offer reasonable commute times.
Use our affordability calculator guide to determine exactly how much home you can carry based on your income, debts, and savings.
An experienced real estate agent knows which neighborhoods are undervalued and can negotiate more aggressively on your behalf. See what agents earn by state.
West Virginia is the most affordable state with a price-to-income ratio of just 2.48. The median home costs $130,000 against a median household income of $52,520. Monthly mortgage payments on the median home are approximately $678, consuming only about 15.5% of the median income. Mississippi, Iowa, and Kansas round out the top four most affordable states.
The housing affordability index (HAI) measures whether a typical family earns enough income to qualify for a mortgage on a median-priced home. A score of 100 means the median household earns exactly enough to qualify. Scores above 100 indicate the family has more than enough income, meaning greater affordability. Scores below 100 mean the typical family falls short. The index assumes a 25% qualifying ratio, current mortgage rates, and a 20% down payment. This methodology was developed by the National Association of REALTORS and is widely used by economists and policymakers.
To afford the median home in California at $785,000, you need a household income of approximately $175,457 per year. This assumes a 20% down payment ($157,000), a 6.8% mortgage rate, and housing costs at 28% of gross income. The median household income in California is $91,905, leaving a gap of roughly $83,552. This is why many California buyers rely on dual incomes, family help, or first-time buyer assistance programs.
Housing has become significantly less affordable over the past decade. The national price-to-income ratio rose from 3.7 in 2015 to a peak of 5.2 in 2022. It has since improved modestly to 4.5 in 2025, but remains well above historical norms. The primary drivers are limited housing supply, higher construction costs, and elevated mortgage rates. While some markets have seen price corrections (particularly in Texas and parts of Florida), most states are still far less affordable than they were before the pandemic. First-time buyers face the steepest challenge, as starter home inventory remains at historic lows.
The widely accepted guideline is the "28/36 rule." No more than 28% of gross monthly income should go to housing costs (mortgage, taxes, insurance). No more than 36% should go to total debt payments (housing plus car loans, student loans, credit cards). Some lenders will approve loans at higher ratios, but exceeding 28% on housing increases the risk of financial stress. In our analysis, over 20 states have median mortgage payments that exceed 28% of the median income, meaning the typical household is technically "cost-burdened" by housing in those states.
The states with the fastest-rising home prices (and therefore fastest-declining affordability) are Rhode Island (+8.2% YoY), Vermont (+7.5%), New Hampshire (+7.3%), Connecticut (+7.1%), and New Jersey (+6.9%). These Northeastern states benefit from limited new construction, strong demand from relocating buyers, and tight inventory. On the flip side, states like Texas (+1.5%), Louisiana (+1.8%), and Alaska (+2.1%) have seen much slower price growth, preserving affordability. For a deeper comparison, see our home prices by state page.
Median Home Prices: State-level median home prices are sourced from Zillow Home Value Index (ZHVI) and Redfin median sale price data for Q4 2025. Where data sources differed, we averaged the two values to produce the most representative figure.
Median Household Income: Income figures come from the U.S. Census Bureau's American Community Survey (ACS) 2024 1-year estimates, table B19013. These represent the most recent official income data available at the state level.
Price-to-Income Ratio: Calculated by dividing the median home price by the median household income. A ratio of 3.0 or below is historically considered affordable. Ratios above 5.0 indicate significant affordability challenges.
Monthly Mortgage Payment: Calculated using a 20% down payment, 6.8% fixed interest rate, and 30-year amortization schedule. The payment formula uses the standard annuity formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the loan amount, r is the monthly interest rate, and n is the number of payments (360).
Percent of Income for Housing: Monthly mortgage payment divided by monthly gross income (annual income / 12), expressed as a percentage. This figure covers principal and interest only, not property taxes, insurance, or HOA fees.
Affordability Index: Modeled after the National Association of REALTORS Housing Affordability Index. Calculated as (median income x 0.25) / (annual mortgage payment) x 100. A score of 100 means the median household earns exactly enough to qualify. Higher scores indicate greater affordability.
Income Needed to Buy: The annual household income required to keep the median mortgage payment at or below 28% of gross income. Calculated as (monthly payment x 12) / 0.28.
If you reference this data in your own research or content, please use the following citation:
"Housing Affordability by State: 2026 Data for All 50 States." Real Estate Agent Near Me, 15 Feb. 2026, realestateagentnearme.com/housing-affordability-by-state/.