The median American home value is $217,600, or 3.6 times the median annual household income of $60,336. Nationwide, real estate values vary considerably across the country, and in some states, owning a home is far less expensive than in others. And, in one state, the median home value is almost three times higher than the national figure.
24/7 Wall St. reviewed median home value from the U.S. Census Bureau 2017 American Community Survey to determine what a typical home costs in every state. Median home values vary from less than $120,000 in some states to more than four times that amount.
The overall cost of living tends to be higher in states with the most expensive homes. In all 10 of the states with the lowest median home value, goods and services cost at least 10% less than they do on average nationwide. Similarly, goods and services are more expensive than average in eight of the 10 states with the highest median home value.
Higher home values and higher costs of living generally reflect higher incomes. The correlation, however, is not perfect, and the state with the highest median home value is not the wealthiest state in America. The home values in Hawaii top the list of the 50 states at $617,400. The median household income in the state is $77,765, the third highest among all states.
Additionally, while those living in states with higher real estate values are more likely to have higher incomes, they are also more likely to borrow more to finance their home. Eight of the 10 states with the highest median home value also rank among the 10 states with the most mortgage debt.
Hawaii is not just at the high end of the list but home values there are a multiple of West Virginia at under $120,000 which is the lowest of what a typical home costs in every state.