Since the onset of the COVID-19 pandemic, housing affordability has become one of the most critical economic issues in the United States. The S&P CoreLogic Case-Shiller US National Home Price Index indicates that housing costs have soared by 53% between January 2020 and September 2024. Broad economic factors such as limited supply, increased demand, and higher borrowing costs have driven these surging prices, impacting millions of American households and families.
While incomes have not risen at a comparable rate, the median home price has escalated to 4.9 times the median household income, a significant jump from a price-to-income ratio of 3.1 in 1990. This disparity has not only priced many Americans out of the housing market but has also increased the number of people who are excessively burdened by housing costs.
Financial experts generally advise that housing expenses should not exceed 30% of pre-tax income. However, from 2019 to 2022, the number of Americans stretching their budgets to afford housing grew by three million. With home prices and mortgage rates reaching near-record highs, those looking to purchase a home must plan their finances carefully.
Using data from various sources, 24/7 Wall St. calculated the income needed to comfortably afford a typical home in each state. Our analysis considers home prices, mortgage rates, property taxes, and insurance premiums. To provide a financial buffer, our calculations are based on the income required to allocate no more than 28% of annual earnings to housing costs. These figures are estimates and do not account for the savings necessary for a down payment.
As per Realtor.com, the median listing price for a home in the U.S. was $424,950 in October 2024. After an 8% down payment—common for first-time buyers—this results in a $390,954 30-year loan with an average interest rate of 6.84% as of November 2024, according to the Federal Reserve. Including property taxes (averaging 0.9% of the home’s value in 2022, per the Tax Foundation) and average homeowners insurance premiums (reported by Bankrate), the annual income needed to comfortably afford a home in the U.S. stands at $117,597. (Here is a look at the 15 U.S. cities with the highest rent prices.)
Importantly, these factors—median home list price, property tax rates, and insurance premiums—vary by state, affecting the income required to afford a home. In certain states, primarily in the Northeast and along the West Coast, potential homeowners need to earn over $100,000 annually to comfortably afford a median-priced home. This contrasts sharply with other regions where homeownership is more accessible. (Here is a look at the U.S. towns where home prices are still affordable.)
These are the states where you need to earn over $100,000 to buy a home.
Why It Matters
In recent years, limited supply and rising demand have fueled a surge in home prices. Rising housing costs have led to an affordability crisis, as the number of Americans spending over 30% of their income on housing has grown by the millions in recent years. Now, with home prices and mortgage rates near historic highs, home buyers need to budget carefully — and in some parts of the country, homeownership is accessible for a much broader range of incomes than in others.
Alaska
- Minimum annual income needed to afford a typical home: $115,232 (25th highest of 50 states)
- Est. monthly expenses for a typical home: $2,689 (25th highest of 50 states)
- Median home list price in October 2024: $425,000 (24th highest of 50 states)
- Avg. annual homeowners insurance premium: $82 (5th lowest of 50 states)
- Est. annual property tax payments: $4,536 (14th highest of 50 states)
- Effective property tax rate: 1.1% (16th highest of 50 states)
Arizona
- Minimum annual income needed to afford a typical home: $127,087 (17th highest of 50 states)
- Est. monthly expenses for a typical home: $2,965 (17th highest of 50 states)
- Median home list price in October 2024: $495,000 (16th highest of 50 states)
- Avg. annual homeowners insurance premium: $186 (21st highest of 50 states)
- Est. annual property tax payments: $2,203 (11th lowest of 50 states)
- Effective property tax rate: 0.4% (4th lowest of 50 states)
California
- Minimum annual income needed to afford a typical home: $194,364 (2nd highest of 50 states)
- Est. monthly expenses for a typical home: $4,535 (2nd highest of 50 states)
- Median home list price in October 2024: $759,500 (3rd highest of 50 states)
- Avg. annual homeowners insurance premium: $123 (18th lowest of 50 states)
- Est. annual property tax payments: $5,152 (11th highest of 50 states)
- Effective property tax rate: 0.7% (17th lowest of 50 states)
Colorado
- Minimum annual income needed to afford a typical home: $154,869 (10th highest of 50 states)
- Est. monthly expenses for a typical home: $3,614 (10th highest of 50 states)
- Median home list price in October 2024: $595,000 (8th highest of 50 states)
- Avg. annual homeowners insurance premium: $268 (9th highest of 50 states)
- Est. annual property tax payments: $2,705 (20th lowest of 50 states)
- Effective property tax rate: 0.5% (5th lowest of 50 states)
Connecticut
- Minimum annual income needed to afford a typical home: $149,973 (11th highest of 50 states)
- Est. monthly expenses for a typical home: $3,499 (11th highest of 50 states)
- Median home list price in October 2024: $499,994 (14th highest of 50 states)
- Avg. annual homeowners insurance premium: $134 (21st lowest of 50 states)
- Est. annual property tax payments: $8,921 (4th highest of 50 states)
- Effective property tax rate: 1.8% (3rd highest of 50 states)
Delaware
- Minimum annual income needed to afford a typical home: $121,415 (20th highest of 50 states)
- Est. monthly expenses for a typical home: $2,833 (20th highest of 50 states)
- Median home list price in October 2024: $487,450 (18th highest of 50 states)
- Avg. annual homeowners insurance premium: $81 (3rd lowest of 50 states)
- Est. annual property tax payments: $2,350 (14th lowest of 50 states)
- Effective property tax rate: 0.5% (9th lowest of 50 states)
Florida
- Minimum annual income needed to afford a typical home: $128,532 (16th highest of 50 states)
- Est. monthly expenses for a typical home: $2,999 (16th highest of 50 states)
- Median home list price in October 2024: $434,995 (22nd highest of 50 states)
- Avg. annual homeowners insurance premium: $461 (2nd highest of 50 states)
- Est. annual property tax payments: $3,084 (23rd lowest of 50 states)
- Effective property tax rate: 0.7% (20th lowest of 50 states)
Georgia
- Minimum annual income needed to afford a typical home: $106,007 (18th lowest of 50 states)
- Est. monthly expenses for a typical home: $2,474 (18th lowest of 50 states)
- Median home list price in October 2024: $394,773 (23rd lowest of 50 states)
- Avg. annual homeowners insurance premium: $168 (25th lowest of 50 states)
- Est. annual property tax payments: $2,824 (21st lowest of 50 states)
- Effective property tax rate: 0.7% (22nd lowest of 50 states)
Hawaii
- Minimum annual income needed to afford a typical home: $191,046 (3rd highest of 50 states)
- Est. monthly expenses for a typical home: $4,458 (3rd highest of 50 states)
- Median home list price in October 2024: $798,500 (the highest of 50 states)
- Avg. annual homeowners insurance premium: $100 (11th lowest of 50 states)
- Est. annual property tax payments: $2,045 (6th lowest of 50 states)
- Effective property tax rate: 0.3% (the lowest of 50 states)
Idaho
- Minimum annual income needed to afford a typical home: $142,889 (15th highest of 50 states)
- Est. monthly expenses for a typical home: $3,334 (15th highest of 50 states)
- Median home list price in October 2024: $572,988 (10th highest of 50 states)
- Avg. annual homeowners insurance premium: $107 (14th lowest of 50 states)
- Est. annual property tax payments: $2,668 (18th lowest of 50 states)
- Effective property tax rate: 0.5% (7th lowest of 50 states)
Illinois
- Minimum annual income needed to afford a typical home: $102,096 (16th lowest of 50 states)
- Est. monthly expenses for a typical home: $2,382 (16th lowest of 50 states)
- Median home list price in October 2024: $317,450 (14th lowest of 50 states)
- Avg. annual homeowners insurance premium: $201 (18th highest of 50 states)
- Est. annual property tax payments: $6,198 (8th highest of 50 states)
- Effective property tax rate: 2.0% (2nd highest of 50 states)
Maine
- Minimum annual income needed to afford a typical home: $120,968 (21st highest of 50 states)
- Est. monthly expenses for a typical home: $2,823 (21st highest of 50 states)
- Median home list price in October 2024: $450,000 (20th highest of 50 states)
- Avg. annual homeowners insurance premium: $102 (12th lowest of 50 states)
- Est. annual property tax payments: $4,329 (17th highest of 50 states)
- Effective property tax rate: 1.0% (21st highest of 50 states)
Maryland
- Minimum annual income needed to afford a typical home: $115,472 (24th highest of 50 states)
- Est. monthly expenses for a typical home: $2,694 (24th highest of 50 states)
- Median home list price in October 2024: $425,000 (24th highest of 50 states)
- Avg. annual homeowners insurance premium: $130 (20th lowest of 50 states)
- Est. annual property tax payments: $4,028 (18th highest of 50 states)
- Effective property tax rate: 0.9% (22nd highest of 50 states)
Massachusetts
- Minimum annual income needed to afford a typical home: $207,469 (the highest of 50 states)
- Est. monthly expenses for a typical home: $4,841 (the highest of 50 states)
- Median home list price in October 2024: $769,500 (2nd highest of 50 states)
- Avg. annual homeowners insurance premium: $139 (22nd lowest of 50 states)
- Est. annual property tax payments: $8,000 (5th highest of 50 states)
- Effective property tax rate: 1.0% (17th highest of 50 states)
Minnesota
- Minimum annual income needed to afford a typical home: $109,793 (22nd lowest of 50 states)
- Est. monthly expenses for a typical home: $2,562 (22nd lowest of 50 states)
- Median home list price in October 2024: $387,000 (22nd lowest of 50 states)
- Avg. annual homeowners insurance premium: $215 (14th highest of 50 states)
- Est. annual property tax payments: $3,809 (21st highest of 50 states)
- Effective property tax rate: 1.0% (19th highest of 50 states)
Montana
- Minimum annual income needed to afford a typical home: $170,482 (6th highest of 50 states)
- Est. monthly expenses for a typical home: $3,978 (6th highest of 50 states)
- Median home list price in October 2024: $646,975 (5th highest of 50 states)
- Avg. annual homeowners insurance premium: $211 (15th highest of 50 states)
- Est. annual property tax payments: $4,490 (15th highest of 50 states)
- Effective property tax rate: 0.7% (18th lowest of 50 states)
Nebraska
- Minimum annual income needed to afford a typical home: $114,341 (25th lowest of 50 states)
- Est. monthly expenses for a typical home: $2,668 (25th lowest of 50 states)
- Median home list price in October 2024: $342,450 (16th lowest of 50 states)
- Avg. annual homeowners insurance premium: $462 (the highest of 50 states)
- Est. annual property tax payments: $4,922 (12th highest of 50 states)
- Effective property tax rate: 1.4% (8th highest of 50 states)
Nevada
- Minimum annual income needed to afford a typical home: $122,373 (18th highest of 50 states)
- Est. monthly expenses for a typical home: $2,855 (18th highest of 50 states)
- Median home list price in October 2024: $495,000 (16th highest of 50 states)
- Avg. annual homeowners insurance premium: $80 (2nd lowest of 50 states)
- Est. annual property tax payments: $2,155 (10th lowest of 50 states)
- Effective property tax rate: 0.4% (3rd lowest of 50 states)
New Hampshire
- Minimum annual income needed to afford a typical home: $165,009 (8th highest of 50 states)
- Est. monthly expenses for a typical home: $3,850 (8th highest of 50 states)
- Median home list price in October 2024: $571,950 (11th highest of 50 states)
- Avg. annual homeowners insurance premium: $82 (5th lowest of 50 states)
- Est. annual property tax payments: $9,227 (3rd highest of 50 states)
- Effective property tax rate: 1.6% (4th highest of 50 states)
New Jersey
- Minimum annual income needed to afford a typical home: $175,922 (5th highest of 50 states)
- Est. monthly expenses for a typical home: $4,105 (5th highest of 50 states)
- Median home list price in October 2024: $574,500 (9th highest of 50 states)
- Avg. annual homeowners insurance premium: $97 (8th lowest of 50 states)
- Est. annual property tax payments: $11,942 (the highest of 50 states)
- Effective property tax rate: 2.1% (the highest of 50 states)
New Mexico
- Minimum annual income needed to afford a typical home: $106,679 (19th lowest of 50 states)
- Est. monthly expenses for a typical home: $2,489 (19th lowest of 50 states)
- Median home list price in October 2024: $399,000 (24th lowest of 50 states)
- Avg. annual homeowners insurance premium: $173 (24th highest of 50 states)
- Est. annual property tax payments: $2,686 (19th lowest of 50 states)
- Effective property tax rate: 0.7% (16th lowest of 50 states)
New York
- Minimum annual income needed to afford a typical home: $187,954 (4th highest of 50 states)
- Est. monthly expenses for a typical home: $4,386 (4th highest of 50 states)
- Median home list price in October 2024: $649,775 (4th highest of 50 states)
- Avg. annual homeowners insurance premium: $145 (24th lowest of 50 states)
- Est. annual property tax payments: $9,998 (2nd highest of 50 states)
- Effective property tax rate: 1.5% (6th highest of 50 states)
North Carolina
- Minimum annual income needed to afford a typical home: $110,202 (23rd lowest of 50 states)
- Est. monthly expenses for a typical home: $2,571 (23rd lowest of 50 states)
- Median home list price in October 2024: $409,950 (25th lowest of 50 states)
- Avg. annual homeowners insurance premium: $205 (16th highest of 50 states)
- Est. annual property tax payments: $2,599 (16th lowest of 50 states)
- Effective property tax rate: 0.6% (15th lowest of 50 states)
North Dakota
- Minimum annual income needed to afford a typical home: $102,752 (17th lowest of 50 states)
- Est. monthly expenses for a typical home: $2,398 (17th lowest of 50 states)
- Median home list price in October 2024: $356,248 (18th lowest of 50 states)
- Avg. annual homeowners insurance premium: $240 (11th highest of 50 states)
- Est. annual property tax payments: $3,473 (25th lowest of 50 states)
- Effective property tax rate: 1.0% (20th highest of 50 states)
Oregon
- Minimum annual income needed to afford a typical home: $147,335 (13th highest of 50 states)
- Est. monthly expenses for a typical home: $3,438 (13th highest of 50 states)
- Median home list price in October 2024: $569,950 (12th highest of 50 states)
- Avg. annual homeowners insurance premium: $85 (7th lowest of 50 states)
- Est. annual property tax payments: $4,368 (16th highest of 50 states)
- Effective property tax rate: 0.8% (24th highest of 50 states)
Rhode Island
- Minimum annual income needed to afford a typical home: $155,240 (9th highest of 50 states)
- Est. monthly expenses for a typical home: $3,622 (9th highest of 50 states)
- Median home list price in October 2024: $549,950 (13th highest of 50 states)
- Avg. annual homeowners insurance premium: $174 (23rd highest of 50 states)
- Est. annual property tax payments: $6,772 (7th highest of 50 states)
- Effective property tax rate: 1.2% (15th highest of 50 states)
South Dakota
- Minimum annual income needed to afford a typical home: $107,418 (20th lowest of 50 states)
- Est. monthly expenses for a typical home: $2,506 (20th lowest of 50 states)
- Median home list price in October 2024: $372,500 (20th lowest of 50 states)
- Avg. annual homeowners insurance premium: $238 (12th highest of 50 states)
- Est. annual property tax payments: $3,780 (22nd highest of 50 states)
- Effective property tax rate: 1.0% (18th highest of 50 states)
Tennessee
- Minimum annual income needed to afford a typical home: $111,730 (24th lowest of 50 states)
- Est. monthly expenses for a typical home: $2,607 (24th lowest of 50 states)
- Median home list price in October 2024: $427,450 (23rd highest of 50 states)
- Avg. annual homeowners insurance premium: $193 (19th highest of 50 states)
- Est. annual property tax payments: $2,070 (8th lowest of 50 states)
- Effective property tax rate: 0.5% (10th lowest of 50 states)
Texas
- Minimum annual income needed to afford a typical home: $116,611 (22nd highest of 50 states)
- Est. monthly expenses for a typical home: $2,721 (22nd highest of 50 states)
- Median home list price in October 2024: $370,739 (19th lowest of 50 states)
- Avg. annual homeowners insurance premium: $324 (6th highest of 50 states)
- Est. annual property tax payments: $5,433 (9th highest of 50 states)
- Effective property tax rate: 1.5% (7th highest of 50 states)
Utah
- Minimum annual income needed to afford a typical home: $149,036 (12th highest of 50 states)
- Est. monthly expenses for a typical home: $3,477 (12th highest of 50 states)
- Median home list price in October 2024: $599,000 (7th highest of 50 states)
- Avg. annual homeowners insurance premium: $100 (11th lowest of 50 states)
- Est. annual property tax payments: $2,836 (22nd lowest of 50 states)
- Effective property tax rate: 0.5% (8th lowest of 50 states)
Vermont
- Minimum annual income needed to afford a typical home: $142,901 (14th highest of 50 states)
- Est. monthly expenses for a typical home: $3,334 (14th highest of 50 states)
- Median home list price in October 2024: $499,000 (15th highest of 50 states)
- Avg. annual homeowners insurance premium: $67 (the lowest of 50 states)
- Est. annual property tax payments: $7,807 (6th highest of 50 states)
- Effective property tax rate: 1.6% (5th highest of 50 states)
Virginia
- Minimum annual income needed to afford a typical home: $115,810 (23rd highest of 50 states)
- Est. monthly expenses for a typical home: $2,702 (23rd highest of 50 states)
- Median home list price in October 2024: $440,527 (21st highest of 50 states)
- Avg. annual homeowners insurance premium: $127 (19th lowest of 50 states)
- Est. annual property tax payments: $3,181 (24th lowest of 50 states)
- Effective property tax rate: 0.7% (23rd lowest of 50 states)
Washington
- Minimum annual income needed to afford a typical home: $167,404 (7th highest of 50 states)
- Est. monthly expenses for a typical home: $3,906 (7th highest of 50 states)
- Median home list price in October 2024: $644,450 (6th highest of 50 states)
- Avg. annual homeowners insurance premium: $119 (17th lowest of 50 states)
- Est. annual property tax payments: $4,891 (13th highest of 50 states)
- Effective property tax rate: 0.8% (25th lowest of 50 states)
Wisconsin
- Minimum annual income needed to afford a typical home: $108,285 (21st lowest of 50 states)
- Est. monthly expenses for a typical home: $2,527 (21st lowest of 50 states)
- Median home list price in October 2024: $379,450 (21st lowest of 50 states)
- Avg. annual homeowners insurance premium: $100 (11th lowest of 50 states)
- Est. annual property tax payments: $5,242 (10th highest of 50 states)
- Effective property tax rate: 1.4% (10th highest of 50 states)
Wyoming
- Minimum annual income needed to afford a typical home: $121,988 (19th highest of 50 states)
- Est. monthly expenses for a typical home: $2,846 (19th highest of 50 states)
- Median home list price in October 2024: $479,225 (19th highest of 50 states)
- Avg. annual homeowners insurance premium: $113 (16th lowest of 50 states)
- Est. annual property tax payments: $2,644 (17th lowest of 50 states)
- Effective property tax rate: 0.6% (14th lowest of 50 states)
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