U.S. home sales skyrocketed during the COVID-19 pandemic – hitting a 15-year high of 6.1 million in 2021. The spike in demand, coupled with declining inventory, have put upward pressure on housing prices. Renters have not been spared, as housing has become one of the key drivers of surging U.S. inflation.
According to the Economic Policy Institute, a nonprofit think tank, a family of four – two adults and two children – can expect to pay an estimated $15,031 on housing in 2022. This amount varies across the country, however. In some states housing costs are far lower than the national average, while in others, families are paying thousands more.Â
Using data from the EPI’s Family Budget Calculator, 24/7 Wall St. identified the states where families pay the most in housing. States are ranked on 2022 estimates of housing and utility costs for a modest two-bedroom rental.Â
Depending on the state, housing costs for a family of four range from less than $9,000 a year to well over $20,000. Generally, states with higher than average housing costs are coastal, bordered by the Atlantic or Pacific Oceans, while states with lower than average housing costs are usually landlocked or located in the Deep South. This variation in cost is partially a reflection of what residents can afford, as states with higher rental costs also often have higher than average family incomes, and vice-versa. Here is a look at the income needed to be middle class in each state.Â
Home values also tend to be higher in areas with high housing costs, making homeownership prohibitively expensive for larger shares of the population – which may help explain why homeownership rates are often low in the states with the most expensive housing. Here is a look at the mortgage rate in America every year since 1972.Â
Click here to see the states where families pay the most for housing
Click here to read our detailed methodology
Source: Sean Pavone / iStock via Getty Images
50. Arkansas
> Est. annual housing costs: $8,993
> Median family income: $62,067 (3rd lowest)
> Homeownership rate: 65.8% (16th lowest)
> Median home value: $133,600 (3rd lowest)
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Source: Sean Pavone / iStock via Getty Images
49. West Virginia
> Est. annual housing costs: $9,133
> Median family income: $61,707 (2nd lowest)
> Homeownership rate: 73.7% (the highest)
> Median home value: $123,200 (the lowest)
Source: SeanPavonePhoto / iStock via Getty Images
48. Mississippi
> Est. annual housing costs: $9,546
> Median family income: $58,923 (the lowest)
> Homeownership rate: 68.8% (16th highest)
> Median home value: $125,500 (2nd lowest)
Source: DenisTangneyJr / iStock via Getty Images
47. South Dakota
> Est. annual housing costs: $9,670
> Median family income: $77,042 (24th lowest)
> Homeownership rate: 68.0% (19th highest)
> Median home value: $174,600 (16th lowest)
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Source: 6381380 / iStock Editorial via Getty Images
46. Kentucky
> Est. annual housing costs: $9,687
> Median family income: $65,893 (6th lowest)
> Homeownership rate: 67.6% (20th highest)
> Median home value: $147,100 (5th lowest)
Source: Kruck20 / iStock via Getty Images
45. Alabama
> Est. annual housing costs: $9,784
> Median family income: $66,772 (7th lowest)
> Homeownership rate: 69.2% (14th highest)
> Median home value: $149,600 (7th lowest)
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Source: bscottberg / iStock via Getty Images
44. Iowa
> Est. annual housing costs: $9,802
> Median family income: $79,186 (25th highest)
> Homeownership rate: 71.2% (8th highest)
> Median home value: $153,900 (9th lowest)
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Source: DenisTangneyJr / E+ via Getty Images
43. Oklahoma
> Est. annual housing costs: $10,059
> Median family income: $67,511 (8th lowest)
> Homeownership rate: 66.1% (17th lowest)
> Median home value: $142,400 (4th lowest)
Source: DenisTangneyJr / iStock via Getty Images
42. North Dakota
> Est. annual housing costs: $10,236
> Median family income: $86,798 (15th highest)
> Homeownership rate: 62.5% (8th lowest)
> Median home value: $199,900 (25th lowest)
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Source: Jacqueline Nix / iStock Editorial via Getty Images
41. Ohio
> Est. annual housing costs: $10,324
> Median family income: $74,391 (20th lowest)
> Homeownership rate: 66.3% (24th lowest)
> Median home value: $151,400 (8th lowest)
Source: alexeys / iStock via Getty Images
40. Indiana
> Est. annual housing costs: $10,331
> Median family income: $73,265 (16th lowest)
> Homeownership rate: 69.5% (13th highest)
> Median home value: $148,900 (6th lowest)
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Source: DenisTangneyJr / iStock via Getty Images
39. Missouri
> Est. annual housing costs: $10,344
> Median family income: $72,834 (15th lowest)
> Homeownership rate: 67.1% (22nd highest)
> Median home value: $163,600 (12th lowest)
Source: DenisTangneyJr / E+ via Getty Images
38. Wyoming
> Est. annual housing costs: $10,423
> Median family income: $81,290 (20th highest)
> Homeownership rate: 71.0% (9th highest)
> Median home value: $228,000 (24th highest)
Source: Matt Bills / iStock via Getty Images
37. Nebraska
> Est. annual housing costs: $10,551
> Median family income: $80,125 (24th highest)
> Homeownership rate: 66.2% (19th lowest)
> Median home value: $164,000 (13th lowest)
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Source: Sean Pavone / iStock via Getty Images
36. Kansas
> Est. annual housing costs: $10,740
> Median family income: $77,620 (25th lowest)
> Homeownership rate: 66.2% (22nd lowest)
> Median home value: $157,600 (10th lowest)
Source: ivanastar / iStock via Getty Images
35. New Mexico
> Est. annual housing costs: $10,784
> Median family income: $62,611 (4th lowest)
> Homeownership rate: 68.0% (18th highest)
> Median home value: $175,700 (17th lowest)
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Source: knowlesgallery / iStock via Getty Images
34. Idaho
> Est. annual housing costs: $10,791
> Median family income: $70,885 (12th lowest)
> Homeownership rate: 70.8% (10th highest)
> Median home value: $235,600 (21st highest)
Source: Kruck20 / iStock via Getty Images
33. Tennessee
> Est. annual housing costs: $10,906
> Median family income: $68,793 (9th lowest)
> Homeownership rate: 66.5% (25th lowest)
> Median home value: $177,600 (18th lowest)
Source: Jacob Boomsma / iStock via Getty Images
32. Wisconsin
> Est. annual housing costs: $10,970
> Median family income: $80,844 (22nd highest)
> Homeownership rate: 67.1% (21st highest)
> Median home value: $189,200 (22nd lowest)
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Source: Jon Bilous / iStock via Getty Images
31. Montana
> Est. annual housing costs: $10,972
> Median family income: $72,773 (14th lowest)
> Homeownership rate: 68.5% (17th highest)
> Median home value: $244,900 (18th highest)
Source: DenisTangneyJr / iStock via Getty Images
30. Louisiana
> Est. annual housing costs: $11,046
> Median family income: $65,427 (5th lowest)
> Homeownership rate: 66.6% (25th highest)
> Median home value: $168,100 (14th lowest)
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Source: Kruck20 / iStock via Getty Images
29. South Carolina
> Est. annual housing costs: $11,096
> Median family income: $68,813 (10th lowest)
> Homeownership rate: 70.1% (12th highest)
> Median home value: $170,100 (15th lowest)
Source: Kruck20 / iStock via Getty Images
28. North Carolina
> Est. annual housing costs: $11,360
> Median family income: $70,978 (13th lowest)
> Homeownership rate: 65.7% (15th lowest)
> Median home value: $182,100 (19th lowest)
Source: Better Planet Media / iStock via Getty Images
27. Michigan
> Est. annual housing costs: $11,467
> Median family income: $75,470 (21st lowest)
> Homeownership rate: 71.7% (4th highest)
> Median home value: $162,600 (11th lowest)
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26. Georgia
> Est. annual housing costs: $12,152
> Median family income: $74,127 (19th lowest)
> Homeownership rate: 64.0% (12th lowest)
> Median home value: $190,200 (23rd lowest)
Source: DenisTangneyJr / iStock via Getty Images
25. Pennsylvania
> Est. annual housing costs: $12,412
> Median family income: $80,996 (21st highest)
> Homeownership rate: 69.0% (15th highest)
> Median home value: $187,500 (21st lowest)
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Source: DenisTangneyJr / iStock via Getty Images
24. Utah
> Est. annual housing costs: $12,508
> Median family income: $84,590 (18th highest)
> Homeownership rate: 70.5% (11th highest)
> Median home value: $305,400 (10th highest)
Source: SeanPavonePhoto / iStock via Getty Images
23. Maine
> Est. annual housing costs: $13,104
> Median family income: $76,192 (23rd lowest)
> Homeownership rate: 72.9% (2nd highest)
> Median home value: $198,000 (24th lowest)
Source: BOB WESTON / iStock via Getty Images
22. Texas
> Est. annual housing costs: $13,475
> Median family income: $76,073 (22nd lowest)
> Homeownership rate: 62.3% (6th lowest)
> Median home value: $187,200 (20th lowest)
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Source: Jacob Boomsma / iStock via Getty Images
21. Minnesota
> Est. annual housing costs: $13,486
> Median family income: $92,692 (9th highest)
> Homeownership rate: 71.9% (3rd highest)
> Median home value: $235,700 (20th highest)
Source: f11photo / iStock via Getty Images
20. Nevada
> Est. annual housing costs: $13,543
> Median family income: $74,077 (18th lowest)
> Homeownership rate: 57.1% (3rd lowest)
> Median home value: $290,200 (11th highest)
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Source: Jorge Villalba / E+ via Getty Images
19. Illinois
> Est. annual housing costs: $13,692
> Median family income: $86,251 (16th highest)
> Homeownership rate: 66.3% (23rd lowest)
> Median home value: $202,100 (25th highest)
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Source: James Griffiths Photography / iStock via Getty Images
18. Arizona
> Est. annual housing costs: $13,875
> Median family income: $73,456 (17th lowest)
> Homeownership rate: 65.3% (14th lowest)
> Median home value: $242,000 (19th highest)
Source: DenisTangneyJr / iStock via Getty Images
17. Delaware
> Est. annual housing costs: $14,037
> Median family income: $84,825 (17th highest)
> Homeownership rate: 71.4% (5th highest)
> Median home value: $258,300 (17th highest)
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Source: vermontalm / iStock via Getty Images
16. Vermont
> Est. annual housing costs: $14,321
> Median family income: $83,023 (19th highest)
> Homeownership rate: 71.3% (6th highest)
> Median home value: $230,900 (23rd highest)
Source: DenisTangneyJr / E+ via Getty Images
15. Rhode Island
> Est. annual housing costs: $14,502
> Median family income: $89,330 (13th highest)
> Homeownership rate: 61.6% (5th lowest)
> Median home value: $276,600 (14th highest)
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Source: miracky / iStock via Getty Images
14. Alaska
> Est. annual housing costs: $14,566
> Median family income: $92,648 (10th highest)
> Homeownership rate: 64.8% (13th lowest)
> Median home value: $275,600 (15th highest)
Source: SeanPavonePhoto / iStock via Getty Images
13. Florida
> Est. annual housing costs: $15,232
> Median family income: $69,670 (11th lowest)
> Homeownership rate: 66.2% (20th lowest)
> Median home value: $232,000 (22nd highest)
Source: DenisTangneyJr / E+ via Getty Images
12. New Hampshire
> Est. annual housing costs: $15,267
> Median family income: $97,001 (6th highest)
> Homeownership rate: 71.2% (7th highest)
> Median home value: $272,300 (16th highest)
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Source: Sundry Photography / iStock via Getty Images
11. Oregon
> Est. annual housing costs: $15,607
> Median family income: $80,630 (23rd highest)
> Homeownership rate: 62.8% (9th lowest)
> Median home value: $336,700 (7th highest)
Source: Jon Bilous / iStock via Getty Images
10. Virginia
> Est. annual housing costs: $15,870
> Median family income: $93,284 (7th highest)
> Homeownership rate: 66.7% (24th highest)
> Median home value: $282,800 (12th highest)
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Source: SeanPavonePhoto / iStock via Getty Images
9. Connecticut
> Est. annual housing costs: $17,127
> Median family income: $102,061 (4th highest)
> Homeownership rate: 66.1% (18th lowest)
> Median home value: $279,700 (13th highest)
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Source: Kruck20 / iStock via Getty Images
8. Colorado
> Est. annual housing costs: $17,157
> Median family income: $92,752 (8th highest)
> Homeownership rate: 66.2% (21st lowest)
> Median home value: $369,900 (4th highest)
Source: gmc3101 / iStock via Getty Images
7. Washington
> Est. annual housing costs: $17,824
> Median family income: $92,422 (11th highest)
> Homeownership rate: 63.3% (10th lowest)
> Median home value: $366,800 (5th highest)
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Source: DenisTangneyJr / iStock via Getty Images
6. Maryland
> Est. annual housing costs: $17,840
> Median family income: $105,790 (2nd highest)
> Homeownership rate: 67.1% (23rd highest)
> Median home value: $325,400 (8th highest)
Source: Johnrob / iStock via Getty Images
5. New Jersey
> Est. annual housing costs: $19,811
> Median family income: $104,804 (3rd highest)
> Homeownership rate: 64.0% (11th lowest)
> Median home value: $343,500 (6th highest)
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Source: GCShutter / E+ via Getty Images
4. New York
> Est. annual housing costs: $20,092
> Median family income: $87,270 (14th highest)
> Homeownership rate: 54.1% (the lowest)
> Median home value: $325,000 (9th highest)
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Source: SeanPavonePhoto / iStock via Getty Images
3. Massachusetts
> Est. annual housing costs: $22,294
> Median family income: $106,526 (the highest)
> Homeownership rate: 62.5% (7th lowest)
> Median home value: $398,800 (3rd highest)
Source: Art Wager / iStock via Getty Images
2. Hawaii
> Est. annual housing costs: $23,335
> Median family income: $97,813 (5th highest)
> Homeownership rate: 60.3% (4th lowest)
> Median home value: $636,400 (the highest)
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Source: DutcherAerials / E+ via Getty Images
1. California
> Est. annual housing costs: $23,734
> Median family income: $89,798 (12th highest)
> Homeownership rate: 55.3% (2nd lowest)
> Median home value: $538,500 (2nd highest)
Methodology
To determine the states with the highest housing costs for a family of four, 24/7 Wall St. reviewed data from the Economic Policy Institute’s 2022 Family Budget Calculator.
In the Family Budget Calculator, the EPI estimates the housing costs for families to maintain a modest yet adequate standard of living. The budgets are created for 10 family types for U.S. counties and metro areas. A family of four is defined by the EPI as a married couple living with their two children, and the two children are assumed to be a 4-year-old and an 8-year-old.
State-level housing cost estimates are aggregated from the county level using five-year estimates of total households from the U.S. Census Bureau’s 2020 American Community Survey.
Additional information on median family income, homeownership rate, and median home value are from the U.S. Census Bureau’s 2020 American Community Survey. Because the Census Bureau has yet to release one-year estimates for 2020 due to data collection issues caused by the COVID-19 pandemic, all ACS data are five-year estimates.
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