Overview
Home affordability varies dramatically by state, driven primarily by median home prices and local property tax rates. The income required to qualify for the median-priced home ranges from under $40,000 in some Midwestern states to over $180,000 in California and Hawaii. Knowing where you stand nationally helps frame your buying power.
Income required to buy median-priced home by state
| State | Median Home Price (2025) | Income Required to Qualify | Affordability |
|---|---|---|---|
| California | $750,000-$1,000,000+ | $115,000-$155,000+ | Very unaffordable |
| New York | $450,000-$600,000 | $70,000-$95,000 | Unaffordable for many |
| Florida | $400,000-$450,000 | $60,000-$70,000 | Difficult for median earner |
| Texas | $320,000-$380,000 | $48,000-$57,000 | Moderate |
| Georgia | $300,000-$350,000 | $45,000-$53,000 | Accessible |
| Ohio | $230,000-$270,000 | $34,000-$41,000 | Affordable |
| Iowa | $180,000-$220,000 | $27,000-$33,000 | Very affordable |
| Mississippi | $150,000-$180,000 | $22,000-$27,000 | Most affordable |
The 2025 US median household income is approximately $75,000-$80,000. In many coastal states, this income is insufficient to qualify for the median-priced home. In most Midwestern and Southern states, the median income comfortably qualifies for the median home. This gap explains why interstate migration from coastal to interior markets has accelerated.
Key Points
- State-level affordability is heavily influenced by local job market, historical pricing, and regulatory environment
- High property tax states (NJ, IL) are even less affordable than prices alone suggest
- Low property tax states (Hawaii, Alabama) partially offset high or low prices
- Research both statewide median and your specific target city’s median -- wide variation within states
- Remote work has expanded feasibility of living in more affordable states while earning coastal salaries
Calculate Your Home Affordability
Use the home affordability calculator to see your maximum home price based on your income, debts, down payment, and current mortgage rates.
Calculate How Much Home You Can Afford
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