Homebuyers Now Need Six-Figure Salaries in Over Half of U.S. States

In 22 states and Washington, D.C., buyers need a six-figure household income to afford a median-priced home, up from just 6 states and D.C. in 2020.

Home prices have risen faster than wages, reducing affordability. Low supply, high demand, and reluctant sellers are factors.

The analysis assumed a 20% down payment, 30-year fixed mortgage at 52-week average rate, with monthly payments below 28% of annual income.

The states with the highest income needed are California, Hawaii, D.C., Massachusetts, and Washington. The lowest are Mississippi, Ohio, Arkansas, Indiana, and Kentucky.

Compared to 2020, income needs rose the most in Montana, Utah, Tennessee, South Carolina and Arizona, but rose the least in North Dakota, Illinois, and Kansas.