Home Affordability Crisis Deepens: Buyers Now Need Six-Figure Salaries in 22 States

Buying an affordable home has become much harder in recent years, with buyers now needing 6-figure incomes to afford a typical home in 22 states and Washington, DC.

Home prices have risen rapidly due to low housing supply and high buyer demand. This makes existing homeowners reluctant to sell.

The analysis assumed a 20% down payment, 30-year fixed mortgage at average interest rates, and total mortgage payments less than 28% of annual gross income.

The West Coast and Northeast require the highest incomes to afford typical homes, while the South and Midwest remain most affordable.

Compared to 2020, the income needed to buy a typical home has risen dramatically in Western/Sun Belt states like Montana, Utah, and Arizona.