The 10 States Where You Need the Most Amount of Income to Buy a Home in 2024
Owning a home used to be a rite of passage for the middle class. The years immediately following the end of WWII were particularly booming for homebuyers. Thanks to new construction, government insured loans that had relatively low down payment requirements, millions of veterans returning to civilian life were able to purchase homes.
But those days are long gone. Today, mortgage interest rates are sky high, inventory isn’t keeping up with demand and a steep 20% down payment is the norm. That’s quite a pretty penny when considering that the median home price, U.S. Census Bureau and U.S. Department of Housing and Urban Development, the median sales price of houses sold in the U.S was $420,800 as of May 23, 2024.
Check Out: In Less Than a Year, You’ll Regret Not Having Bought Property in These 20 Housing Markets
Try This: Become a Real Estate Investor for Just $1K Using This Bezos-Backed Startup
Home prices vary widely based on location. Some states are infamously more expensive than others. To work out whether you can afford a home in any state this year, it’s important to know how much income is needed.
In a recent study, GOBankingRates found each state’s average 2024 home value and average monthly mortgage assuming buyers would choose a 30-year fixed-rate mortgage and make a 20% down payment with a 6.82% interest rate. From there, assuming housing costs could not exceed 30% of gross income, GOBankingRates found the minimum salary needed to comfortably afford a home in each state.
These are the 10 states where the most amount of income is required to buy a home in 2024.
1. Montana
2024 average home value: $449,576
20% down payment: $89,915.15
Loan amount: $359,660.62
Monthly mortgage: $2,349.51
Annual mortgage: $28,194.14
Minimum salary needed to comfortably afford a home: $93,980.47
Expert Advice: I’m an Economist: Here’s My Prediction for the Housing Market If Trump Wins the Election
For You: 50 Safest and Most Affordable US Cities To Live In
Wealthy people know the best money secrets. Learn how to copy them.
2. New Hampshire
2024 average home value: $474,549
20% down payment: $94,909.87
Loan amount: $379,639.47
Monthly mortgage: $2,480.03
Annual mortgage: $29,760.30
Minimum salary needed to comfortably afford a home: $99,201.00
Trending Now: 5 Worst California Cities To Buy Property Over the Next 5 Years, per Real Estate Agents
3. Oregon
2024 average home value: $494,672
20% down payment: $98,934.35
Loan amount: $395,737.41
Monthly mortgage: $2,585.19
Annual mortgage: $31,022.23
Minimum salary needed to comfortably afford a home: $103,407.45
4. New Jersey
2024 average home value: $518,053
20% down payment: $103,610.60
Loan amount: $414,442.38
Monthly mortgage: $2,707.38
Annual mortgage: $32,488.53
Minimum salary needed to comfortably afford a home: $108,295.12
5. Utah
2024 average home value: $519,376
20% down payment: $103,875.13
Loan amount: $415,500.51
Monthly mortgage: $2,714.29
Annual mortgage: $32,571.48
Minimum salary needed to comfortably afford a home: $108,571.61
6. Colorado
2024 average home value: $550,945
20% down payment: $110,188.90
Loan amount: $440,755.61
Monthly mortgage: $2,879.27
Annual mortgage: $34,551.25
Minimum salary needed to comfortably afford a home: $115,170.84
Be Aware: Why Many Regret Moving to Texas Post-Pandemic
7. Washington
2024 average home value: $589,240
20% down payment: $117,847.99
Loan amount: $471,391.97
Monthly mortgage: $3,079.41
Annual mortgage: $36,952.87
Minimum salary needed to comfortably afford a home: $123,176.22
8. Massachusetts
2024 average home value: $615,963
20% down payment: $123,192.52
Loan amount: $492,770.08
Monthly mortgage: $3,219.06
Annual mortgage: $38,628.72
Minimum salary needed to comfortably afford a home: $128,762.39
9. California
2024 average home value: $785,333
20% down payment: $157,066.65
Loan amount: $628,266.60
Monthly mortgage: $4,104.20
Annual mortgage: $49,250.42
Minimum salary needed to comfortably afford a home: $164,168.07
10. Hawaii
2024 average home value: $967,270
20% down payment: $193,454.00
Loan amount: $773,816.01
Monthly mortgage: $5,055.01
Annual mortgage: $60,660.18
Minimum salary needed to comfortably afford a home: $202,200.59
More From GOBankingRates
This article originally appeared on GOBankingRates.com: The 10 States Where You Need the Most Amount of Income to Buy a Home in 2024