5 States Where Residents Are Rich — But Still Can’t Afford Homes
Owning a home is a major milestone that could signal to some that they’ve made it financially. However, having a relatively high income doesn’t always mean that you can afford to buy a home where you live.
Learn More: 5 Worst California Cities To Buy Property Over the Next 5 Years, per Real Estate Agents
Try This: Become a Real Estate Investor for Just $1K Using This Bezos-Backed Startup
A recent CNN analysis that compared average personal income data from the Federal Reserve and homeownership rates from U.S. Census data for every state found that there is sometimes an inverse correlation between high incomes and homeownership — meaning some of the states with the lowest homeownership rates have some of the highest incomes in the country.
There are a number of factors that could lead to this discrepancy, including a high concentration of cities. Residents of cities may earn more, but there is also typically more competition for homes, which can drive prices up, making them unaffordable for even higher-income earners.
Here’s a look at the states that have the lowest homeownership rates, but relatively high income levels.
New York
Homeownership rank: 50
Homeownership rate: 53%
Average personal income: $79,581
Income rank: 6
Read Next: I’m an Economist: Here’s My Prediction for the Housing Market If Trump Wins the Election
Trending: Mortgage Rates Are Dropping: 20 Housing Markets With the Most Affordable Home Prices
Wealthy people know the best money secrets. Learn how to copy them.
California
Homeownership rank: 49
Homeownership rate: 56%
Average personal income: $80,423
Income rank: 4
Check Out: 20 Best Cities Where You Can Buy a House for Under $100K
Nevada
Homeownership rank: 48
Homeownership rate: 61%
Average personal income: $65,168
Income rank: 25
Hawaii
Homeownership rank: 47
Homeownership rate: 62%
Average personal income: $65,151
Income rank: 26
Massachusetts
Homeownership rank: 46
Homeownership rate: 62%
Average personal income: $87,812
Income rank: 1
Data is sourced from CNN and is accurate as of July 9, 2024.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 5 States Where Residents Are Rich — But Still Can’t Afford Homes