Discover The Most Affordable Housing Market In Every U.S. State

"Data from the Bureau of Labor Statistics shows that wages for a typical, full-time worker have climbed by just under 27% since the beginning of 2020. Over the same period, home prices rose more than twice as fast, increasing by over 55% according to the Case-Shiller index. In a congressional hearing earlier this year, the chairman of the National Association of Home Builders testified that nearly 77% of American households cannot afford a new, median priced home."

"The mismatch between supply and demand in the housing market is also being exacerbated by historically high mortgage rates. According to the Federal Home Loan Mortgage Corporation, or Freddie Mac, the average interest on a 30-year fixed rate mortgage has been above 6% since September 2022 - levels not seen since 2008. Today's borrowing costs are more than double what they were as recently as 2021, and many homeowners locked into lower rates are now hesitant to sell."

"Due to these underlying factors, the median list price of a home in the United States is now $425,000, which is 5.2 times higher than the national median household income of $81,604. For context, the median list price in the U.S. was only 3.5 times higher than the median household income as recently as a decade ago. Notably, both real estate prices and income levels vary considerably across the country, and in most states, there are housing markets that remain relatively affordable."

Wages for a typical full-time worker rose just under 27% since early 2020, while the Case-Shiller index shows home prices increased by over 55% in the same period. Nearly 77% of American households cannot afford a new, median-priced home. A housing supply shortage of at least 1.5 million units, combined with rising construction costs, worsens affordability. Average 30-year fixed mortgage rates have exceeded 6% since September 2022, more than double 2021 levels, discouraging owners locked into lower rates from selling. The national median list price is $425,000, 5.2 times the median household income of $81,604. Prices and incomes vary substantially across states, and data from the U.S. Census Bureau and Realtor.com cover more than 860 counties to evaluate affordability.

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