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Home Buying in 2024: Opportunities Await Even with Lower Incomes
As the cost of living increases and wages struggle to keep pace with soaring home prices, potential buyers may feel their dreams of homeownership slipping away. Yet there’s a silver lining: in 42 states, individuals earning under $100,000 annually can still purchase a home.
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But how did GOBankingRates come to this conclusion? By analyzing the average home values and monthly mortgage costs for 2024 across states, they used a 30-year fixed-rate mortgage model, estimating a 20% down payment with a 6.82% interest rate. By ensuring housing costs remain within 30% of gross income, they determined the minimum salary needed for comfortable homeownership in each state.
The following list ranks states based on the minimum salary required to afford a home from highest to lowest.
50. Hawaii
- 2024 average home value: $967,270
- 20% down payment: $193,454
- Loan amount: $773,816.01
- Monthly mortgage: $5,055.01
- Annual mortgage: $60,660.18
- Minimum salary needed for homeownership: $202,200.59
Explore More: 5 Home Types Expected to Lose Value
Next Steps: What Mortgage Rates Might Look Like in 2025
49. 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 for homeownership: $164,168.07
Check Out: 5 Cities Where Home Prices Will Be Great Bargains in Two Years
48. 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 for homeownership: $128,762.39
47. 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 for homeownership: $123,176.22
46. 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 for homeownership: $115,170.84
Read Next: 5 Florida Cities to Avoid for Property Investment Over the Next 5 Years
45. 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 for homeownership: $108,571.61
44. 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 for homeownership: $108,295.12
43. Oregon
- 2024 average home value: $494,672
- 20% down payment: $98,934.35
- Loan amount: $395,737.41
- Monthly mortgage: $2,619.20
- Annual mortgage: $31,430.40
- Minimum salary needed for homeownership: $104,100.82
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Home Affordability Rankings: Average Values Across States in 2024
42. 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
41. 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
40. Rhode Island
- 2024 average home value: $448,030
- 20% down payment: $89,605.95
- Loan amount: $358,423.82
- Monthly mortgage: $2,341.43
- Annual mortgage: $28,097.19
- Minimum salary needed to comfortably afford a home: $93,657.29
39. Idaho
38. Nevada
- 2024 average home value: $441,049
- 20% down payment: $88,209.81
- Loan amount: $352,839.23
- Monthly mortgage: $2,304.95
- Annual mortgage: $27,659.40
- Minimum salary needed to comfortably afford a home: $92,198.02
37. Arizona
- 2024 average home value: $436,020
- 20% down payment: $87,204.04
- Loan amount: $348,816.14
- Monthly mortgage: $2,278.67
- Annual mortgage: $27,344.03
- Minimum salary needed to comfortably afford a home: $91,146.77
36. New York
- 2024 average home value: $427,542
- 20% down payment: $85,508.46
- Loan amount: $342,033.83
- Monthly mortgage: $2,234.36
- Annual mortgage: $26,812.36
- Minimum salary needed to comfortably afford a home: $89,374.53
35. Maryland
- 2024 average home value: $417,676
- 20% down payment: $83,535.27
- Loan amount: $334,141.09
- Monthly mortgage: $2,182.80
- Annual mortgage: $26,193.64
- Minimum salary needed to comfortably afford a home: $87,312.13
34. Florida
- 2024 average home value: $409,179
- 20% down payment: $81,835.74
- Loan amount: $327,342.96
- Monthly mortgage: $2,138.39
- Annual mortgage: $25,660.73
- Minimum salary needed to comfortably afford a home: $85,535.76
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33. Connecticut
- 2024 average home value: $408,726
- 20% down payment: $81,745.12
- Loan amount: $326,980.48
- Monthly mortgage:
“““htmlUnderstanding the Home Affordability Landscape: A State-by-State Breakdown
The journey towards homeownership varies greatly across the United States. Here’s a look at several states and the financial requirements for living comfortably in these areas.
32. Virginia
- 2024 average home value: $382,770
- 20% down payment: $76,553.94
- Loan amount: $306,215.77
- Monthly mortgage: $2,000.38
- Annual mortgage: $24,004.55
- Minimum salary needed to comfortably afford a home: $80,015.16
31. Maine
- 2024 average home value: $378,605
- 20% down payment: $75,721.10
- Loan amount: $302,884.39
- Monthly mortgage: $1,978.62
- Annual mortgage: $23,743.40
- Minimum salary needed to comfortably afford a home: $79,144.66
30. Vermont
- 2024 average home value: $376,350
- 20% down payment: $75,269.90
- Loan amount: $301,079.61
- Monthly mortgage: $1,966.83
- Annual mortgage: $23,601.92
- Minimum salary needed to comfortably afford a home: $78,673.06
29. Delaware
- 2024 average home value: $371,809
- 20% down payment: $74,361.77
- Loan amount: $297,447.07
- Monthly mortgage: $1,943.10
- Annual mortgage: $23,317.16
- Minimum salary needed to comfortably afford a home: $77,723.87
28. Alaska
- 2024 average home value: $362,178
- 20% down payment: $72,435.50
- Loan amount: $289,742.01
- Monthly mortgage: $1,892.76
- Annual mortgage: $22,713.15
- Minimum salary needed to comfortably afford a home: $75,710.51
27. Wyoming
- 2024 average home value: $333,617
- 20% down payment: $66,723.43
- Loan amount: $266,893.71
- Monthly mortgage: $1,743.50
- Annual mortgage: $20,922.05
- Minimum salary needed to comfortably afford a home: $69,740.18
26. Minnesota
- 2024 average home value: $328,582
- 20% down payment: $65,716.41
- Loan amount: $262,865.66
- Monthly mortgage: $1,717.19
- Annual mortgage: $20,606.29
- Minimum salary needed to comfortably afford a home: $68,687.63
25. North Carolina
- 2024 average home value: $323,913
- 20% down payment: $64,782.67
- Loan amount: $259,130.69
- Monthly mortgage: $1,692.79
- Annual mortgage: $20,313.50
- Minimum salary needed to comfortably afford a home: $67,711.68
24. Georgia
- 2024 average home value: $323,033
- 20% down payment: $64,606.64
- Loan amount: $258,426.54
- Monthly mortgage: $1,688.19
- Annual mortgage: $20,258.30
- Minimum salary needed to comfortably afford a home: $67,527.68
23. Tennessee
- 2024 average home value: $310,011
- 20% down payment: $62,002.24
- Loan amount: [Loan amount data incomplete]
“`Housing Affordability in America: Where Home Values Stand in 2024
The landscape of home affordability in 2024 reveals significant variations across the United States. Here’s a closer look at the average home values, required down payments, and salaries needed to maintain comfortable living in several states.
22. Texas
- 2024 average home value: $299,337
- 20% down payment: $59,867.32
- Loan amount: $239,469.29
- Monthly mortgage: $1,564.35
- Annual mortgage: $18,772.23
- Minimum salary needed to comfortably afford a home: $62,574.09
21. New Mexico
- 2024 average home value: $293,497
- 20% down payment: $58,699.33
- Loan amount: $234,797.31
- Monthly mortgage: $1,533.83
- Annual mortgage: $18,405.99
- Minimum salary needed to comfortably afford a home: $61,353.28
20. South Dakota
- 2024 average home value: $310,011
- 20% down payment: $62,002.24
- Loan amount: $248,008.95
- Monthly mortgage: $1,620.14
- Annual mortgage: $19,441.66
- Minimum salary needed to comfortably afford a home: $64,805.53
19. South Carolina
- 2024 average home value: $288,972
- 20% down payment: $57,794.31
- Loan amount: $231,177.22
- Monthly mortgage: $1,510.18
- Annual mortgage: $18,122.20
- Minimum salary needed to comfortably afford a home: $60,407.34
18. Wisconsin
- 2024 average home value: $288,799
- 20% down payment: $57,759.78
- Loan amount: $231,039.10
- Monthly mortgage: $1,509.28
- Annual mortgage: $18,111.38
- Minimum salary needed to comfortably afford a home: $60,371.25
17. Pennsylvania
- 2024 average home value: $256,401
- 20% down payment: $51,280.28
- Loan amount: $205,121.11
- Monthly mortgage: $1,339.97
- Annual mortgage: $16,079.64
- Minimum salary needed to comfortably afford a home: $53,598.80
16. Illinois
- 2024 average home value: $254,709
- 20% down payment: $50,941.71
- Loan amount: $203,766.85
- Monthly mortgage: $1,331.12
- Annual mortgage: $15,973.48
- Minimum salary needed to comfortably afford a home: $53,244.93
15. North Dakota
- 2024 average home value: $252,382
- 20% down payment: $50,476.30
- Loan amount: $201,905.21
- Monthly mortgage: $1,318.96
- Annual mortgage: $15,827.54
- Minimum salary needed to comfortably afford a home: $52,758.47
14. Nebraska
- 2024 average home value: $251,535
- 20% down payment: $50,306.90
- Loan amount: $201,227.60
- Monthly mortgage: $1,314.54
- Annual mortgage: $15,774.42
- Minimum salary needed to comfortably afford a home: $52,581.41
Affordable Housing: States Where Buying a Home is Within Reach
Smart Selling Strategies: Building Savings through Downsizing
Missouri
- 2024 average home value: $238,808
- 20% down payment: $47,761.55
- Loan amount: $191,046.19
- Monthly mortgage: $1,248.02
- Annual mortgage: $14,976.29
- Minimum salary needed to comfortably afford a home: $49,920.98
Indiana
- 2024 average home value: $231,278
- 20% down payment: $46,255.59
- Loan amount: $185,022.36
- Monthly mortgage: $1,208.67
- Annual mortgage: $14,504.08
- Minimum salary needed to comfortably afford a home: $48,346.93
Michigan
- 2024 average home value: $230,125
- 20% down payment: $46,025.03
- Loan amount: $184,100.13
- Monthly mortgage: $1,202.65
- Annual mortgage: $14,431.79
- Minimum salary needed to comfortably afford a home: $48,105.95
Ohio
- 2024 average home value: $218,535
- 20% down payment: $43,707.07
- Loan amount: $174,828.27
- Monthly mortgage: $1,142.08
- Annual mortgage: $13,704.95
- Minimum salary needed to comfortably afford a home: $45,683.18
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Alabama
- 2024 average home value: $218,004
- 20% down payment: $43,600.75
- Loan amount: $174,402.99
- Monthly mortgage: $1,139.30
- Annual mortgage: $13,671.62
- Minimum salary needed to comfortably afford a home: $45,572.06
Kansas
- 2024 average home value: $217,817
- 20% down payment: $43,563.35
- Loan amount: $174,253.38
- Monthly mortgage: $1,138.32
- Annual mortgage: $13,659.89
- Minimum salary needed to comfortably afford a home: $45,532.96
Iowa
- 2024 average home value: $212,367
- 20% down payment: $42,473.40
- Loan amount: $169,893.59
- Monthly mortgage: $1,109.84
- Annual mortgage: $13,318.12
- Minimum salary needed to comfortably afford a home: $44,393.74
Oklahoma
- 2024 average home value: $200,153
- 20% down payment: $40,030.57
- Loan amount: $160,122.28
- Monthly mortgage: $1,046.01
- Annual mortgage: $12,552.14
- Minimum salary needed to comfortably afford a home: $41,840.46
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Arkansas
- 2024 average home value: $198,364
- 20% down payment: $39,672.80
- Loan amount: $158,691.21
- Monthly mortgage: $1,036.66
- Annual mortgage: $12,439.96
- Minimum salary needed to comfortably afford a home: $41,466.52
What You Need to Earn to Afford a Home in 2024: A State-by-State Overview
4. Kentucky
- 2024 average home value: $196,412
- 20% down payment: $39,282.42
- Loan amount: $157,129.67
- Monthly mortgage: $1,026.46
- Annual mortgage: $12,317.55
- Minimum salary needed to comfortably afford a home: $41,058.48
3. Louisiana
- 2024 average home value: $195,240
- 20% down payment: $39,047.98
- Loan amount: $156,191.93
- Monthly mortgage: $1,020.34
- Annual mortgage: $12,244.03
- Minimum salary needed to comfortably afford a home: $40,813.45
2. Mississippi
- 2024 average home value: $170,653
- 20% down payment: $34,130.66
- Loan amount: $136,522.65
- Monthly mortgage: $891.85
- Annual mortgage: $10,702.14
- Minimum salary needed to comfortably afford a home: $35,673.80
Read More: 5 Unnecessary Bills You Should Stop Paying in 2024
1. West Virginia
- 2024 average home value: $155,080
- 20% down payment: $31,016.07
- Loan amount: $124,064.28
- Monthly mortgage: $810.46
- Annual mortgage: $9,725.52
- Minimum salary needed to comfortably afford a home: $32,418.39
Methodology: GOBankingRates compiled the average 2024 home value for each state. Using a 30-year fixed-rate mortgage with a 20% down payment and a rate of 6.82% from Freddie Mac on April 4, 2024, they calculated the monthly mortgage. All figures exclude P&I, HOA fees, or property tax. The minimum salary needed to afford a home was established by assuming housing costs should not exceed 30% of gross income. All data is current as of June 13, 2024.
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This article originally appeared on GOBankingRates.com: The Minimum Salary You Need To Buy a Home in All 50 States
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