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How Much a Family of 4 in Every State Needs To Earn To Afford a Home

Realtor April 8, 2025

Seller

How Much a Family of 4 in Every State Needs To Earn To Afford a Home

Amid growing economic uncertainty, the American dream of homeownership might seem nearly impossible to achieve—particularly for families who are seeking to buy a property in one of the nation's least affordable states.

Now, a state-by-state affordability analysis carried out by Realtor.com® economists is revealing the true cost of homeownership for the average family of four, detailing exactly how high their annual income needs to be in order to afford a property that is spacious enough to accommodate two adults and two kids.

The data reveals that, in nearly half of the states across the U.S., the typical four-person family does not earn enough to keep up with monthly mortgage payments on a median-priced three-bedroom home.

Hawaii tops the list of the priciest states for a family with two parents and two children that wants to buy a home, with the median price for a three-bedroom home in the state ($796,946) costing almost six times the median income for a family of four ($133,656).

The minimum recommended income to purchase a home with that eye-popping price tag is over $229,000—about 41% higher than the state’s median four-person household income.

But Hawaii is not alone in its lack of affordability. Far from it.

California is not far behind the Aloha State when it comes to affordability, or lack thereof. There, the minimum recommended income to buy a median-priced three-bedroom home is $209,000.

The trouble is, the median income in the Golden State for a four-person household is $128,533, or 38.7% lower than the recommended income. 

These figures factor in a rate of 6.65% on a 30-year fixed mortgage, property taxes, and insurance, and assume a 10% down payment. It's important to note that homeowners who spend more than 30% of their gross income on housing are typically considered cost-burdened.

"Hawaii and California are among the nation's most expensive states. Even though the typical four-person family income in these states is relatively high, it pales in comparison to home prices," says Realtor.com senior economic research analyst Hannah Jones.

 
From Big Sky Country to the Empire State

According to Realtor.com data, Montana is the third least affordable state for a typical family of four wishing to buy a home without ending up in the red.

The median household income in the Big Sky state is $111,516, which is more than 36% below the recommend income of $176,513 needed to afford a median home priced at $613,375.

Neighboring Idaho follows closely behind, with the affordability gap between the minimum recommended income to purchase a median-priced home at $566,950 and the median four-person household income reaching a sizeable 34.8%. 

Perhaps surprisingly, the Western Gem State is actually less affordable than the notoriously expensive Empire State when it comes to a family's ability to buy a home.

In New York, the median three-bedroom home has a median price of $659,974, calling for a minimum income of $189,923, which is about 30% higher than the actual median household income of $131,389.

For comparison, nationally, the typical four-person household brings in about 4% more in annual income, at $123,617, than the recommended amount to afford a median-priced three-bedroom home of $412,000.

Overall, in 35 of the 50 states and the District of Columbia, a family of four needs to pull in six figures to buy a home. 

 
The Midwest leads in homebuying affordability

For families hoping to purchase a home without breaking the bank, there are still plenty of good opportunities out there, if they know where to look.

As far as regions go, the Midwest dominates in the affordability department.

Illinois, Michigan, and Ohio boast median four-person family incomes that sit between 49.8% and 51.9% higher than the minimum recommended income to buy a property.

For example, in Ohio, a typical family of four has an annual income of $113,453, which is more than double the recommended income of $74,000 needed to afford a median-priced $259,450 home, making the state the nation's most affordable in this specific category.

In Michigan, Illinois, Iowa, and Pennsylvania, four-member families earn between 49.9% and 47.4% more than the income that is recommended to afford a median-price three-bedroom home ranging from $265,350 to $296,750.

"Affordable housing in these states means that families can spend a bit more on other necessities or can save more, taking some pressure off the all-too-familiar budget dance," says Jones.

 
10 states where families need the highest incomes to buy a home
 
1. Hawaii

Median home price: $796,947
Median household income recommended for buying a home: $229,341

 
2. California

Median home price: $728,500
Median household income recommended for buying a home: $209,643

 
3. Montana

Median home price: $111,516
Median household income recommended for buying a home: $176,513

 
4. Idaho

Median home price: $566,950
Median household income recommended for buying a home: $163,153

 
5. New York

Median home price: $659,974
Median household income recommended for buying a home: $189,923

 
6. Utah

Median home price: $586,200
Median household income recommended for buying a home: $168,693

 
7. Nevada

Median home price: $485,598
Median household income recommended for buying a home: $139,742

 
8. New Mexico

Median home price: $389,700
Median household income recommended for buying a home: $112,146

 
9. Massachusetts

Median home price: $749,950
Median household income recommended for buying a home: $215,816

 
10. Oregon

Median home price: $550,000
Median household income recommended for buying a home: $158,276

 
10 states where families with the lowest incomes can buy a home
 
1. Ohio

Median home price: $259,450
Median household income recommended for buying a home: $74,663

 
2. Michigan

Median home price: $265,350
Median household income recommended for buying a home: $76,361

 
3. Illinois

Median home price: $289,950
Median household income recommended for buying a home: $83,440

 
4. Iowa

Median home price: $279,950
Median household income recommended for buying a home: $80,562

 
5. Pennsylvania

Median home price: $296,750
Median household income recommended for buying a home: $85,397

 
6. Kansas

Median home price: $280,298
Median household income recommended for buying a home: $80,662

 
7. Indiana

Median home price: $279,450
Median household income recommended for buying a home: $80,418

 
8. Minnesota

Median home price: $380,948
Median household income recommended for buying a home: $109,627

 
9. Maryland

Median home price: $408,323
Median household income recommended for buying a home: $117,505

 
10. Missouri

Median home price: $289,000
Median household income recommended for buying a home: $83,167

 

The 50 states and the median household income recommended for buying a home
  1. Alabama: $92,583

  2. Alaska: $121,585

  3. Arizona: $140,578

  4. Arkansas: $83,440

  5. California: $209,643

  6. Colorado: $161,002

  7. Connecticut: $143,729

  8. Delaware: $137,986

  9. Florida: $125,182

  10. Georgia: $109,354

  11. Hawaii: $229,341

  12. Idaho: $163,153

  13. Illinois: $83,440

  14. Indiana: $80,418

  15. Iowa: $80,562

  16. Kansas: $80,662

  17. Kentucky: $86,044

  18. Louisiana: $79,138

  19. Maine: $129,340

  20. Maryland: $117,505

  21. Massachusetts: $215,816

  22. Michigan: $76,361

  23. Minnesota: $109,627

  24. Mississippi: $83,426

  25. Missouri: $83,167

  26. Montana: $176,513

  27. Nebraska: $99,836

  28. Nevada: 139,742

  29. New Hampshire: $165,456

  30. New Jersey: $156,822

  31. New Mexico: $112,146

  32. New York: $189,923

  33. North Carolina: $114,951

  34. North Dakota: $104,555

  35. Ohio: $74,663

  36. Oklahoma: $84,892

  37. Oregon: $158276

  38. Pennsylvania: $85,397

  39. Rhode Island: $151,067

  40. South Carolina: $101,426

  41. South Dakota: $107196

  42. Tennessee: $120,855

  43. Texas: $102,160

  44. Utah: $168,693

  45. Vermont: $143,168

  46. Virginia: $121,534

  47. Washington: $174,700

  48. West Virginia: $71,080

  49. Wisconsin: $109,196

  50. Wyoming: $132,297

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