What do WWII battles, ballistic missiles, and the deadly brown tree snake have in common?
Typical home price: US$220,659
Median household income percentage of home value: 27%
Overall picture: In Alabama, house prices are relatively affordable. Home values are the ninth lowest in the country, and offset household incomes that are 80% of the national median.
Typical home price: US$430,577
Median household income percentage of home value: 17%
Overall picture: It's expensive to buy a home in Arizona, as prices are generally 23% higher while wages here are aligned to the national median.
Typical home price: US$369,997
Median household income percentage of home value: 24%
Overall picture: Although homes in Alaska are priced 6% higher than the typical national price, the median income is 18% higher than the national median, which offsets the figure.
Typical home price: US$198,511
Median household income percentage of home value: 28%
Overall picture: Arkansas' typical house prices are the third lowest in the country. Although the median income is 26% lower than the national median, the income-to-home value ratio is one of the best in the country.
Typical home price: US$760,526
Median household income percentage of home value: 12%
Overall picture: Median home prices in California are typically the second most expensive in the US. Even though residents generally make 22% more than the national median, the income-to-home-value ratio is the second lowest.
Typical home price: US$548,012
Median household income percentage of home value: 16%
Overall picture: The median price of a home in Colorado is the sixth highest in the US. Although median incomes are above the national median, the income-to-home-value ratio is also the sixth lowest.
Typical home price: US$722,619
Median household income percentage of home value: 14%
Overall picture: Even though the median income is 35% above the national median, the income-to-home-value ratio is the third lowest. Home values are the third highest in the nation.
Typical home price: US$405,050
Median household income percentage of home value: 22%
Overall picture: The high income-to-home-value ratio in Connecticut makes homes more affordable there, despite homes costing typically 16% more than the national median.
Typical home price: US$320,091
Median household income percentage of home value: 23%
Overall picture: Georgia homes are slightly less expensive than the mean average, however, the below-mean income means they aren't more affordable for Georgia residents.
Typical home price: US$370,761
Median household income percentage of home value: 22%
Overall picture: Despite homes being valued 6% higher than the national median, the median salary is 10% higher in the state which helps to offset this.
Typical home price: US$407,218
Median household income percentage of home value: 17%
Overall picture: There is a low income-to-home-value ratio in Florida, where salaries are 7% lower than the national median but house prices are typically 16% higher, making it one of the less affordable states.
Typical home price: US$971,167
Median household income percentage of home value: 10%
Overall picture: The most expensive state to buy a property. The income-to-home-value ratio reflects that even the higher-than-median incomes in Hawaii can't close the gap of the cost of a typical, single-family home.
Typical home price: US$216,265
Median household income percentage of home value: 32%
Overall picture: In Iowa, salaries are just 7% below the national median, while house prices are typically 62% lower, giving it the second highest income-to-home-value ratio in the nation.
Typical home price: US$444,451
Median household income percentage of home value: 16%
Overall picture: The median income in Idaho is 3% lower than the national median, while the typical Idaho house is 27% higher, making it a less affordable state.
Typical home price: US$233,554
Median household income percentage of home value: 29%
Overall picture: House prices in Indiana are typically valued 33% lower, helping to make up for the 11% lower median salary rates in the state.
Typical home price: US$255,659
Median household income percentage of home value: 30%
Overall picture: Homes in Illinois are typically priced below the national typical price, while median salaries are slightly higher, making the state a more affordable option overall.
Typical home price: US$418,269
Median household income percentage of home value: 23%
Overall picture: Salaries in Maryland are around 27% higher than the national median, slightly offsetting the 19% higher typical home price.
Typical home price: US$219,578
Median household income percentage of home value: 31%
Overall picture: Kansas has a high income-to-house-value ration, with the typical house prices being some of the most affordable in the country.
Typical home price: US$201,639
Median household income percentage of home value: 28%
Overall picture: Although the median income in Louisiana is 26% lower than the national, a typical single-family home costs 58% less, giving it a high income-to-home-value ratio.
Typical home price: US$385,874
Median household income percentage of home value: 18%
Overall picture: The income-to-home-value ratio is lower in Maine, where salaries are 7% below the national median, while the typical cost of a single-family home is high.
Typical home price: US$197,627
Median household income percentage of home value: 30%
Overall picture: Even though the household median income is 21% lower in Kentucky, house prices are 42% lower giving it a high income-to-home-value ratio.
Typical home price: US$336,351
Median household income percentage of home value: 24%
Overall picture: Houses in Minnesota are relatively affordable, thanks to a 10% higher national median income and house prices 4% lower than what's typical.
Typical home price: US$176,725
Median household income percentage of home value: 30%
Overall picture: The second lowest typical home prices in the country are found in Mississippi, and despite median incomes being 71% of the national median, the income-to-home-value ratio is the seventh highest in the country.
Typical home price: US$235,236
Median household income percentage of home value: 28%
Overall picture: Low home values and salaries that are close to the national median make Michigan a more affordable state to buy a home.
Typical home price: US$607,770
Median household income percentage of home value: 15%
Overall picture: Massachusetts has among the lowest income-to-home-value ratios in the country, even though incomes in the state are 26% higher than the national median.
Typical home price: US$240,129
Median household income percentage of home value: 27%
Overall picture: Even though the median income is 13% below the national, there's a high income-to-home-value ratio in Missouri where houses are valued at 69% of what's typical nationwide.
Typical home price: US$254,636
Median household income percentage of home value: 27%
Overall picture: With prices just 73% of the typical US home value, the income-to-home-value ratio is high in Nebraska.
Typical home price: US$293,540
Median household income percentage of home value: 20%
Overall picture: While typical house prices in New Mexico are lower, the low income-to-home-value ratio in the state raises concerns about affordability.
Typical home price: US$470,958
Median household income percentage of home value: 19%
Overall picture: The below-average income-to-home-value ratio in New Hampshire reflects the fact the typical home price in the state is an expensive US$470,958.
Typical home price: US$321,908
Median household income percentage of home value: 21%
Overall picture: While home prices are slightly lower in North Carolina, the median income is also slightly below average, giving it a low income-to-home-value ratio.
Typical home price: US$261,931
Median household income percentage of home value: 27%
Overall picture: There is a solid income-to-home-value ratio in North Dakota, where typical house prices are lower and the average salary sits close to the national median.
Typical home price: US$432,527
Median household income percentage of home value: 17%
Overall picture: The average salary in Nevada is just below the national median while typical house values are 24% above the typical US home price, making affordability a concern in Nevada.
Typical home price: US$454,673
Median household income percentage of home value: 15%
Overall picture: In Montana, the income-to-home-value ratio is one of the lowest, as median incomes are 10% lower while home prices are typically 30% more expensive.
Typical home price: US$425,011
Median household income percentage of home value: 19%
Overall picture: The income-to-home-value ratio in New York is low, as although wages are slightly higher (6%) than the median nationally, houses are valued at 121% of the typical US home value.
Typical home price: US$507,923
Median household income percentage of home value: 19%
Overall picture: Despite higher than-average median salaries, the high cost of a typical single-family home in New Jersey makes it less affordable.
Typical home price: US$220,031
Median household income percentage of home value: 30%
Overall picture: Home values in Ohio are the ninth lowest in the country. Median household incomes are 88% of the national average, giving it the ninth highest income-to-home-value ratio.
Typical home price: US$501,513
Median household income percentage of home value: 15%
Overall picture: Oregon has the ninth highest home values in the US while the median salary is just 1% higher there, making affordability a real concern for many.
Typical home price: US$444,716
Median household income percentage of home value: 18%
Overall picture: The median income in Rhode Island is only 9% above the national median, while house values are higher than what's typical, making it less affordable to purchase here.
Typical home price: US$287,956
Median household income percentage of home value: 22%
Overall picture: Income-to-home-value ratios are average in South Carolina, where both income rates and house prices are in line with the national median.
Typical home price: US$257,912
Median household income percentage of home value: 28%
Overall picture: The median household income in Pennsylvania is almost even with the national median, while the typical home is 74% of the national value making Pennsylvania a relatively affordable state.
Typical home price: US$199,559
Median household income percentage of home value: 30%
Overall picture: Although the median income is only 80% of the national median, house prices are 57% of the typical US home value in Oklahoma, making it among one the most affordable states.
Typical home price: US$297,804
Median household income percentage of home value: 23%
Overall picture: Houses are relatively affordable in South Dakota, where the median income is slightly lower than the national median, while home values are typically 15% lower.
Typical home price: US$397,388
Median household income percentage of home value: 19%
Overall picture: Vermont has average affordability, with home prices that sit 10% above the typical national home price, and median household incomes that are slightly above the national median.
Typical home price: US$518,938
Median household income percentage of home value: 17%
Overall picture: Utah is relatively unaffordable, with house values the seventh highest in the country. Even with a median income that's 19% higher than the national median, it's difficult to close the gap here.
Typical home price: US$310,132
Median household income percentage of home value: 21%
Overall picture: The median household income in Tennessee is 87% of the national median, which offsets low housing costs for a below-average home-to-income-value ratio.
Typical home price: US$377,498
Median household income percentage of home value: 23%
Overall picture: The income-to-home-value ratio is average in Virginia, where home values and incomes are 8% higher than the median.
Typical home price: US$303,414
Median household income percentage of home value: 24%
Overall picture: The home price in Texas is 13% below the typical home price nationally, while the median income is 96% of the national median, making income-to-home-values slightly above average here.
Typical home price: US$585,767
Median household income percentage of home value: 16%
Overall picture: Typical house prices are the fifth highest in the country in Washington. The income-to-home-value median is the lowest in the country, even though incomes are generally higher than the national median.
Typical home price: US$158,172
Median household income percentage of home value: 34%
Overall picture: The income-to-house-value ratio in West Virginia is the highest in the country, as typical house prices cost 45% of the national typical price. It's the most affordable state to buy a home.
Sources: (The Motley Fool) (Zillow Home Value Index)
See also: Why is the housing market so expensive?
Typical home price: US$339,601
Median household income percentage of home value: 21%
Overall picture: Wyoming has a slightly below-average income-to-home-value ratio, with home prices on par with the typical national price, but incomes slightly lower than the national average.
Typical home price: US$296,580
Median household income percentage of home value: 24%
Overall picture: The income-to-home-value is above average in Wisconsin, where median incomes are near the national median and family homes are typically valued below the median.
There are only a few topics of conversation that can generate heated discussions quite like house prices. And that's for good reason. From 1980 to the third quarter of 2023, the price of homes rose 576%. As of the third quarter of 2023, the typical home value in the US is US$350,113. While the average household income has also risen since the 1980s, it's not rising fast enough to keep up with these housing prices. In some states, this problem is more drastic.
By comparing the typical house price to the typical household income in each state, we can start to get an idea of the affordability of buying a home there. This is done by calculating the median household income as a percentage of the value of a typical home.
For example, if the median household income is US$50,000 per year, and a typical home costs US$200,000, they are earning 25% of the cost of their home. This is a reasonable balance between the value of your income and the value of your home. In some states, however, there is a larger discrepancy between the median household income and the cost of a home. If the percentage works out to 17%, that suggests that residents in that state carry a heavier financial burden when it comes to buying a house.
Curious to know which states score highest and lowest on the spectrum of typical house prices? Click on to find out.
The cheapest states to buy a house in 2024
They're on the rise again in 2024
LIFESTYLE Real estate
There are only a few topics of conversation that can generate heated discussions quite like house prices. And that's for good reason. From 1980 to the third quarter of 2023, the price of homes rose 576%. As of the third quarter of 2023, the typical home value in the US is US$350,113. While the average household income has also risen since the 1980s, it's not rising fast enough to keep up with these housing prices. In some states, this problem is more drastic.
By comparing the typical house price to the typical household income in each state, we can start to get an idea of the affordability of buying a home there. This is done by calculating the median household income as a percentage of the value of a typical home.
For example, if the median household income is US$50,000 per year, and a typical home costs US$200,000, they are earning 25% of the cost of their home. This is a reasonable balance between the value of your income and the value of your home. In some states, however, there is a larger discrepancy between the median household income and the cost of a home. If the percentage works out to 17%, that suggests that residents in that state carry a heavier financial burden when it comes to buying a house.
Curious to know which states score highest and lowest on the spectrum of typical house prices? Click on to find out.