Owning a home is becoming increasingly out of reach for many American families, especially in states where the cost of living is higher. A recent analysis from real estate marketing platform Realtor.com shows how much income a family of four needs to buy a typical three-bedroom home in each state, and according to the analysis, nearly half of U.S. families don’t earn enough to cover mortgage costs on such homes. Hawaii is the most expensive state, where the median home costs nearly six times the average family income. A family would need over $229,000 annually to afford a home there, which is 41% more than what most families earn. California ranks close behind, with a recommended income of $209,000, almost 39% higher than the state’s median family income.
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. Read more
