Depending on where you live, it may be easy or extremely difficult, financially speaking, to be able to buy the average-priced home. How much or how little is based on the interaction of supply and demand. High costs can limit supply. So can timely and costly planning, zoning and entitlement processes.
To ascertain how much income was necessary to buy the average price home in each state, the study by HowMuch.Net utilized state average home prices provided by Zillow. They then applied a mortgage calculator and estimated how much income was necessary to buy the average priced home assuming the state’s effective interest rate (Note – rates varied from state to state in a range from 4 to 5 percent). They assumed that the average buyer had a 10 percent down payment and that the total cost of housing could be no greater than 30 percent of gross income.
The findings for the 10 states with the least required income are shown in the next table.
As always, for any list there is a bottom. The next table shows the 10 states that require the greatest average income to buy the average-priced home. Note that to purchase the average priced home in Hawaii (the most expensive) takes four times more income than West Virginia (the least expensive state).
The next table shows all 50 states sorted both alphabetically and by required average income.
To read the summary from HowMuch.Net Click https://howmuch.net/articles/salary-to-afford-the-average-home-in-your-state
The significant variability of required income shows how much location comes into play when housing costs are examined. Once again I invoke the TINSTAANREM axiom — There Is No Such Thing As A National Real Estate Market. These data prove this.