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Here's how much you need to earn to afford a home in each U.S. state

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Published  April 2, 2025 12:49pm CDT
Real Estate
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FILE-A For Sale sign is displayed in front of a home in Miami, Florida. (Photo by Joe Raedle/Getty Images)

The Brief

    • Homebuyers need an income exceeding $100,000 to purchase a house, according to a new study.
    • Washington, D.C., Hawaii, and California require the most income for a home.
    • West Virginia ranked as the top state to buy a home with a household income under $100,000.

Purchasing a home is becoming even more expensive for consumers searching for housing as new data shows that having a significantly high household income is necessary to afford one. 

In Bankrate’s 2025 Housing Affordability Study released data in their study that shows homebuyers in 30 states and Washington, D.C. need at least $100,000 in annual household income to afford a typical home in their area.

RELATED: Mortgage rates fall for fifth straight week: What it means for homebuyers

States requiring the most and least income to buy a home 

Local perspective:

Bankrate’s study listed states that require both high and low annual incomes to buy a home. 

Four states and Washington, D.C. require the most annual household income to buy a home. Here are the top five below. 

  1. District of Columbia: $240,009
  2. Hawaii: $235,638
  3. California: $213,447
  4. Massachusetts: $174,392
  5. Colorado: $168,643

Income needed to afford a home by state

Meanwhile, these five states don’t require nearly the same amount of money needed to purchase a house. 

  1. West Virginia: $64,179
  2. Iowa: $70,437
  3. Ohio: $71,080
  4. Mississippi: $72,072
  5. Indiana: $72,342

What are strategies consumers can use to afford a home?

Big picture view:

Buying a home may feel daunting, but it’s not impossible. And Bankrate has tips you can use whether you’re considering purchasing a house now or in the future:

  • Understanding how far your income can stretch.
  • Prioritizing your credit score, which determines your mortgage rate.
  • Checking eligibility for down payment assistance. These programs are created for homebuyers with lower to moderate incomes.
  • Consider a range of housing options.
  • Be patient if you’re not ready to buy a home.

RELATED: Housing affordability improved in half of the largest US markets last year; see the list

Bankrate collected data for its study from an evaluation of the minimum annual pre-tax income a household needs to afford a median-priced home in all 50 U.S. states and the District of Columbia in 2025 compared to 2020. 

The consumer financial services company also used Redfin’s median sale price data from January 2020 and January 2025 to determine homebuyers' need to buy a home by calculating monthly mortgage payments for every state and Washington, D.C. 

The Source: Information for this story was provided by Bankrate’s 2025 Housing Affordability Study, which gathered data using an evaluation of the minimum annual pre-tax income a household needs to afford a median-priced home in all 50 U.S. states and Washington, D.C. in 2025 compared to 2020. This story was reported from Washington, D.C. 


 

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