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Peep This: Here’s the Average Salary Needed to Buy a Home Around the U.S.

Damn, Son.

The AMAZING aggregate website, HowMuch curated a list of average home prices for every state from Zillow which was then applied into a mortgage calculator to figure out monthly payments.

Keep in mind that mortgage payments consist of both the principal and the interest for the loan.

HowMuch explained: “…assumed buyers could contribute a 10% down payment. Another thing to keep in mind is that financial advisors commonly recommend the total cost of housing take up no more than 30% of gross income (the amount before taxes, retirement savings, etc.). Using this rule as our benchmark, we calculated the minimum salary required to afford the average home in each state.”

Here’s the breakdown:

Here's the Average Salary Needed to Buy a Home Around the US

Top Five Places Where You Need the Highest Salaries to Afford the Average Home

1. Hawaii: $153,520 for a house worth $610,000

2. Washington, DC: $138,440 for a house worth $549,000

3. California: $120,120 for a house worth $499,900

4. Massachusetts: $101,320 for a house worth $419,900

5. Colorado: $100,200 for a house worth $415,000

Top Five Places Where You Need the Lowest Salaries to Afford the Average Home

1. West Virginia: $38,320 for a house worth $149,500

2. Ohio: $38,400 for a house worth $149,900

3. Michigan: $40,800 for a house worth $160,000

4. Arkansas: $41,040 for a house worth $161,000

5. Missouri: $42,200 for a house worth $165,900

So, what are your thoughts on these numbers?

Sound off in the comments below!

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Written by John D. Saunders

John is a Marketing Strategist and Investor. As the Founder of 5Four Digital, a Marketing Agency in Miami, John leverages his understanding of money management and Marketing to create financial opportunities.

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