How much more money you need to make to afford a home in every US state
Buying a home in 2026 takes more money than the typical household earns in any US state, according to a new report from Realtor.com.
Incomes have risen in most states across the United States, but they still fall short of the price tag for the typical home. To afford the median-priced home, households need an additional income ranging from $2,287 to $98,469, according to data from Realtor.com. While states like Rhode Island and Virginia experienced significant income growth of 9.02% and 7.85% respectively from 2024 to 2025, it's still necessary to bring in a five-figure amount more to purchase a median-priced home in each state.
Despite the increase in household income, higher mortgage rates are making it more challenging for buyers to afford homes. Mortgage rates are now more than one percentage point higher than last year, which reduces buyer budgets and counteracts affordability gains from decreasing home prices and rising incomes, according to Hannah Jones, a senior economist at Realtor.com.
Nationally, the median household income of $84,780 in 2025 is only $31,136 less than the median listing price of $419,250 in September 2026, assuming a mortgage rate of 7.32% and a 10% down payment. The additional income needed to buy a home varies significantly by state, with Iowa requiring $2,287, while West Virginia needs $10,545.
States ordered from the least to the most additional income needed include Iowa, Illinois, Ohio, Pennsylvania, Kansas, Michigan, Missouri, Indiana, Louisiana, Maryland, West Virginia, Nebraska, Minnesota, and Oklahoma.
Written by urgent.news from Business Insider's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
