Here’s How Much You Must Make To Afford a Home in Your State in 2025

The American housing market, while nowhere near as affordable as it was before the COVID pandemic, became slightly more affordable this summer. Per Fortune, home prices are at a relative standstill (or, in some cases, are decreasing) as a result of increased supply and a declining demand. Additionally, the high mortgage rates of the early 2020s also have begun to soften.

While this is certainly good news for prospective homebuyers, it’s worth noting that the Real House Price Index (RHPI) has indicated that home affordability still remains 70% worse than it was in the pre-COVID era. The market is improving, but buying a new house in 2025 remains a very costly and serious financial endeavor.

To discern just how expensive it is on a state-by-state basis, GOBankingRates recently analyzed the average home prices in all 50 states. GOBankingRates then calculated the living expenses in each state after a home purchase is made (assuming a 30-year fixed mortgage with a 20% down payment) in an effort to determine just how high an annual salary must be in order to afford both the everyday costs of living and the purchase of a new home.

A number of states feature housing markets in which a salary of less than $100,000 per year can buy a home; that said, a staggering 23 states require a salary of at least $100,000 to purchase a home (and one state requires nearly twice that). Where does your state fall on the spectrum? Keep reading to find out.

• Salary needed: $74,400
• Average home price: $233,503
• Annual mortgage: $15,127

• Salary needed: $116,705
• Average home price: $399,298
• Annual mortgage: $28,064

• Salary needed: $104,875
• Average home price: $440,451
• Annual mortgage: $28,887

• Salary needed: $71,856
• Average home price: $219,686
• Annual mortgage: $14,606

• Salary needed: $167,516
• Average home price: $808,159
• Annual mortgage: $55,104

• Salary needed: $122,336
• Average home price: $570,217
• Annual mortgage: $37,740

• Salary needed: $122,485
• Average home price: $461,386
• Annual mortgage: $35,058

• Salary needed: $100,849
• Average home price: $402,775
• Annual mortgage: $26,657

• Salary needed: $102,516
• Average home price: $ 410,071
• Annual mortgage: $28,124

• Salary needed: $92,671
• Average home price: $340,505
• Annual mortgage: $23,456

• Salary needed: $194,264
• Average home price: $979,663
• Annual mortgage: $62,300

• Salary needed: $108,553
• Average home price: $474,688
• Annual mortgage: $31,322

• Salary needed: $92,872
• Average home price: $291,049
• Annual mortgage: $23,134

• Salary needed: $80,391
• Average home price: $254,685
• Annual mortgage: $17,544

• Salary needed: $78,957
• Average home price: $236,633
• Annual mortgage: $17,389

• Salary needed: $80,973
• Average home price: $243,763
• Annual mortgage: $17,815

• Salary needed: $74,683
• Average home price: $233,369
• Annual mortgage: $15,297

• Salary needed: $72,451
• Average home price: $214,905
• Annual mortgage: $14,331

• Salary needed: $110,283
• Average home price: $417,635
• Annual mortgage: $29,479

• Salary needed: $113,080
• Average home price: $450,547
• Annual mortgage: $31,621

• Salary needed: $154,689
• Average home price: $683,970
• Annual mortgage: $48,483

• Salary needed: $82,639
• Average home price: $258,725
• Annual mortgage: $18,805

• Salary needed: $97,257
• Average home price: $358,546
• Annual mortgage: $25,487

• Salary needed: $69,145
• Average home price: $192,171
• Annual mortgage: $12,872

• Salary needed: $80,305
• Average home price: $264,102
• Annual mortgage: $18,483

• Salary needed: $108,793
• Average home price: $467,758
• Annual mortgage: $31,426

• Salary needed: $86,476
• Average home price: $276,667
• Annual mortgage: $20,884

• Salary needed: $108,731
• Average home price: $473,733
• Annual mortgage: $31,306

• Salary needed: $129,270
• Average home price: $528,614
• Annual mortgage: $39,796

• Salary needed: $140,970
• Average home price: $585,619
• Annual mortgage: $46,196

• Salary needed: $87,791
• Average home price: $316,561
• Annual mortgage: $21,300

• Salary needed: $121,266
• Average home price: $484,979
• Annual mortgage: $35,784

• Salary needed: $92,249
• Average home price: $340,313
• Annual mortgage: $22,932

• Salary needed: $86,359
• Average home price: $287,163
• Annual mortgage: $20,269

• Salary needed: $82,855
• Average home price: $245,723
• Annual mortgage: $18,253

• Salary needed: $73,547
• Average home price: $219,286
• Annual mortgage: $15,105

• Salary needed: $122,875
• Average home price: $517,067
• Annual mortgage: $35,670

• Salary needed: $88,878
• Average home price: $286,255
• Annual mortgage: $20,921

• Salary needed: $122,176
• Average home price: $505,399
• Annual mortgage: $36,229

• Salary needed: $85,698
• Average home price: $307,719
• Annual mortgage: $20,274

• Salary needed: $92,258
• Average home price: $320,889
• Annual mortgage: $22,810

• Salary needed: $86,521
• Average home price: $336,113
• Annual mortgage: $22,212

• Salary needed: $91,488
• Average home price: $308,603
• Annual mortgage: $23,079

• Salary needed: $116,132
• Average home price: $546,677
• Annual mortgage: $36,018

• Salary needed: $112,981
• Average home price: $413,578
• Annual mortgage: $31,177

• Salary needed: $104,168
• Average home price: $417,034
• Annual mortgage: $28,727

• Salary needed: $138,153
• Average home price: $627,379
• Annual mortgage: $43,091

• Salary needed: $67,377
• Average home price: $173,970
• Annual mortgage: $11,479

• Salary needed: $95,351
• Average home price: $333,052
• Annual mortgage 24,541

• Salary needed: $93,733
• Average home price: $367,249
• Annual mortgage: $24,490

Methodology: For this piece GOBankingRates first surveyed monthly living expenses in all 50 states. The cost-of-living comparison included the following factors: (1) yearly mortgage by assuming 20% down payment, 30-year fixed loan, current interest rate as sourced from St. Louis Federal Reserve (6.58%) for every state and multiplying that by 12 (1 year), sourced from Zillow’s home value index and determined using an in-house Mortgage Calculator formula; (2) annual necessities cost (grocery, utilities, healthcare, and transportation) by taking the 2023 Bureau of Labor Statistics consumer expenditure survey and factored out by the Missouri Economic Research and Information Center’s cost of living index for the first quarter of 2025. Necessity costs were totaled the annual dollar cost of necessities in each state. This dollar amount for necessities was then doubled to find the (3) actual annual income needed to live comfortably in the state, assuming a person is following the 50-30-20 budgeting guideline, which requires an income double the cost of necessities. The amount of money specified for savings is equal to 20 percent of the total income needed, and the amount specified for discretionary spending is equal to 30 percent of the total income needed. All data was collected and is up to date as of Aug. 27, 2025.