In These 3 States, Home Affordability Is at an All-Time Low

Female sales agent meeting with clients in front of a house for sale.
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In theory, real estate prices should match income. California is a high-income state, and it has high real estate prices. Mississippi is a low-income state, and it has low real estate prices. 

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That’s logical. But when it comes to looking at median houses and median income, the numbers are different. In California, incomes and house prices are in sync so that 33% of households can afford a median house. Mississippi has a similar dynamic, with 39% of households able to afford a median house.

An analysis by HowMuch.net, reported by MarketWatch, found that the three states with the least-affordable median real estate prices are Vermont, Connecticut and Wyoming. In Vermont, only 16% of households can afford a median house. All three states are popular locations for vacation houses, which explains part of the discrepancy. 

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The most affordable state is Delaware, where 69% of households can afford a median house. Delaware also has the lowest housing cost, with a median residence costing $193,000. Comparatively, Hawaii has the most expensive housing, with a median price of $675,000 — only affordable for 29% of the population.

If you’re looking for a bargain, move to Delaware. The other most affordable states are Delaware’s neighbors, Maryland and Virginia. If you’re likely to earn a median income, you won’t be able to afford the median house in the 47 other states.

Maybe there’s a reason that President Biden is so proud of being from Delaware.

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About the Author

Ann Logue is a writer specializing in business and finance. Her most recent book is The Complete Idiot’s Guide: Options Trading (Alpha 2016). She lives in Chicago.
In These 3 States, Home Affordability Is at an All-Time Low
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