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.
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.
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.
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