The Salary Needed To Afford A Home In Your State—Where Do You Fall?

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Because of the current market, homeownership has become a hot topic. Demand outweighing supply was a common feature for much of 2020-2021. However, rising interest rates have recently made it difficult to find potential buyers.

However, selling and buying homes is an inevitable part of daily life. Whether you’re looking to purchase your first home or improve your existing living situation, your budget and income will be key factors in choosing the right home. Since the 1980s, the following has been a popular standard: “30% Rule”It simply states that you should not spend more than 30% on housing costs.

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A recent analysis by GOBankingRatesThe financial service calculated the minimum wage required in each state to be able to afford the “average” home. GOBankingRates applied the 30% Rule to find the average home’s price in 2021. Using Zillow, they also factored in the mortgage cost, assuming a 30-year fixed loan at 6.29% interest with a 20% downpayment. Their full methodology can be found at the conclusion of their report. Here’s what they found:

Alabama: $64,222

  • Average home value: $201,656
  • Monthly mortgage payment: $1.059.68

Alaska: $102,513

  • Average home value $332,437
  • Monthly mortgage payment: $1.915.91

Arizona: $98,929

  • Average home value $441,026
  • Monthly mortgage payment: $24,022.08

Arkansas: $60,151

  • Average home value $174,123
  • Monthly mortgage payment $949.82

California: $153,805

  • Average home value $785,652
  • Monthly mortgage payment $4,344.58

Colorado: $114,889

  • Average home value: $490 848
  • Monthly mortgage payment $3,145.02

Connecticut: $102,703

  • Average home value $372,658
  • Monthly mortgage payment $2,380.62

Delaware: $88,663

  • Average home value: $347.728
  • Monthly mortgage payment: $1.891.03

Florida: $95,717

  • Average home value: $397.367
  • Monthly mortgage payment of $2,250

Georgia: $79,932

  • Average home value $308,459
  • Monthly mortgage payment: $1.749.44

Hawaii: $181,266

  • Average home value: $1.012,084
  • Monthly mortgage payment $5,267.80

Idaho: $101,664

  • Average home value: $468.187
  • Monthly mortgage payment: $2569.52

Illinois: $82,274

  • Average home value: $262.698
  • Monthly mortgage payment $1,730.71

Indiana: $68,527

  • Average home value: $216.473.
  • Monthly mortgage payment: $1.216.92

Iowa: $68,353

  • Average home value is $190,046
  • Monthly mortgage payment $1,166.55

Kansas: $69,582

  • Average home value: $203,630
  • Monthly mortgage payment: $1.224.47

Kentucky: $66,147

  • Average home value: $194.198
  • Monthly mortgage payment: $1.086.84

Louisiana: $66,987

  • Average home value: $210 980
  • Monthly mortgage payment $1,133.29

Maine: $94,248

  • Average home value of $351,259
  • Monthly mortgage payment: $2.088.79

Maryland: $98,650

  • Average home worth: $407 849
  • Monthly mortgage payment: $2360.73

Massachusetts: $131,904

  • Average home value $593,274
  • Monthly mortgage payment $3,468.61

Michigan: $73,093

  • Average home value: $228.841
  • Monthly mortgage payment $1,381.80

Minnesota: $88,607

  • Average home value $332,282
  • Monthly mortgage payment $1,934.40

Mississippi: $60,159

  • Average home value $162,815
  • Monthly mortgage payment $890.85

Missouri: $69,528

  • Average home value: $225 808
  • Monthly mortgage payment $1,297.62

Montana: $98,610

  • Average home value: $436.375
  • Monthly mortgage payment: $24,277.65

Nebraska: $74,544

  • Average home value $235,764
  • Monthly mortgage payment $1,468.79

Nevada: $103,420

  • Average home value: $466.756
  • Monthly mortgage payment of $2,526.66

New Hampshire: $115.167

  • Average home value $440,717
  • Monthly mortgage payment: $2.874.16

New Jersey: $118.727

  • Average home value $467,759
  • Monthly mortgage payment $3,144.07

New Mexico: $77.936

  • Average home value $288,250
  • Monthly mortgage payment: $1.567.57

New York: $97 524

  • Average home value: $367.223
  • Monthly mortgage payment $2,214.32

North Carolina: $82,239

  • Average home value: $310 569
  • Monthly mortgage payment $1,738.12

North Dakota: $79 735

  • Average home value: $277.872
  • Monthly mortgage payment $1,578.28

Ohio: $70,941

  • Average home value is $208,655
  • Monthly mortgage payment $1,296.42

Oklahoma: $62,647

  • Average home value: $177.979
  • Monthly mortgage payment: $1,000.49

Oregon: $117,544

  • Average home value is $519,395
  • Monthly mortgage payment: $2963.10

Pennsylvania: $81,125

  • Average home value: $262.698
  • Monthly mortgage payment: $1612.50

Rhode Island: $108,176

  • Average home value $432,324
  • Monthly mortgage payment of $2,632.09

South Carolina: $77.599

  • Average home value $283,988
  • Monthly mortgage payment: $1.530.19

South Dakota: $79 8,878

  • Average home value: $287.137
  • Monthly mortgage payment: $1693.12

Tennessee: $75,930

  • Average home value $289,085
  • Monthly mortgage payment: $1581.75

Texas: $84,601

  • Average home value is $303,546
  • Monthly mortgage payment: $1906.24

Utah: $114,938

  • Average home value $570,266
  • Monthly mortgage payment: $3.086.99

Vermont: $101,295

  • Average home value: $352,648
  • Monthly mortgage payment: $2261.62

Virginia: $91,220

  • Average home value $372,792
  • Monthly mortgage payment: $2.104.99

Washington: $128,641

  • Average home value $619,223
  • Monthly mortgage payment: $3.496.48

West Virginia: $59,660

  • Average home value: $136 981
  • Monthly mortgage payment: $738.09

Wisconsin: $80,943

  • Average home value $260,805
  • Monthly mortgage payment $1,622.62

Wyoming: $80,082

  • Average home value: $315 824
  • Monthly mortgage payment $1,696.47

These are alarming statistics, given that the median salary in the U.S.A is approximately $54,000 per annum according to Bureau of Labor Statistics. Even in Arkansas, single-person households can get a minimum salary that is higher than the median wage for American workers.

Home buyers often have additional expenses that aren’t included in their monthly living expenses. When crunching numbers, it is important to add extra expenses like student loans debt and other monthly costs that are not included. Additionally, housing costs are more than just a mortgage: taxes, home repairs, and insurance should all factor in if you’re shooting for the 30% Rule.

However, financing options are available to help those with lower incomes purchase a home. It is important to talk with a financial advisor and assess your budget before you make any major purchase.

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