Key findings
- The typical home is out of reach in 48 states and DC. Only in Nebraska and Ohio does the median household income cover the median listing price under the 28% rule.
- Nationally, the gap is about $119K. The median household earns $87,460 and can afford about $300,000, while the median listing is $419,250. Buying it takes roughly $122,000 a year.
- The widest gaps are in Montana, California, Hawaii and New York, where the median listing costs about twice what the median income supports. In Montana it is 2.13 times.
- Prices are easing, but not enough. Median listing prices are lower than a year ago in 40 of 51 places, yet at today's rates the median household would need to spend more than 40% of gross income on housing to buy the typical home in 23 of them.
- Lower rates would help at the margins. At 6%, the median U.S. household could afford about $338,000, and 8 more states would cross into affordability. Most of the gap is prices, not rates.
Every state, ranked by the gap
Click a column to sort. Click a state to open the home affordability calculator with its numbers filled in. "Gap" is the median listing price divided by the price the median income can afford.
| State | Median household income | Median listing price | Price the median income affords | Income needed for median listing | Payment as share of income | Gap |
|---|---|---|---|---|---|---|
| Montana | $86,770 | $635,000 | $298,000 | $184,800 | 59.6% | 2.13× |
| California | $100,800 | $725,000 | $346,000 | $210,900 | 58.6% | 2.09× |
| Hawaii | $105,100 | $732,450 | $361,000 | $213,100 | 56.8% | 2.03× |
| New York | $86,900 | $605,000 | $298,000 | $176,000 | 56.7% | 2.03× |
| Idaho | $87,840 | $593,000 | $301,000 | $172,500 | 55.0% | 1.96× |
| Wyoming | $81,030 | $496,500 | $278,000 | $144,500 | 49.9% | 1.78× |
| Massachusetts | $118,500 | $714,250 | $407,000 | $207,800 | 49.1% | 1.75× |
| Oregon | $92,740 | $550,000 | $318,000 | $160,000 | 48.3% | 1.73× |
| New Mexico | $67,620 | $399,475 | $232,000 | $116,200 | 48.1% | 1.72× |
| Rhode Island | $96,880 | $569,900 | $332,000 | $165,800 | 47.9% | 1.71× |
| Tennessee | $75,250 | $429,450 | $258,000 | $125,000 | 46.5% | 1.66× |
| Washington | $112,600 | $639,475 | $386,000 | $186,100 | 46.3% | 1.65× |
| Utah | $102,900 | $579,000 | $353,000 | $168,500 | 45.8% | 1.64× |
| Colorado | $102,500 | $564,000 | $352,000 | $164,100 | 44.8% | 1.60× |
| Nevada | $88,880 | $480,000 | $305,000 | $139,700 | 44.0% | 1.57× |
| Arizona | $86,570 | $459,900 | $297,000 | $133,800 | 43.3% | 1.55× |
| Florida | $77,920 | $409,950 | $267,000 | $119,300 | 42.9% | 1.53× |
| New Hampshire | $112,100 | $590,000 | $385,000 | $171,700 | 42.9% | 1.53× |
| Vermont | $95,290 | $499,450 | $327,000 | $145,300 | 42.7% | 1.53× |
| Connecticut | $101,400 | $522,500 | $348,000 | $152,000 | 42.0% | 1.50× |
| Mississippi | $57,840 | $292,250 | $198,000 | $85,000 | 41.2% | 1.47× |
| New Jersey | $111,400 | $559,500 | $382,000 | $162,800 | 40.9% | 1.46× |
| North Carolina | $80,250 | $400,000 | $275,000 | $116,400 | 40.6% | 1.45× |
| District of Columbia | $107,600 | $527,500 | $369,000 | $153,500 | 39.9% | 1.43× |
| Delaware | $99,800 | $484,998 | $343,000 | $141,100 | 39.6% | 1.41× |
| Alabama | $68,410 | $325,000 | $235,000 | $94,600 | 38.7% | 1.38× |
| Georgia | $82,100 | $389,750 | $282,000 | $113,400 | 38.7% | 1.38× |
| Maine | $95,150 | $450,000 | $327,000 | $130,900 | 38.5% | 1.38× |
| Arkansas | $68,060 | $318,743 | $233,000 | $92,700 | 38.2% | 1.36× |
| Virginia | $100,000 | $455,953 | $343,000 | $132,700 | 37.1% | 1.33× |
| South Dakota | $82,460 | $375,000 | $283,000 | $109,100 | 37.0% | 1.32× |
| Louisiana | $60,670 | $270,000 | $208,000 | $78,600 | 36.3% | 1.29× |
| Wisconsin | $88,020 | $389,900 | $302,000 | $113,400 | 36.1% | 1.29× |
| North Dakota | $85,060 | $370,700 | $292,000 | $107,900 | 35.5% | 1.27× |
| South Carolina | $82,320 | $359,945 | $282,000 | $104,700 | 35.6% | 1.27× |
| Alaska | $102,500 | $435,000 | $352,000 | $126,600 | 34.6% | 1.23× |
| Texas | $85,060 | $355,765 | $292,000 | $103,500 | 34.1% | 1.22× |
| West Virginia | $61,770 | $259,997 | $212,000 | $75,600 | 34.3% | 1.22× |
| Kentucky | $73,750 | $307,775 | $253,000 | $89,500 | 34.0% | 1.21× |
| Minnesota | $95,160 | $379,900 | $327,000 | $110,500 | 32.5% | 1.16× |
| Indiana | $76,180 | $299,000 | $261,000 | $87,000 | 32.0% | 1.14× |
| Michigan | $76,800 | $299,900 | $263,000 | $87,300 | 31.8% | 1.14× |
| Oklahoma | $75,390 | $296,643 | $259,000 | $86,300 | 32.1% | 1.14× |
| Maryland | $116,300 | $425,000 | $399,000 | $123,700 | 29.8% | 1.06× |
| Pennsylvania | $85,880 | $309,000 | $295,000 | $89,900 | 29.3% | 1.05× |
| Missouri | $84,700 | $300,000 | $291,000 | $87,300 | 28.9% | 1.03× |
| Illinois | $93,270 | $324,950 | $320,000 | $94,500 | 28.4% | 1.01× |
| Iowa | $81,890 | $284,900 | $281,000 | $82,900 | 28.3% | 1.01× |
| Kansas | $85,540 | $296,000 | $293,000 | $86,100 | 28.2% | 1.01× |
| Nebraska | $100,600 | $335,000 | $345,000 | $97,500 | 27.1% | 0.97× |
| Ohio | $85,150 | $284,000 | $292,000 | $82,600 | 27.2% | 0.97× |
| United States | $87,460 | $419,250 | $300,000 | $122,000 | 39.1% | 1.40× |
How we calculated it
For each state we took the median household income and asked how much house it could buy under the 28% rule that lenders use as a starting point: total housing costs (principal, interest, property tax and homeowners insurance) of no more than 28% of gross monthly income. We then compared that price with the median listing price, and worked backward to the income needed to buy the median listing.
- Mortgage: 30-year fixed at 7.40%, Freddie Mac's Primary Mortgage Market Survey average for the week of October 8, 2026.
- Down payment: 20%, so no private mortgage insurance.
- Property tax and insurance: 1.1% and 0.4% of the home's price per year, the same defaults as our home affordability calculator. Real rates vary widely by state and town.
- Other debt: none. A household with car or student loan payments would afford less.
- Income: median household income for 2025 from the Census Bureau's Current Population Survey (released September 2026).
- Home prices: median listing price for September 2026 from Realtor.com. Listing prices are asking prices for homes on the market, not sale prices, and can differ from what homes sell for.
Limits. Single-year state income estimates from the Current Population Survey have margins of error of a few percent, so treat small differences between states with caution and focus on the size of the gap. A 20% down payment is a high bar for many first-time buyers; with less down, the affordable price falls further once mortgage insurance is added.
Sources
- U.S. Census Bureau, Median Household Income by State, via FRED (series MEHOINUSXXA646N; U.S.: MEHOINUSA646N).
- Realtor.com, Housing Inventory: Median Listing Price by State, via FRED (series MEDLISPRIXX; U.S.: MEDLISPRIUS; DC: county series MEDLISPRI11001).
- Freddie Mac, 30-Year Fixed Rate Mortgage Average, via FRED (MORTGAGE30US).
Frequently asked questions
How much income do you need to buy a house in 2026?
To buy the median-priced listed home in the U.S. ($419,250), a household needs about $122,000 a year, assuming 20% down, a 7.40% 30-year mortgage and housing costs of no more than 28% of gross income. The median household earns $87,460.
In which states can the median household afford the typical home?
Only Nebraska and Ohio. In every other state and DC, the median listing price is above what the median household income supports under the 28% rule at today's mortgage rates.
Where is the gap between incomes and home prices widest?
Montana, where the median listing costs about 2.1 times what the median household can afford. California, Hawaii and New York also have gaps of 2 times or more.
Would lower mortgage rates fix affordability?
Partly. At a 6% rate, the median U.S. household could afford about $338,000 instead of $300,000, and 8 states would cross into affordability. Most of the gap would remain.
Can I use this data?
Yes. You are welcome to use the figures, chart or CSV in articles and reports with a link to this page as the source.