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Study finds homeownership is only affordable in three U.S. states
The Independent • • business
Key Points:
- Only three states—Louisiana, Iowa, and Minnesota—meet the affordability standard for homeownership, where mortgage payments are 30% or less of median income, according to a HireAHelper study.
- Louisiana leads in affordability, with homeowners earning $6,000 more annually than their median mortgage costs, though these states often have fewer job opportunities and slower economic growth.
- In 47 other states, monthly homeownership costs exceed the 30% income threshold, with California being the most unaffordable, requiring an income increase of over $100,000 to meet affordability standards.
- The national median home sale price surpassed $400,000 in December 2024 and has remained above that level through early 2026, driven by rising prices and higher mortgage rates.
- Mortgage rates have surged to an average of 6.49%, a 145% increase from the pandemic low of 2.65% in January 2021, further exacerbating homeownership challenges for many Americans.
