Realtor.com says 11 states still allow households earning the median income to afford a median-priced home without spending more than 30% of earnings on housing. The list skews Midwestern—and notably includes no Southern states.
The old rule says to keep housing costs to about 30% of your income. For many Americans, that line has been getting harder to hold.
Realtor.com’s latest numbers lay out the strain: in most states, a household earning the median income can’t buy a median-priced home without pushing beyond a “house poor” threshold—leaving less room for savings after monthly housing costs.
The pressure isn’t coming from just one place. Realtor.com points to the combined weight of high mortgage rates. high home prices. and economic headwinds such as inflation that keep lifting the cost of everyday essentials like food and gas. In that environment, even buyers with median incomes face a budget squeeze.
Realtor.com found 11 states where a household earning the median income can afford a typical home without spending more than 30% of its income. Most are in the Midwest, and no state in the South made the list.
“Midwestern states tend to have stronger labor markets. which keep incomes high relative to home values. ” said Joel Berner. a senior economist at Realtor.com. He also tied the results to income distribution: the region “has less of a lower tail of household incomes than the Southern states. so more Midwesterners end up able to afford homes.”.
Minnesota leads the ranking with a home-and-income fit that barely clears the benchmark. A household earning Minnesota’s median household income of $88,572 would need 29.9% of that income to afford a median home-list price of $388,212.
Maryland follows at 29.8%. Median household income there is $99,340, while the median home-list price is $434,302—leaving buyers just under the 30% line.
Missouri comes in with 29.5%: median household income is $69,725, and the median home-list price is $301,158.
West Virginia is at 29.4% with median household income of $60,185 and a median home-list price of $259,523.
Pennsylvania lands at 28.5%. Median household income is $74,855 and the median home-list price is $312,487.
Michigan is slightly lower on the list at 28.3%. Median household income is $70,131 and the median home-list price is $290,329.
Indiana matches that 28.3% figure. Median household income is $71,469, and the median home-list price is $295,810.
Kansas sits at 27%. Median household income is $74,030 and the median home-list price is $292,632.
Ohio is also at 27%. Median household income is $70,196 and the median home-list price is $277,348.
Illinois clocks in at 26%. Median household income is $80,648 and the median home-list price is $307,674.
Iowa brings up the bottom of the group at 25.4%. Median household income is $75,991 and the median home-list price is $282,886.
The difference between “affordable” and “stretching” is thin in these places. Each state in the 11-state list lands at or below the 30% target—exactly the number meant to keep buyers from draining savings to cover monthly housing costs—while the broader map remains dominated by budgets that would be pushed past the limit.
Realtor.com housing affordability 30% rule median income mortgage rates home prices inflation Midwest states homebuying
So it’s basically you gotta move to the Midwest to buy a house… cool cool.
I don’t get how anyone is saving if housing is 30% now. Like aren’t mortgage rates still crazy? Seems like this article is saying the same thing over and over.
Wait Maryland is under 30% but that’s like the most expensive part of the world lol. Maybe they mean before taxes? Or like with some magical down payment? Also “no Southern states” feels weird because I swear people buy there all the time.
Midwest has stronger labor markets so you can afford homes… sure, but tell that to the people I know who work two jobs. And if inflation is the issue, then why do they only list states? Sounds like a realtor thing trying to make it look not that bad. Minnesota barely clearing 29.9% also sounds like one grocery bill away from “house poor” anyway.