It’s one of the cornerstones of the American Dream—owning a house.
In recent years, it has become increasingly difficult for the average American to afford a home. Despite mortgage rates starting to come down, the reality is that middle-class families in less than half of America can afford an average-priced home in their state.
President Donald Trump, who campaigned on plans to lower mortgage rates, reduce inflation, and boost home affordability, carries some of this blame, according to recent surveys.
One survey from Clever Real Estate, a St. Louis-based real estate company, found that 70% of Americans fear an impending housing market crash—while 32% fear they won’t be able to afford housing payments as a result of weakness in the economy.
But there is hope on the horizon. As more states invest in new builds and listing prices start to come down, inventory has increased, creating opportunities for many aspiring homeowners.
Thriving metros like Phoenix, AZ; Palm Beach FL; and Albuquerque, NM, are among the top markets seeing home prices fall rapidly in 2025. Additionally, while California is experiencing a mass exodus among millennials due to house prices being out of reach, states like Texas, Colorado, and North Carolina are seeing considerable growth.
While still true that the struggle is real for some to become homeowners, other Americans will find that their salaries are more than enough to buy their dream home. It really all depends on where you live.
Middle-class Americans in only these 20 states can afford an average-priced home where they live(Realtor.com)
How much house can a middle-class American afford?
The following was calculated taking into consideration the most recent, available information on median household income per state, according to SmartAsset analysis of 2023 income data from the U.S. Census Bureau.
This information was then factored into the assumption that a prospective homebuyer from that state would secure a 6.67% 30-year fixed mortgage and have 10% available for a down payment.
Alabama
Median household income: $62,212
Median house price: $321,720
How much house a buyer could afford: $310,904.55
Alaska
Median household income: $86,631
Median house price: $422,500
How much house a buyer could afford: $432,938.53
Arizona
Median household income: $77,315
Median house price: $488,500
How much house a buyer could afford: $386,381.81
Arkansas
Median household income: $58,700
Median house price: $289,950
How much house a buyer could afford: $293,353.32
California
Median household income: $95,521
Median house price: $728,500
How much house a buyer could afford: $477,366.32
Colorado
Median household income: $92,911
Median house price: $559,475
How much house a buyer could afford: $464,322.84
Connecticut
Median household income: $91,665
Median house price: $499,450
How much house a buyer could afford: $458,095.95
Delaware
Median household income: $81,361
Median house price: $479,495
How much house a buyer could afford: $406,601.70
Florida
Median household income: $73,311
Median house price: $435,000
How much house a buyer could afford: $366,371.81
Georgia
Median household income: $74,632
Median house price: $380,000
How much house a buyer could afford: $372,973.51
Hawaii
Median household income: $95,322
Median house price: $796,947
How much house a buyer could afford: $476,371.81
Idaho
Median household income: $74,942
Median house price: $566,950
How much house a buyer could afford: $374,522.74
Illinois:
Median household income: $80,306
Median house price: $289,950
How much house a buyer could afford: $401,329.33
Indiana:
Median household income: $69,477
Median house price: $279,450
How much house a buyer could afford: $347,211.39
Iowa:
Median household income: $71,433
Median house price: $279,950
How much house a buyer could afford: $356,986.51
Kansas:
Median household income: $70,333
Median house price: $280,298
How much house a buyer could afford: $351,489.25
Kentucky:
Median household income: $61,118
Median house price: $299,000
How much house a buyer could afford: $305,437.28
Louisiana:
Median household income: $58,229
Median house price: $275,000
How much house a buyer could afford: $290,999.50
Maine:
Median household income: $73,733
Median house price: $449,450
How much house a buyer could afford: $368,480.76
Maryland:
Median household income: $98,678
Median house price: $408,323
How much house a buyer could afford: $493,143.43
Massachusetts:
Median household income: $99,858
Median house price: $749,950
How much house a buyer could afford: $499,040.48
Michigan:
Median household income: $69,183
Median house price: $265,350
How much house a buyer could afford: $345,742.13
Minnesota:
Median household income: $85,086
Median house price: $380,948
How much house a buyer could afford: $425,217.39
Mississippi:
Median household income: $54,203
Median house price: $289,900
How much house a buyer could afford: $270,879.56
Missouri:
Median household income: $68,545
Median house price: $289,000
How much house a buyer could afford: $342,553.72
Montana:
Median household income: $70,804
Median house price: $613,375
How much house a buyer could afford: $353,843.08
Nebraska:
Median household income: $74,590
Median house price: $346,925
How much house a buyer could afford: $372,763.62
Nevada:
Median household income: $76,364
Median house price: $485,598
How much house a buyer could afford: $381,629.18
New Hampshire:
Median household income: $96,838
Median house price: $574,950
How much house a buyer could afford: $483,948.02
New Jersey:
Median household income: $99,781
Median house price: $544,950
How much house a buyer could afford: $498,655.67
New Mexico:
Median household income: $62,268
Median house price: $389,700
How much house a buyer could afford: $311,184.41
New York:
Median household income: $82,095
Median house price: $659,974
How much house a buyer could afford: $410,269.86
North Carolina:
Median household income: $70,804
Median house price: $399,450
How much house a buyer could afford: $353,843.08
North Dakota:
Median household income: $76,525
Median house price: $363,322
How much house a buyer could afford: $382,433.78
Ohio:
Median household income: $67,769
Median house price: $259,450
How much house a buyer could afford: $338,675.66
Oklahoma:
Median household income: $62,138
Median house price: $294,995
How much house a buyer could afford: $310,534.73
Oregon:
Median household income: $80,160
Median house price: $550,000
How much house a buyer could afford: $400,599.70
Pennsylvania:
Median household income: $73,824
Median house price: $296,750
How much house a buyer could afford: $368,935.53
Rhode Island:
Median household income: $84,972
Median house price: $524,950
How much house a buyer could afford: $424,647.68
South Carolina:
Median household income: $67,804
Median house price: $352,450
How much house a buyer could afford: $338,850.57
South Dakota:
Median household income: $71,810
Median house price: $372,500
How much house a buyer could afford: $358,870.56
Tennessee:
Median household income: $67,631
Median house price: $419,965
How much house a buyer could afford: $337,986.01
Texas:
Median household income: $75,780
Median house price: $355,000
How much house a buyer could afford: $378,710.64
Utah:
Median household income: $93,421
Median house price: $586,200
How much house a buyer could afford: $466,871.56
Vermont:
Median household income: $81,211
Median house price: $497,500
How much house a buyer could afford: $405,852.07
Virginia:
Median household income: $89,931
Median house price: $422,325
How much house a buyer could afford: $449,430.28
Washington:
Median household income: $94,605
Median house price: $607,075
How much house a buyer could afford: $472,788.60
West Virginia:
Median household income: $55,948
Median house price: $247,000
How much house a buyer could afford: $279,600.20
Wisconsin:
Median household income: $74,631
Median house price: $379,450
How much house a buyer could afford: $372,968.51
Wyoming:
Median household income: $72,415
Median house price: $459,725
How much house a buyer could afford: $361,894.05
The middle-class struggle to afford a home
When comparing the median income and median home price by state, it’s clear there is some work to be done to bridge the gap.
“There are only 20 states where a middle-class family can feasibly afford to purchase the median home. In 30 others, a middle-class family would have to seriously stretch their budget beyond the 30%-of-income rule to pay a mortgage,” explains Realtor.com® Senior Economist Joel Berner.
“Homeownership is a serious challenge in the current environment of high listing prices and high mortgage rates, so many middle-class families are finding that they need to remain renters for the time being.”
Still, he advises anyone looking to buy a home in the coming year to stay positive and keep a weathered eye out for upcoming opportunities.
“We are seeing positive developments for buyers in 2025 ahead of the peak buying season, with median listing prices falling, price reductions increasing, and homes spending longer on the market than they did last year,” he adds. “If these trends continue, we may see more states where middle-class families can afford the median-priced home.”
Defining the middle class
Based on Pew Research’s definition of middle class, a person or family is considered in the middle class if their total household income is two-thirds to double the median household income of a given location.
Surprisingly, that means that in order to qualify as middle class in most of America, you need to be bringing in a six-figure salary. In fact, the peak income of what’s considered middle class for households exceeds $100,000 in every U.S. state, according to a SmartAsset analysis of 2023 income data from the U.S. Census Bureau. (The 2023 metrics are the most recent available.)
For example, in Arizona the median household income is $77,315. You would be considered a middle-class earner if you then made between $51,538 and $154,630.
According to the data, Massachusetts is the priciest state for middle-class living, with a household income falling between $66,565 and $199,716. It’s followed by New Jersey ($66,514 to $199,562) and Maryland ($65,779 to $197,356). Mississippi is the leanest state for middle-class earnings, with a range of $36,132 to $108,406
Dina Sartore-Bodo is a senior editor at Realtor.com covering real estate advice, home improvement trends, and interior design. She was previously the managing editor at HollywoodLife.com, executive editor at PerezHilton.com, and managing editor at The Hollywood Gossip. Her work has also appeared on MSN, Yahoo News, and BlogHer. She is a proud graduate of Emerson College in Boston and is originally from New Jersey.
APRIL 2, 2025
Realtor.com
