Here is how much household income you’ll need to afford the median-priced home in every US state

For anyone in the market for a new home, especially first-time homebuyers, high mortgage rates, high home prices and not enough housing supply to meet demand has made the whole process challenging to say the least.

For anyone looking to buy a new home, high mortgage rates, high home prices and a shrunken housing supply have made the whole process challenging to say the least. Now a new analysis from Bankrate.com released Monday finds that in nearly half of US states, buyers will need a six-figure household income just to afford a median-priced home in their state if they’re planning to get a mortgage. (The median is the price at which half of homes for sale in an area are more expensive and half are less expensive.) Back in January 2020, a six-figure income was needed in only six states and the District of Columbia. Assuming you make a 20% down payment and get a 30-year fixed-rate mortgage at the average 52-week rate, this map shows you how much household income Bankrate’s analysis found you’ll need to afford the median-priced home in your state. Keep in mind the study only considered the costs of securing a manageable mortgage payment (which includes principal, interest, property taxes and property insurance). “Manageable” means it won’t exceed 28% of your gross household income. The analysis did not factor in closing costs or the costs one incurs as a homeowner after you get the keys to your new house. It’s worth noting, too, that the median price of a home in a given state won’t necessarily reflect the median price in the part of the state you’re seeking to buy.