Even as household earnings rose in almost every state, the gap between what families bring in and what it takes to buy a median-priced home remains wide. According to data from the US Census and Realtor.com, the income needed to afford a home exceeds the median household income in every state, with the shortfall ranging from just over $2,000 to nearly $100,000.
A National Affordability Shortfall
The national median household income reached $84,780 in 2025, up about 3.8% from the prior year. Yet with the national median listing price at $419,250 in September 2026, the typical household remains $31,136 short of the recommended income to buy, based on a 7.32% mortgage rate and a 10% down payment.
Realtor.com senior economist Hannah Jones noted that mortgage rates are more than a full percentage point higher than they were a year earlier, which squeezes buyer budgets and offsets the gains from softening prices and rising incomes. Nationally, the median household income is not sufficient to afford the median-priced home in any state, Jones said.
States Where the Gap Is Smallest
In a handful of states, the additional income required is measured in thousands rather than tens of thousands. Iowa leads with the smallest gap: households there earn a median of $76,483, and need $2,287 more to afford the typical home. Illinois follows at $3,168, then Ohio at $3,718, Pennsylvania at $3,961, and Kansas at $4,015.
Michigan ($7,086), Missouri ($7,460), Indiana ($8,153), Louisiana ($9,512), and Maryland ($9,806) round out the ten states with the lowest additional income needed.
States Where the Gap Is Largest
At the other end of the spectrum, Montana requires the most extra income: $98,469 above its median household income of $77,099. California is close behind at $98,292, followed by Hawaii at $97,498, Massachusetts at $90,940, and Idaho at $79,721.
New York ($78,063), Washington ($74,859), Rhode Island ($66,529), Oregon ($65,113), and Utah ($60,774) complete the top ten states with the largest affordability gaps.
The Full State-by-State Breakdown
Below is the additional household income needed to afford the median-priced home in each state, listed in ascending order of the gap.
- Iowa: $2,287
- Illinois: $3,168
- Ohio: $3,718
- Pennsylvania: $3,961
- Kansas: $4,015
- Michigan: $7,086
- Missouri: $7,460
- Indiana: $8,153
- Louisiana: $9,512
- Maryland: $9,806
- West Virginia: $10,545
- Nebraska: $11,008
- Minnesota: $12,739
- Oklahoma: $13,576
- Texas: $15,738
- Kentucky: $18,648
- North Dakota: $20,948
- Mississippi: $21,457
- Alabama: $22,194
- Arkansas: $22,539
- South Dakota: $23,176
- Alaska: $25,051
- South Carolina: $25,847
- Georgia: $25,913
- Virginia: $26,742
- Wisconsin: $27,588
- Florida: $32,499
- North Carolina: $32,956
- District of Columbia: $36,341
- New Mexico: $40,107
- Delaware: $41,574
- Maine: $42,658
- Tennessee: $42,861
- Arizona: $44,215
- Connecticut: $44,407
- New Jersey: $46,896
- Nevada: $47,515
- Vermont: $52,072
- Colorado: $56,208
- New Hampshire: $56,367
- Wyoming: $56,381
- Utah: $60,774
- Oregon: $65,113
- Rhode Island: $66,529
- Washington: $74,859
- New York: $78,063
- Idaho: $79,721
- Massachusetts: $90,940
- Hawaii: $97,498
- California: $98,292
- Montana: $98,469
Income Gains Don’t Close the Gap
Some states posted notable income growth between 2024 and 2025. Rhode Island saw a 9.02% increase, and Virginia rose 7.85%, yet both still require five-figure additional income to afford a median-priced home. Meanwhile, Alaska and the District of Columbia experienced slight declines in median household income, at -0.47% and -0.18% respectively, adding to their affordability challenges.
The data underscores that rising wages alone have not been enough to offset higher borrowing costs and home prices, leaving a persistent shortfall for would-be buyers across the country.