In June 2020, the median sales price of homes in the U.S. was $317,100. Fast-forward just four years, and the median home sales price is now $412,300 — a massive 30% jump in value.
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Unfortunately, wages aren’t growing quickly enough to keep up with home price increases. In June 2020, the average full-time worker earned $1,008 weekly. Today’s full-time employees earn an average of $1,151 weekly — a rise of 14.2%. The increase in house prices outpaces earnings, making it harder for many to afford a home, especially first-time homebuyers who don’t already have equity in an existing house or a sizable down payment to offer.
High interest rates aren’t helping, either. Current interest rates for a 30-year mortgage average 6.49%, compared with 2.99% in July 2020. That drives up monthly mortgage payments even further, making borrowing much more expensive.
However, the housing market isn’t all bad news for homebuyers. In some states, you may still be able to afford a home, even if your household income is $50,000 or less. States with affordable housing also generally have a lower cost of living, so groceries, utilities and transportation costs may be within your budget.
Take a look at these 13 states where you can afford a home on a $50,000 salary or less, according to data from a recent GOBankingRates study .
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West Virginia Minimum salary needed to comfortably afford a home: $32,418 2024 average home value: $155,080 Overall cost of living: 20.6% cheaper than the national average Groceries: 4.2% cheaper than the national average Healthcare: 27% more expensive than the national average Utilities: 14.1% cheaper than the national average Transportation: 9.9% cheaper than the national average Be Aware: 5 Types of Homes That Will Plummet in Value in 2024
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Mississippi Minimum salary needed to comfortably afford a home: $35,674 2024 average home value: $170,653 Overall cost of living: 21.3% cheaper than the national average Groceries: 5.1% cheaper than the national average Healthcare: 1.9% more expensive than the national average Utilities: 2.9% cheaper than the national average Transportation: 16.6% cheaper than the national average Explore More: 8 Places Where Houses Are Suddenly Major Bargains
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Louisiana Minimum salary needed to comfortably afford a home: $40,813 2024 average home value: $195,240 Overall cost of living: 10.1% cheaper than the national average Groceries: 7.3% cheaper than the national average Healthcare: 13.2% more expensive than the national average Utilities: 10.1% cheaper than the national average Transportation: 8.2% more expensive than the national average hstiver / Getty Images/iStockphoto
Kentucky Minimum salary needed to comfortably afford a home: $41,058 2024 average home value: $196,412 Overall cost of living: 17.7% cheaper than the national average Groceries: 5.8% cheaper than the national average Healthcare: 2.2% more expensive than the national average Utilities: 7.1% cheaper than the national average Transportation: 10.9% cheaper than the national average Sean Pavone / Getty Images/iStockphoto
Arkansas Minimum salary needed to comfortably afford a home: $41,467 2024 average home value: $198,364 Overall cost of living: 22.5% cheaper than the national average Groceries: 7.3% cheaper than the national average Healthcare: 7.9% cheaper than the national average Utilities: 4.4% cheaper than the national average Transportation: 18.4% cheaper than the national average Check Out: 20 Best Cities Where You Can Buy a House for Under $100K
DenisTangneyJr / iStock.com Oklahoma Minimum salary needed to comfortably afford a home: $41,840 2024 average home value: $200,153 Overall cost of living: 17.8% cheaper than the national average Groceries: 7.7% cheaper than the national average Healthcare: 13.8% more expensive than the national average Utilities: 0.3% cheaper than the national average Transportation: 10.8% cheaper than the national average Aaron Yoder / Getty Images/iStockphoto Iowa Minimum salary needed to comfortably afford a home: $44,394 2024 average home value: $212,367 Overall cost of living: 19.9% cheaper than the national average Groceries: 5.6% cheaper than the national average Healthcare: 8.2% more expensive than the national average Utilities: 1.5% cheaper than the national average Transportation: 28.6% cheaper than the national average Marc Morrison 713-858-8573 / Marc Morrison 713-858-8573 Kansas Minimum salary needed to comfortably afford a home: $45,533 2024 average home value: $217,817 Overall cost of living: 16.9% cheaper than the national average Groceries: 7% cheaper than the national average Healthcare: 3.9% more expensive than the national average Utilities: 4.4% more expensive than the national average Transportation: 20.7% cheaper than the national average Read Next: I’m an Economist: Here’s My Prediction for the Housing Market If Trump Wins the Election
gatorinsc / Getty Images/iStockphoto Alabama Minimum salary needed to comfortably afford a home: $45,572 2024 average home value: $218,004 Overall cost of living: 15.9% cheaper than the national average Groceries: 5.6% cheaper than the national average Healthcare: 18.9% more expensive than the national average Utilities: 1.2% more expensive than the national average Transportation: 14.1% cheaper than the national average InfiniteImpactStudios / Getty Images/iStockphoto Ohio Minimum salary needed to comfortably afford a home: $45,683 2024 average home value: $218,535 Overall cost of living: 17.3% cheaper than the national average Groceries: 3.9% cheaper than the national average Healthcare: 11.3% cheaper than the national average Utilities: Same as the national average Transportation: 16.1% cheaper than the national average ehrlif / Getty Images/iStockphoto Michigan Minimum salary needed to comfortably afford a home: $48,106 2024 average home value: $230,125 Overall cost of living: 8.5% cheaper than the national average Groceries: 6.6% cheaper than the national average Healthcare: 15.2% cheaper than the national average Utilities: 0.1% more expensive than the national average Transportation: 15.1% more expensive than the national average Trending Now: 7 Worst States To Buy Property in the Next 5 Years, According to Real Estate Agents
DenisTangneyJr / Getty Images/iStockphoto Indiana Minimum salary needed to comfortably afford a home: $48,347 2024 average home value: $231,278 Overall cost of living: 16.3% cheaper than the national average Groceries: 7.1% cheaper than the national average Healthcare: 5.6% cheaper than the national average Utilities: 2.8% cheaper than the national average Transportation: 14.6% cheaper than the national average peeterv / Getty Images Missouri Minimum salary needed to comfortably afford a home: $49,921 2024 average home value: $238,808 Overall cost of living: 14.4% cheaper than the national average Groceries: 5.1% cheaper than the national average Healthcare: 4.3% more expensive than the national average Utilities: 1.5% cheaper than the national average Transportation: 13.8% cheaper than the national average Cost of living information was sourced from Sperling’s BestPlaces .
This article originally appeared on GOBankingRates.com : 13 States Where You Can Buy a House on a $50K Salary or Less
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