10 States Where You Need To Make the Most Income To Buy a Home

Median home sale prices in a city, state or region play a huge role in housing affordability for those looking to buy a house . But it’s not the only factor to consider. For instance, based on a recent data analysis by Badeloftusa.com , New York requires the highest annual salary to buy a home, yet median sale prices are higher in six other states .

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Badeloft analyzed a number of factors, including the median home sale price, the average debt-to-income ratio of borrowers in the state, home insurance rates, the state’s effective tax rate, and the overall cost-of-living index to pinpoint the ten priciest states to buy a home. Mortgage rates were calculated based on a 30-year, fixed rate mortgage at 7% interest.

In the top four states, you’ll need a six-figure income to afford a house, largely due to the high costs of living and high median selling price for a home. For example, Hawaii has a cost-of-living index of 133.5, the highest on the list of top 10 most expensive states to buy a house. The median sale price for a home in Hawaii is $784,700. You’ll save on home insurance, though, at just over $800 per month, on average.

California has the most expensive median sale price, of $852,900, but comes in behind Massachusetts on the list because of Massachusetts’ higher tax rate, home insurance premiums and cost-of-living index.

Compared to the most affordable states to buy a home, which are largely clustered in the Midwest and the South, the least affordable states are in the Northeast, with four notable exceptions. California ranks third on the list, Hawaii is fourth, Washington is sixth and Texas is the 10 ^th priciest state to buy a home.

If you have your heart set on a home in one of these states, you might consider using some of these tactics to pay less for your dream home.

This article originally appeared on GOBankingRates.com : 10 States Where You Need To Make the Most Income To Buy a Home