Here’s The Salary You Need To Earn By State To Become A Homeowner
Buying a home is a monumental moment in adulthood, especially if it's your first house. You get a yard to decorate however you wish, plenty of parking, and a bevy of other perks. Before you buy, however, there are a ton of the ins and outs potential homebuyers must know. For instance, is the area you're looking at growing? How much will the value of the property appreciate over the years? If you're moving out of state, considering the salary you need is also pivotal. Here's the average salary you'll need to earn to buy a home in these states.
Alabama - $36,760
If you plan on moving to Alabama, then you're in luck. Alabamians get the luxury of enjoying a cheaper cost of living thanks to the home prices being lower than the national average. If you earn a salary of $36,760 or more, then you should be fine purchasing a home in Alabama.
That comes down to a monthly income of $3,063, where the average monthly mortgage payment is only $919. After you're done paying bills, spending a little less than a thousand shouldn't be detrimental to your bank account.
Colorado - $73,600
Located between Utah and Kansas, the state of Colorado is the fifth most expensive place to buy a home. That might come as bad news for anyone considering becoming a Denver Broncos fan. That means you must earn a padded salary to get some property.
With the average monthly mortgage payment at $1,840, you have to be bringing in roughly $73,600 in salary to get a home in Colorado. The median home price in the Centennial State is $405,000.
Arizona - $50,880
Here's a state for all those who love the desert. Home to Grand Canyon National Park, Arizona is a beautiful place to purchase a home. You'd only have to make sure that you're making at least $50,880 a year before you buy.
A GoBankingRates study uncovered that Arizona is a popular place for millennial buyers due to the affordability. The average mortgage payment is $1,272. No wonder millennials are chomping at the bit to own property in Arizona.
Florida - $52,640
Living in Florida comes with a price. For one, you have to hear about all those wild "Florida man" stories. Secondly, the monthly mortgage payments average at $1,316. If you can get past reason number one, then all you need is $52,640 in yearly income to responsibly own a home in Florida.
Florida is also one of the best states to retire rich according to GOBankingRates. If you bring home at least $4,386 a month, then you should be fine in the Sunshine State.
Hawaii - $110,520
Have you ever considered living on an island? One of the best perks is that you'd be surrounded by beaches and you'd have access to some of the best seafood. Luckily, Americans have the option of living the island life in Hawaii.
The only hurdle is that Hawaii requires the highest yearly salary out of all of the states to own a house. If you aren't making $110,520, then it might be a problem owning property in the Aloha State. Your monthly mortgage payment would be around $2,763.
Arkansas - $31,320
Here we have another state where you don't have to be a high earner to own a home. GOBankingRates revealed that people could stretch their home-buying dollar the furthest in Arkansas. If you earn $31,320 a year, this is the state for you if you're interested.
Monthly mortgage payments are at $738, which is a few hundred less than what some people pay for rent in California cities! It sounds like the perfect place to live while saving money.
California - $89,280
They say it never rains in Southern California and that the weather is pleasant year-round. These are two factors that influence how much someone needs to earn in salary before they decide to buy a home in California. The number is $89,280, which isn't as bad as you might expect.
Yes, San Francisco is the most expensive city to live in, but not everyone aims to purchase in the competitive market. Across the state, expect the average monthly mortgage price to be in the range of $2,232.
Illinois - $37,840
Living in Illinois isn't as costly as one might expect. The mean cost of buying a home out there is way less than the average, so Illinois is one of the cheapest places to live. Of course, you probably won't be living in Chicago if you make $37,840.
After doing some research, you should be able to find a place where the mortgage payments are as low as $946. If you bring in $3,153 in monthly income, you should do okay.
Massachusetts - $75,360
If you're looking to live in New England, the state of Massachusetts is a desirable option. Not only are you a short distance from the Big Apple, but you have the great city of Boston as well. However, if you want to buy a home in Boston, you would probably need a little more than the state's average salary that's required to own a home, which is $75,360.
After you compare the mean home price by state, Massachusetts sits among the highest in America. The median listing for a home is $415,000, so you better start saving!
Indiana - $31,320
Good news folks, if you thought we finished listing states with incredibly low salary requirements to own a home, you're in luck thanks to Indiana. The Hoosier State only requires an average of $31,320 yearly income if you want to buy a house.
Some people can earn that while working part-time, so it wouldn't be surprising to see a higher scale of young folks in Indiana. Mortgage payments are around $738.
Nevada - $55,680
If you like to party and gamble, then Las Vegas would be a perfect location for you. In Nevada, you can buy a home with no regrets if your salary is at least $55,680. That doesn't sound too bad, does it?
The prices in Nevada have slowly been on the rise as well, especially in the Vegas area thanks to a ton of new homes getting built. If you plan on buying soon, your property is only going to appreciate.
New Jersey - $51,720
It isn't New York, but it's pretty close! Most of the east coast states aren't cheap to live in, but they are doable. New Jersey borders New York, one of the most expensive places in the country to live, so it makes sense that it's not that far off from their prices (we'll get to New York soon).
The good news is that the median home listing price for New Jersey fell a good amount since 2017, nearly $20,000. If you earn $51,720 a year, you can own a home in New Jersey.
Texas - $49,840
Everything is bigger in Texas, except the average salary you would need to live there. Surprisingly, with big cities like San Antonio, Houston, and Dallas, you can earn less than $50k to own a home in Texas.
The exact number is $49,840, which equates to needing a monthly income of $4,153. Some college grads get their first job earning more than that, so this is entirely doable. The only thing about Texas is the humidity isn't so fun.
Ohio - $28,800
The state of Ohio has the lowest salary needs on this list so far. This means that you may not need a college degree or specialized skills to purchase a home in the Buckeye State. You'll need an annual income of $28,800, which is significantly lower than the lowest state we've already mentioned.
The monthly mortgage payment in Ohio averages to $720. You can nearly earn the wage required to own a home by working full-time on Ohio's minimum wage pay scale ($8.55/hr). If only every state were this inexpensive, that would make life easier for so many more people.
New York - $63,360
They call New York the city the never sleeps, but maybe that's because people are up all night trying to scrape together enough money for the high rent prices! Jokes aside, you'd probably be better off saving to own a home out there if you want to move there.
Folks making at least $63,360 can afford the average monthly mortgage payment of $1,584. The median home price is around $345,000 in the Empire State.
Minnesota - $46,720
As of right now, the minimum salary needed to buy a home in Minnesota is lower than $50k. That number should be rising soon for this cold midwest state with an expected increase in home value of almost four percent by the end of 2020.
Still, $46,720 is manageable if you want to live there soon. Now may be the right time to purchase a home in the Twin Cities before home prices increase.
Louisiana - $38,080
A survey conducted by GOBankingrates says that Louisana is a state where you're least likely to live paycheck to paycheck, so that's automatically a plus. That partially has to do with the lower housing costs, with mortgage payments at around $952.
If you bring home $38,080 in salary, then you're qualified to own a home in Louisana. Another bonus is that you'll be in the state that hosts the biggest Mardi Gras parties! It sounds like this is a good deal.
Missouri- $31,800
If you know anyone who lives in the state of Kansas, then you are already well aware of how affordable the cost of living is there. You can rent out a two bedroom apartment in a nice area of Kansas City for less than $900.
Earning at least $31,800 a year can get you far in Missouri. The average mortgage cost is only $795, so there's that. When it comes to affordability, this midwest state is as inexpensive as they come.
Mississippi - $33,120
As kids, it was always challenging to try and spell Mississippi. As an adult, its tantalizing to know that it's easier than most to purchase a home in this great southern state. Making a minimum of $33,120 per year qualifies you as a worthy homeowner.
The monthly mortgage payment is only $828, which is incredibly low compared to the average housing cost across other parts of the U.S. If you're thinking about moving to an affordable state in the south, Mississippi should be on your list.
Michigan - $30,680
Out of every state, Michigan has the third-lowest annual income needed to be a homeowner. Making $30,680 in a year is entirely obtainable, so your only issue would be finding a suitable home for you. Maybe somewhere in Detroit?
Yes, there are some water problems currently going on in Flint, Michigan, but that shouldn't distract you from the low housing prices. Owning appreciating property will be better for you in the long run, and that's a fact.
