Michigan Requires $84K Average Income for Homeownership Amid US Housing Affordability Gap

In 2025, the housing market in the U.S. remains challenging for many, with home prices and mortgage rates making affordability a significant issue. A study by Realtor.com highlights that the typical American household earns about 46% less than needed to afford a median-priced home of $439,950, with affordability gaps varying widely by state; Iowa emerges as the most affordable state where households nearly meet the recommended income to buy a home. Rental costs have also surged, with median rent reaching $1,300 nationally, which often requires nearly a full-time job to cover, particularly in high-cost states like New York where residents need to work over 90 hours monthly to pay rent. The disparity in housing costs is further emphasized by data showing vast differences in the most expensive cities per state, illustrating the uneven distribution of wealth across America. Income levels required to be considered upper-middle class also vary greatly, with Maryland demanding the highest income starting at $158,126, while states like Mississippi have much lower thresholds. Despite some wage growth, housing affordability has not improved significantly, as mortgage rates and home prices remain relatively flat compared to the previous year.