Posted on 11/20/2024 9:07:02 PM PST by SeekAndFind
With steadily increasing home prices and stagnating wages among lower-wage workers, home ownership for many Americans has become increasingly unaffordable.
The home price-to-income ratio measures the relationship between the median home price and the median household income. This metric is often used to gauge housing affordability, accounting for variations in the cost of living.
This map, via Visual Capitalist's Kayla Zhu, shows home price-to-income ratio of each U.S. state, using data from a Construction Coverage analysis of Zillow and U.S. Census Bureau data as of June 2024.
The table below shows the home price-to-income ratio for each U.S. state, where Hawaii (9.1) and California (8.4) at the top—both well over the national average of 4.7.
| Rank | State | Ratio |
|---|---|---|
| 1 | Hawaii | 9.1 |
| 2 | California | 8.4 |
| 3 | Montana | 6.6 |
| 4 | Oregon | 6.4 |
| 5 | Massachusetts | 6.3 |
| 6 | Washington | 6.3 |
| 7 | Idaho | 6.1 |
| 8 | Washington | 6 |
| 9 | Colorado | 6 |
| 10 | Nevada | 5.9 |
| 11 | Utah | 5.7 |
| 12 | New York | 5.7 |
| 13 | Arizona | 5.7 |
| 14 | Florida | 5.7 |
| 15 | Maine | 5.5 |
| 16 | Rhode Island | 5.4 |
| 17 | New Jersey | 5.2 |
| 18 | New Hampshire | 5.1 |
| 19 | Vermont | 5 |
| 20 | New Mexico | 4.9 |
| 21 | Wyoming | 4.8 |
| 22 | North Carolina | 4.8 |
| 23 | Tennessee | 4.8 |
| 24 | Delaware | 4.6 |
| 25 | South Carolina | 4.5 |
| 26 | Virginia | 4.4 |
| 27 | Georgia | 4.4 |
| 28 | Maryland | 4.3 |
| 29 | Connecticut | 4.3 |
| 30 | South Dakota | 4.2 |
| 31 | Texas | 4.1 |
| 32 | Alaska | 4 |
| 33 | Wisconsin | 4 |
| 34 | Minnesota | 3.9 |
| 35 | Missouri | 3.7 |
| 36 | Alabama | 3.7 |
| 37 | Pennsylvania | 3.6 |
| 38 | Nebraska | 3.6 |
| 39 | Arkansas | 3.6 |
| 40 | Michigan | 3.5 |
| 41 | Indiana | 3.5 |
| 42 | Louisiana | 3.5 |
| 43 | North Dakota | 3.4 |
| 44 | Illinois | 3.3 |
| 45 | Ohio | 3.3 |
| 46 | Oklahoma | 3.3 |
| 47 | Kentucky | 3.3 |
| 48 | Mississippi | 3.3 |
| 49 | Kansas | 3.2 |
| 50 | Iowa | 3 |
| 51 | West Virginia | 2.9 |
Despite Hawaii and California ranking in the top five for median income (adjusted for cost of living), both states also consistently rank first and second respectively when it comes to median home prices.
Hawaii and California also rank second and third, respectively, when ranking states by the highest salary needed to live comfortably for a single working adult.
According to ATTOM, Hawaii has the highest median house prices in the U.S., at around $852,000.
The Aloha State’s limited land availability, strict housing regulations, and high demand for housing in a desirable climate, are some contributing factors to its high home prices.
Californian cities Los Angeles, San Jose, Long Beach, and San Diego are the top four large U.S. cities with the highest home price-to-income ratios.
Home prices in California have reached unprecedented highs due to a persistent imbalance between high demand and limited supply, which is exacerbated by strict zoning laws, geographic constraints, and a robust economy attracting high-income residents.
To learn more about housing affordability, check out this graphic that shows the top 10 global markets by median price-to-income ratio.
No, things are not more expensive then I state. The typical house is running between $300-330 / sqft and that’s stabilized since about late 2023. I literally check it daily. It’s an average. As employers pull their employees back into the hard offices the demand will drop. But the people who bought homes in the last four years will likely keep them; the rental market will just open up.
As far as “lots of high tech employers” that’s cute, but hilarious. Gianforte’s old company is a decent size but compared to the Santa Clara valley it’s lost in the haze. There are hundreds of companies like that here. BZN has one.
I worked for that company and Steve Daines was my last VP.
We have ALOT of tech here for a town of 50,000 vs your 2,000,000 population in the M-A area.
Your are the joker in this situation and THAT’s hilarious!
All the rich leftists moving there to devour it like locusts.
It does, sorry. I am just going off of the relentless increase in prices in the coastal regions, stories of crime and decline in quality of life notwithstanding. I don't disagree that people want to move to the conservative parts, but clearly, the home prices in the bluest regions keep going up, and have done so for more than a decade. Witness Seattle, Portland, Denver, and Boston.
Mining is cyclical with price as you know.
Butte still has mining, just not nearly as much as 50 years ago. Helena virtually none now. It’s just a government town.
https://westernmininghistory.com/towns/montana/helena/
https://www.mininghistoryassociation.org/ButteHistory.htm
Most of the old Union stalwart crap in MT came from Butte and Helena, and that’s where Tester and his ilk got their support. But the population that elected them literally died off or left. The newspapers there still use ‘60s unionist language, it’s comical to read. Like being in a time warp.
That’s why Sheehy was elected; Tester was literally a relic. The “new Democrats” are purple haired college students at MSU. They have nothing in common with old line Studs Terkel type miners union guys working the copper pits.
5.7 would mean the average house costs 5.7x the average annual income.
I’m happy you had a nice indoors job in Bozeman. Last job my father had in Bozeman was working as a cowhand for Malcolm Story. And my grandmother worked at the Jumping Horse and the 320. You drive by her house every time you go to the park. Bozeman had all of 5000 people then. Outdoor work was pretty much all there was.
Most of my relatives and close friends there have had to sell off their ranch lands to keep themselves afloat. Too old to change industries, and Angus cattle are not profitable unless you have like 30,000 acres. So they sell and move into town, or leave. Arizona is a popular destination and has been for a century. Don’t have to shovel sunshine as they say.
As for the per capita number of software employees between Bozeman and the Silicon valley, think it’s pretty lopsided in favor of the valley. But you go on dreamin’ your dream...it’s not a big deal. Think it’s better for Bozeman in the long run if it does become Silicon Mountain. But one thing about Californians moving there to do that...they last about 2 winters and then they start talking about moving South. Like St. George! Or...Or...Vegas!
Famous last words: “Didn’t know it got so cold here!”
I guess you had to be there.
I get that ; yes Florida and Texas are growing.
But we are here in Iowa as well.
We are of course way smaller , thankfully .
The Des Moines metro is seeing a lot of people moving in from other places .
No.
Sorry about the misspelling, my spell checker failed there.
I’m closer to Honokaa.
I sold my place in WA state, which was paid for and the profit from that sale got me 5 acres and a home with an ocean view here in Hawaii, although I’m 1,000 feet above sea level. Since the big island is subject to nearly every natural disaster known to man I researched my home choice carefully.
Aloha.
Everything we needed to know we learned on Saturday morning watching Bugs, Rocky and of course, Roadrunner and Wile E. Coyote!
I didn’t take Red Lodge as an example of real Montana but with just over a million in state population all those rich out of towners can really skew real estate.
I can’t say I’ve spent much time in White Sulpher Springs but I did enjoy The Greenbrier when I was there. It’s a stunningly beautiful area.
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