Someone worked out how much income you need in every state to buy a home. Hawaii didn't do well
HONOLULU (HawaiiNewsNow) - It will come as a surprise to no one that Hawaii's housing market is red hot.
But a new analysis helps put things in perspective. The simple question: How much income do you need to afford the average home in every state?
"How much," the website that creates visualizations about money and cost guides, crunched the numbers.
And Hawaii didn't fare well at all.
In fact, the site estimates that you need an income of $153,520 to afford the average home in Hawaii this year. (For two earners to bring in this income, they'd need to earn $76,760 each per year.)
That's the highest of any state, and compares to $120,120 in California (which took the no. 2 spot) and $101,320 in Massachusetts (which came in at no. 3).
The analysis was based on paying a 30-year mortgage with a 10 percent down payment.
And it determined the average cost of a home in Hawaii, based on Zillow listings, is $610,000.
Of course, homes are pricier on Oahu then they are on, say, the Big Island. The median cost of a single-family home on Oahu is about $770,000.
Still, the analysis offers a worthwhile snapshot, identifying states where buying a home is possible for middle-class Americans — or out of reach.
West Virginia was the state where you'd need the lowest income to afford a home, just $38,320 to buy the average home (at $149,500).
In Ohio, you'd need $38,400 to afford the average home ($160,000).
And in Michigan, you'd have to earn $40,800 to afford $161,000 for the average home.
"The best takeaway from our map is that housing remains affordable in large swaths of the country, even though there will always be places like California and New York where there is simply too much demand for the available inventory," the author of the analysis said. "Thankfully, that doesn't mean that buying a home is suddenly out of reach for average Americans in Ohio or Mississippi, for example."
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