A new study has revealed the most affordable US states to save for a house deposit – with Michigan ranking in the top ten.
The study, conducted by real estate experts Agent Advice, evaluated median household incomes and the typical house values across the US, revealing the states with the best income-to-house price ratio – unveiling the most affordable areas for aspiring homeowners.
Topping the list is West Virginia, revealing it as the most financially feasible state for those looking to save for a deposit quickly. Despite its median household income of $54,329 falling below the national average of $74,580, West Virginia offers ample opportunity for potential buyers to save efficiently, thanks to significantly lower house prices than other states.
With a typical home value of $154,371, West Virginia’s housing market stands out with an impressive 55% reduction from the national average of $342,685. In fact, it boasts the lowest typical house price in the entire US, surpassing even the second-lowest state’s housing cost by $18,594. West Virginia’s significantly lower home prices, aesthetic scenery, and affordable cost of living make it an ideal location for aspiring homeowners, boasting an income-to-house cost ratio of 2.84.
Next is Iowa, securing the second spot on the list. With a median household income of $69,588 and a typical home value of $205,375, Iowa’s income-price ratio comes in at 2.95. Offering higher salary opportunities compared to West Virginia, Iowa maintains affordability with the seventh lowest typical house costs in the US – making it a great place to save for a home efficiently.
Kansas secures the third spot, with a median household income of $68,925 and a typical home value of $212,995, giving it a ratio of 3.09 and ranking closely behind Iowa. The state’s ranking of seventh lowest house prices, combined with its beautiful landscapes and friendly communities, allow Kansas to offer a high quality of life at an affordable price.
Illinois ranked fourth, with a ratio of 3.23. The state has a median household income of $76,708, which pays $2,128 more than the national average. Additionally, the state has a typical home value of $247,948, which is 28% less than the national average, making Illinois an ideal choice for individuals seeking both higher earning opportunities and affordable living.
Ohio placed fifth, ranking closely behind Illinois with a ratio of 3.24. The state boasts a slightly lower median household income of $65,720 and a typical home value of $213,149. Notably, Ohio ranks as the ninth most affordable state for housing prices in the US, solidifying its position as another attractive and budget-friendly option for prospective residents.
Ranking eighth most affordable on the list is Michigan.
Michigan has an average income of $66,986 and a typical home costs $228,329, revealing its properties as the tenth most affordable in the US. That puts the income-to-house cost ratio at 3.41.
On the other end of the scale, the study revealed the least affordable states to save for a house deposit, revealing Hawaii as the place to avoid.
While Hawaii’s median household income stands at a massive $92,458, the typical home value is a staggering $831,808 – by far the highest in the US. This significant disparity results in a high ratio of 9.0, making Hawaii the least favorable state for those hoping to save.
Following closely behind is California, infamous for its high cost of living. With a median household income of $91,551 and a typical home value of $743,435, the state exhibits a ratio of 8.12. This disparity adds to prospective homebuyers’ challenges in California’s competitive real estate market.
