Home prices are rising faster than wages

Table Of Content

• United States Median Home Price History
• Typical home price in Oklahoma: $194,731 (57% of typical U.S. price)
• Hidden Housing Gems
• Typical home price in Connecticut: $373,529 (109% of typical U.S. price)
• Typical home price in Alaska: $348,048 (102% of typical U.S. price)
• Typical home price in Minnesota: $317,275 (93% of typical U.S. price)

This cost includes the down payment, closing costs, and the first monthly payment. We’ve included a national average in the data as a baseline, but these costs often depend on the city and region. For example, Baltimore, Maryland and Phoenix are just $74 apart in the first month’s costs—not that different—but Baltimore residents pay $9,119 more in closing costs, on average. To get a sense of how house prices vary by state, we combed through Redfin’s monthly housing market data as of November 2023. That may also mean the cost of buying a home is at a historic high, although property buyers in the 1980s dealt with mortgage rates that were significantly higher than today's loans.

United States Median Home Price History

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There is quite a lot of diversity in the cost of housing across the country, and the potential homebuyer stands to save a lot of money if they choose their location wisely. Ohio is the ninth most affordable state for buying a house in the United States. The typical house in Ohio costs $213,360, which is 66% of the typical nationwide price.

Typical home price in Oklahoma: $194,731 (57% of typical U.S. price)

However, the high-paying jobs and the high demand for housing have pushed the price of houses skyward. Buying a house is a big milestone for many people in the United States. Whether it’s a first house, an investment property, or a place to retire to, a home purchase is one of the largest buying decisions many people make. There are few purchases that involve as much money, and the price of houses is constantly changing.

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Hidden Housing Gems

In Idaho, the average house price is $359,546—a massive 20.9 percent increase over the past year. According to Rocket Homes, it’s because people want to ditch the city life and move to more affordable (and less crowded) areas in the Midwest. Boise, in particular, has seen an incredible boom—the average house price in the city is $437,814, which has gone up 28 percent since last year. No wonder why it’s become one of the hottest housing markets in the United States.

The laws in the United States of America do not restrict an individual of any foreign citizenship from owning a house in the U.S. However, the main concern one may have is that buying a home may be a daunting process, but it is a huge part of the American Dream. Adrian Nesta is a Senior Data Reporter on the Data Journalism team at Dotdash, the digital publisher that owns and operates The Balance.

How has the coronavirus (COVID- pandemic affected Americans’ homeownership plans?

Located in the far northeast of the country, Maine has a typical house price that is just over the typical price across the USA. But buying a house in Maine is anything but typical for any student with school loans to pay off. This number changes slightly on a yearly basis, but the only requirement is having lived in the state for at least a year and the intention of remaining a resident indefinitely. With typical house prices below the typical price in the country, this helps to make Alaska an attractive possibility. The average mortgage payment on a house in Utah is 42.9% of the median income in the state. The average mortgage payment on a house in Colorado is 45% of the median income in the state, and Coloradans have a median income that is 22% higher than the national median.

Typical home price in Alaska: $348,048 (102% of typical U.S. price)

‘The average rate on a 30-year mortgage rose to 7.17% from 7.1% last week, mortgage buyer Freddie Mac said Thursday. "A hefty insurance bill isn't always a big deal for a luxury buyer, but it can be a really big issue for someone buying a waterfront home on a smaller budget." Instead, buyers are now finding themselves priced out, and price growth has slid as a result. Of the country's 10 metros where sellers are most likely to slash listed prices, seven are in these two states.

Tucked in the far northwest corner of the United States, Washington has the third most expensive housing market in the country. At number six on this list of states with inexpensive housing is Kentucky. The typical house in Kentucky costs only 46% of the national median for house prices, and the average mortgage payment in the state is 21% of the median income in Kentucky. Another benefit of owning a home in Kentucky is its low property tax. The state with the least expensive housing market had a median price of $229,000 in September, according to Redfin’s monthly housing data. Redfin’s data covers all home types, including single-family houses, condos and townhomes.

Typical home price in Kansas: $212,952 (62% of typical U.S. price)

The ZHVI isn't an average, but it represents the typical home value in a given area. In the United States as a whole, the average ZHVI over the fourth quarter of 2023 was $341,825. Between 1980 and 2020, the median home sales price increased by 416%. From 1980 to the third quarter of 2023, home sales prices rose 576%. The median home sales price is $417,700 as of the fourth quarter of 2023. That's a 37% increase from the first quarter of 2020, when the median was $329,000.

Sales of previously occupied US homes fell last month as home buyers contended with elevated mortgage rates and rising prices. The gap that has jumped open between these two lines has created a nationwide lock-in effect — paralyzing people in homes they may wish to leave — on a scale not seen in decades. For homeowners not looking to move anytime soon, the low rates they secured during the pandemic will benefit them for years to come. But for many others, those rates have become a complication, disrupting both household decisions and the housing market as a whole. The median income in Louisiana is 25% below the national median, and the typical price of a house in the state is 50% of the typical price across the country. That balances out to make homeownership more affordable in Louisiana than most other states.

The average hourly wage of a construction worker in Louisiana was about $19 in 2022, according to the U.S. By comparison, construction workers in Hawaii, the top-paying state, earned about $32 per hour. These five states have the lowest median home prices in the country. Here you’ll find the average price of a home runs $113,578, which has increased 5.2 percent over the last year.

Of course, you get what you pay for, and to many, a Pacific coast getaway or desert retreat is worth the price. Remember, though, that this state is massive, and while you probably won’t find a bargain in, say, Malibu, the California housing market has plenty of budget-friendly options too, particularly inland. The real estate market also continues to stay pretty competitive, too. Buying a house is costlier than anytime in at least the last decade, with property buyers hit with the double whammy of rising mortgage rates and home prices, according to real estate company Redfin. The price of a typical home in Tennessee is $304,617, 89% of the typical U.S. home value.

With an average house price of $180,661, the state has plenty to offer—most famously, New Orleans. Just know that the vibrant city has the highest home prices in Louisiana. The average home price in Illinois is $223,455, which has gone up 7.1 percent over the past year. The average house price in Chicago is $285,579, whereas a home in Clarendon Hills is going for $508,973 on average. If you’re thinking about a move to the Windy City, act fast—the market in the Chicago area is hot right now. Home to Hotlanta, the average house price for the state is $228,599—a 9.9 percent increase from last year.

A typical home in New Jersey costs $480,275 in 2022, which is 114% of the national median price for a house. New Jersey is a mid-atlantic state in the Northeastern US with a population of about 9.2 million, making it the 11st most populous state in the US. It’s got some of the most beaches in the country, warm weather all year in some regions, a high-paying job market, and iconic cities like San Fransisco and Los Angeles.