The state of California is the most expensive state in the United States to buy a home, surpassed only by Hawaii, according to a new report from GOBankingRates.
The financial website published an analysis describing the minimum salary required in each state to buy a home without complications, based on the average cost of a home in that state and a 20% down payment and a 30-year monthly mortgage payment at an interest rate of 6.82%.
The analysis shows that an individual needs much more than a good annual income to think about buying their own home. The minimum salary of 7.25 dollars is not even enough to pay the rent, recalls an article by La Opinión.
The GOBankingRates ranking finds that California, the state with the largest Latino population in the U.S., is the second most expensive state in the country to become a homeowner, with the median cost of a single-family home in 2024 estimated at about $967,270.
The "annual minimum wage necessary to afford a home without suffering" in the Golden State in June 2024 was $202,200, according to the report. This figure was based on an initial payment of about 20% of the total cost, which amounted to $193,454, and a monthly mortgage of $5,055.
The National Association of Hispanic Real Estate Professionals (NAHREP), which has been tracking Latino homeownership rates since the turn of the century, highlighted in a recent report that while the Hispanic community continued to grow in homeownership in 2023, more and more families are moving from high-cost areas like California and Florida to more affordable states like Colorado, Texas, the Carolinas, and others.
For example, the average home in Florida is $409,179, and a minimum annual salary to afford one, according to the document, is estimated at $85,535.76, considering an initial payment of $81,835.74 and a monthly mortgage of $2,138.39.
Top 5 most expensive states to buy a home in the U.S.
1. Hawái
- Median home price in 2024: $967,270
- Minimum salary needed to pay for a house without suffering: $202,200.59
- Down payment (20%): $193,454.00
- Monthly mortgage: $5,055.01
2. California
- Median home price in 2024: $785,333 dollars
- Minimum salary needed to afford a home without suffering: $164,168.07
- Down payment (20%): $157,066.65
- Monthly mortgage: $4,104.20
3. District of Columbia (DC)
- Median home price in 2024: $718,017
- Minimum salary needed to afford a home without suffering: $150,096.08
- Down payment (20%): $143,603.38
- Monthly mortgage: $3,752.40
4. Massachusetts
- Median home price in 2024: $615,963
- Minimum salary needed to afford a home without suffering: $128,762.39
- Down payment (20%): $123,192.52
- Monthly mortgage: $3,219.06
5. Washington
- Median home price in 2024: $589,240
- Minimum salary needed to afford a home without suffering: $123,176.22
- Down payment (20%): $117,847.99
- Monthly mortgage: $3,079.41
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