The 15 States Where Homeownership Isn’t Just a Six-Figure Fantasy

A trailblazing report from Realtor.com shows that in nearly half of the U.S., the average four-person family doesn’t earn enough to afford monthly mortgage payments on a median-priced three-bedroom property. The state-by-state affordability analysis revealed that in 35 of the 50 states, including Washington D.C., a family of four "needs to pull in six figures to buy a home." However, in 15 states, homeownership is still relatively affordable despite the current economic climate. Here are the highlights.

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15 states where you don’t need to make six figures:

Homebuying affordability is strongest in the Midwest—with nearly all states in the region having a recommended median income under $85K, with Minnesota ($110K) and Wisconsin ($109K) being the two main outliers.

Per the report, median four-person family incomes are between 49.8 percent and 51.9 percent higher than the minimum recommended income to buy a home in Illinois, Michigan, and Ohio.

Properties in the South are also relatively affordable, compared to those on the West Coast and in the Northeast. A handful of states don’t require a six-figure salary minimum, excluding South Carolina, Georgia, and Florida.

Perspective buyers who make less than six figures can afford a home in 15 states in the U.S., which is approximately 30 percent of the nation. States on this list include:

• Alabama ($93K)
• Arkansas ($83K)
• Illinois ($83K)
• Indiana ($80K)
• Iowa ($81K)
• Kansas ($81K)
• Kentucky ($86K)
• Louisiana ($79K)
• Michigan ($76K)
• Mississippi ($83K)
• Missouri ($83K)
• Ohio ($75K)
• Oklahoma ($85K)
• Pennsylvania ($85K)
• West Virginia ($71K)

"Affordable housing in these states means that families can spend a bit more on other necessities or can save more, taking some pressure off the all-too-familiar budget dance," said Realtor.com senior economic research analyst Hannah Jones.

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The top 10 most expensive states to buy a home:

Hawaii, Massachusetts, and California are ranked the top three least affordable states to buy a four-person home; in all three states, it’s suggested that your family’s combined income exceeds $200K.

But as Realtor.com points out, most residents make well below the recommended amount. For instance, the median income in California for a four-person household is 38.7 percent lower than what’s deemed necessary.

"These figures factor in a rate of 6.65 percent on a 30-year fixed mortgage, property taxes, and insurance, and assume a 10 percent down payment. It's important to note that homeowners who spend more than 30 percent of their gross income on housing are typically considered cost-burdened," says the report.

That said, here are the top 10 most expensive states to buy a home:

• California ($210K)
• Hawaii ($229K)
• Idaho ($163K)
• Massachusetts ($216K)
• Montana ($177K)
• Nevada ($140K)
• New Mexico ($112K)
• New York ($190K)
• Oregon ($158K)
• Utah ($169K)

"Hawaii and California are among the nation's most expensive states. Even though the typical four-person family income in these states is relatively high, it pales in comparison to home prices," said Jones in the report.

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Each state’s median household income recommended for purchasing property:

1. Alabama: $92,583
2. Alaska: $121,585
3. Arizona: $140,578
4. Arkansas: $83,440
5. California: $209,643
6. Colorado: $161,002
7. Connecticut: $143,729
8. Delaware: $137,986
9. Florida: $125,182
10. Georgia: $109,354
11. Hawaii: $229,341
12. Idaho: $163,153
13. Illinois: $83,440
14. Indiana: $80,418
15. Iowa: $80,562
16. Kansas: $80,662
17. Kentucky: $86,044
18. Louisiana: $79,138
19. Maine: $129,340
20. Maryland: $117,505
21. Massachusetts: $215,816
22. Michigan: $76,361
23. Minnesota: $109,627
24. Mississippi: $83,426
25. Missouri: $83,167
26. Montana: $176,513
27. Nebraska: $99,836
28. Nevada: 139,742
29. New Hampshire: $165,456
30. New Jersey: $156,822
31. New Mexico: $112,146
32. New York: $189,923
33. North Carolina: $114,951
34. North Dakota: $104,555
35. Ohio: $74,663
36. Oklahoma: $84,892
37. Oregon: $158,276
38. Pennsylvania: $85,397
39. Rhode Island: $151,067
40. South Carolina: $101,426
41. South Dakota: $107,196
42. Tennessee: $120,855
43. Texas: $102,160
44. Utah: $168,693
45. Vermont: $143,168
46. Virginia: $121,534
47. Washington: $174,700
48. West Virginia: $71,080
49. Wisconsin: $109,196
50. Wyoming: $132,297