Housing Affordability · United States · Updated May 2026

Most affordable US states — price-to-income ratio

Q: What is the most affordable state to buy a home?

West Virginia is the most affordable state to buy a home with a price-to-income ratio of 2.7×. This means the median home costs 2.7 times the median household income — significantly below the national median of 3.9×. Other affordable states include Iowa, Kansas, Indiana.

Q: Which states are most affordable for first-time homebuyers?

The most affordable states for first-time homebuyers based on price-to-income ratio are West Virginia (2.7×), Iowa (2.8×), Kansas (2.9×), Indiana (3×), Mississippi (3×). These states have median home prices that are significantly lower relative to local household incomes, making conventional mortgages more accessible without outside assistance.

Q: What is a good price-to-income ratio when buying a home?

A price-to-income ratio below 3× is generally considered affordable — the home costs less than three times annual household income. Between 3× and 5× indicates a strained market. The national median is 3.9×. Above 5× represents a severe affordability crisis where homeownership is out of reach for median-income earners without significant outside help.

Q: Are Midwestern states the most affordable in the US?

Yes, Midwestern states consistently rank as the most affordable for homeownership. States like Iowa, Kansas, Indiana, and Ohio have maintained low price-to-income ratios because home prices have not risen as sharply as in coastal and Sun Belt markets, while incomes have kept relatively closer pace. Lower population density and slower in-migration keep housing demand — and thus prices — more moderate.

The price-to-income ratio divides median home value by median household income. A lower ratio means more affordable. West Virginia leads with 2.7×, meaning a typical home costs 2.7 years of household income. Data: ACS 5-Year 2024.

The national median price-to-income ratio is 3.9×. Any state below this level offers relatively better value for homebuyers. Any state above it means residents are spending a larger share of income to achieve homeownership compared to the typical American.

These rankings use the 2024 American Community Survey 5-Year Estimates, covering the period 2020–2024. Median home value and median household income are measured at the state level. The ratio is computed as median home value ÷ median household income.

All 50 states + DC ranked

Most affordable states — complete ranking

The most affordable states are concentrated in the Midwest and South — regions where home prices have historically tracked closer to local incomes. Iowa (2.8×), Kansas (2.9×), Indiana (3×) all rank in the top tier. Western states dominate the bottom of the affordability table, with Hawaii (8.4×), California (7.4×), Oregon (5.8×) among the least affordable.

A ratio below 3× is generally considered affordable by housing economists. Between 3× and 5× indicates a strained market. Above 5× — the level seen in Hawaii, California, and Massachusetts — represents a severe affordability crisis where homeownership is effectively out of reach for median-income households without substantial outside assistance.

State Ratio Median Price Median Income

1 West Virginia 2.7× $162,600 $59,608 2 Iowa 2.8× $208,000 $75,059 3 Kansas 2.9× $217,200 $74,275 4 Indiana 3× $218,200 $71,957 5 Mississippi 3× $169,800 $56,447 6 Ohio 3× $214,800 $71,389 7 Nebraska 3.1× $238,600 $76,475 8 Oklahoma 3.1× $199,800 $65,039 9 Arkansas 3.1× $188,000 $60,773 10 Illinois 3.2× $263,300 $83,390 11 Kentucky 3.2× $205,600 $63,726 12 Michigan 3.2× $231,600 $72,875 13 Missouri 3.3× $230,300 $70,702 14 North Dakota 3.3× $249,900 $76,657 15 Pennsylvania 3.3× $254,500 $77,971 16 Alabama 3.3× $209,900 $63,999 17 South Dakota 3.4× $257,400 $75,081 18 Wisconsin 3.4× $266,500 $77,485 19 Louisiana 3.6× $216,500 $60,756 20 Texas 3.6× $283,800 $78,476 21 Minnesota 3.7× $329,300 $89,062 22 South Carolina 3.7× $259,000 $69,324 23 Alaska 3.8× $352,900 $92,788 24 Connecticut 3.8× $366,900 $95,781 25 Georgia 3.9× $303,300 $77,353 26 New Mexico 3.9× $248,100 $64,059 27 Vermont 3.9× $316,600 $81,203 28 Maine 4× $296,600 $74,733 29 North Carolina 4× $288,900 $72,388 30 Delaware 4.1× $352,000 $84,954 31 Maryland 4.1× $419,900 $103,678 32 New Hampshire 4.1× $402,500 $99,031 33 Tennessee 4.1× $286,700 $69,595 34 Virginia 4.1× $383,700 $93,170 35 Wyoming 4.1× $309,700 $76,176 36 New Jersey 4.4× $454,400 $103,556 37 Rhode Island 4.6× $404,200 $87,796 38 Florida 4.8× $359,000 $74,568 39 New York 4.9× $423,800 $85,974 40 Arizona 4.9× $394,500 $79,964 41 Utah 5.1× $489,400 $95,166 42 Montana 5.2× $375,800 $72,509 43 Idaho 5.4× $418,600 $77,800 44 Massachusetts 5.4× $562,100 $103,960 45 Nevada 5.6× $435,400 $78,260 46 Colorado 5.6× $539,400 $95,470 47 Oregon 5.8× $477,600 $83,011 48 Washington 5.8× $564,600 $98,141 49 District of Columbia 6.7× $737,100 $109,870 50 California 7.4× $734,700 $99,122 51 Hawaii 8.4× $839,100 $100,389

Methodology

How the price-to-income ratio is calculated

The price-to-income ratio is calculated by dividing the median home value by the median household income for each state. Both figures come from the US Census Bureau's American Community Survey (ACS) 5-Year Estimates, 2024 release (covering survey years 2020–2024).

This ratio is a widely-used affordability benchmark. It measures how many years of the typical household's gross income would be required to purchase the typical home in that state. A ratio of 3× means a home costs three times annual household income — a level historically associated with affordable housing markets. The rule of thumb that a home should cost no more than 3× annual income originates from conventional mortgage underwriting standards.

Limitations: the ratio uses state-level medians, which can mask significant variation within states. A state like California has affordable inland counties alongside severely unaffordable coastal metros. For county-level data, use the interactive map.

Data source: US Census Bureau, American Community Survey 5-Year Estimates (2024). Supplemented with FHFA House Price Index for county-level trend data.

Common questions

FAQ — most affordable states

What is the most affordable state to buy a home?

West Virginia is the most affordable state with a price-to-income ratio of 2.7×. Other top affordable states include Iowa (2.8×), Kansas (2.9×), Indiana (3×).

Which states are most affordable for first-time homebuyers?

The most accessible states for first-time buyers are West Virginia, Iowa, Kansas, Indiana, Mississippi — all with ratios well below the national median of 3.9×. These markets offer conventional mortgages at income multiples that fit standard lending thresholds.

What is a good price-to-income ratio when buying a home?

Below 3× is considered affordable. Between 3–5× is strained. Above 5× is a severe affordability crisis. The national median is 3.9×.

Are Midwestern states the most affordable in the US?

Yes. Iowa, Kansas, Indiana, and Ohio consistently rank among the most affordable because home prices have not risen as sharply as coastal or Sun Belt markets, while local incomes have kept closer pace. Lower population density and slower in-migration moderate demand.

Related housing rankings

Open interactive map