Best States for Home Affordability (2025-2026)
Home affordability varies dramatically across the United States. This ranking compares states by the ratio of median home values to average salaries, along with property tax rates and mortgage affordability. Whether you are a first-time homebuyer or looking to relocate, understanding which states offer the best value for your housing dollar is essential for making informed decisions.
Key Takeaways
- The most affordable states have home price-to-income ratios below 4x, compared to over 10x in expensive states.
- Midwestern and Southern states dominate home affordability rankings.
- Property tax rates can significantly impact monthly costs even when home prices are low.
- Use our mortgage calculator to estimate monthly payments, including property taxes and insurance.
| Rank | State | Home Price-to-Income Ratio |
|---|---|---|
| 1 | Ohio | 4x income ratio |
| 2 | Illinois | 4x income ratio |
| 3 | Michigan | 4x income ratio |
| 4 | Pennsylvania | 4x income ratio |
| 5 | Texas | 5x income ratio |
| 6 | North Carolina | 5x income ratio |
| 7 | New York | 5x income ratio |
| 8 | Georgia | 6x income ratio |
| 9 | Florida | 7x income ratio |
| 10 | Washington | 7x income ratio |
Key Insights
- Ohio offers the most affordable housing with a median home value of $200,000 and an average salary of $55,000.
- Midwestern states consistently offer the best home affordability.
- Property tax rates vary significantly and can offset lower home prices.
- Coastal states like California have home prices far exceeding local incomes.
Methodology
States are ranked by home price-to-income ratio (median home value divided by average annual salary). Lower ratios indicate better affordability. Additional context includes effective property tax rates, mortgage payment estimates (assuming 20% down, 30-year fixed at 6.5%), and cost of living indices. Data sources: Zillow Home Value Index, Bureau of Labor Statistics, US Census Bureau.
FAQ
Which state has the most affordable housing?
Ohio offers the most affordable housing with a median home value of $200,000 and an average salary of $55,000, giving a home price-to-income ratio of approximately 3.6x. Other affordable states include Michigan, Pennsylvania, and Illinois.
How is home affordability measured?
We measure affordability using the home price-to-income ratio (median home value divided by average annual salary). A lower ratio means homes are more affordable relative to local incomes. We also consider property tax rates and estimated monthly mortgage payments.
Does a low home price mean a state is affordable?
Not necessarily. While low home prices help, you must also consider property tax rates, insurance costs, and your income. A state with low home prices but high property taxes may have similar monthly costs to a state with moderate prices and low taxes. Use our mortgage calculator for a complete picture.
Related Resources
Official Sources
Australia calculators use data from the following official government agencies:
- Australian Taxation Office (ATO) — Income tax rates, Medicare levy, and superannuation contribution limits.
- Australian Bureau of Statistics (ABS) — Wage data, employment statistics, and cost of living indices.
- Reserve Bank of Australia (RBA) — Cash rate, inflation targets, and monetary policy data.
Methodology
Our Australian calculators follow tax rates, thresholds, and superannuation rules published by the Australian Taxation Office (ATO). Wage and economic data is sourced from the Australian Bureau of Statistics (ABS). Mortgage rates reflect RBA cash rate influences and market averages. All figures are for educational purposes.
Data Sources
All tax brackets, contribution rates, and economic data used in our calculators are sourced from the official government publications listed above. Rates are updated at least annually to reflect the latest tax year and regulatory changes. Users should verify critical figures with official sources or qualified professionals.
Last updated: June 2026. Information may change; always verify with official sources.
Last Updated: June 2026 — Reviewed Against Official Sources