United States • USD • Internal Revenue ServiceView GlobalWe use cookies and similar technologies to improve your experience, analyze traffic, and serve personalized ads. See our Privacy Policy.
Research Report
Last updated: June 2026 — 4 data sources
Housing costs vary more dramatically than any other expense category across US states. California leads with a housing cost index of 180 (80% above national average), followed by New York at 165 and Washington at 145. These states have seen significant home price appreciation driven by strong job markets, limited housing supply, and high demand.
The median home value in California is $750,000, requiring an annual income of approximately $150,000 to afford a median-priced home using the 28% rule. This creates significant affordability challenges even for households earning above-average salaries.
The home price-to-income ratio measures how many years of average salary are needed to buy a median-priced home. In California, this ratio exceeds 10x, meaning a household earning the average salary would need over 10 years of pre-tax income to purchase a median-priced home. In contrast, Ohio's ratio is approximately 3.6x.
This metric is crucial for understanding housing affordability. A high ratio indicates that homeownership is out of reach for many residents earning average wages, which can affect decisions about where to live and work.
Property taxes add a significant ongoing cost to homeownership. While California's effective property tax rate (0.71%) is relatively low due to Proposition 13, the high home values still result in substantial property tax bills. Texas has a much higher property tax rate (1.60%) but lower home prices ($310,000 median).
Our mortgage calculator accounts for property taxes when estimating monthly payments, providing a complete picture of housing affordability in each state.
States are ranked by housing cost index from the Council for Community and Economic Research Cost of Living Index and median home values from the Zillow Home Value Index. Additional context includes home price-to-income ratios, property tax rates, and estimated monthly mortgage payments (assuming 20% down, 30-year fixed at 6.5%).
California has the highest housing costs with a housing index of 180, median home value of $750,000, and home price-to-income ratio over 10x. New York (index 165) and Washington (index 145) are the next most expensive.
High housing costs consume a larger portion of household income, leaving less for savings, investments, and discretionary spending. In expensive states, even above-average salaries may not provide comfortable homeownership options. Our mortgage calculator helps evaluate affordability.
United States calculators use data from the following official government agencies:
Our calculators use tax brackets, contribution limits, and rates published by the relevant US government agencies. Salary data is sourced from Bureau of Labor Statistics (BLS) surveys. Mortgage rates reflect national averages and may vary by lender, location, and credit profile. All figures are for educational purposes and should be verified with a qualified professional.
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: July 2026 — Reviewed Against Official Sources
Stay Updated
Get monthly salary, tax & cost of living updates delivered to your inbox.