Mapped: Where Americans Can Still Afford Their First Home
Summary
Many Americans cannot afford to buy their first home because home prices have grown much faster than incomes. A study by LendingTree found that only about 38% of first-time buyers in the U.S. can afford a starter home in their state, with big differences between states.Key Facts
- Over 62% of nonhomeowners in the U.S. cannot afford to buy a starter home.
- The average starter home costs about $200,000 nationwide.
- The median income for nonhomeowners is $7,099 less than the $62,099 needed to buy a starter home.
- States in the South, like Mississippi and West Virginia, have the highest affordability, with over 50% of nonhomeowners able to buy a starter home.
- The Northeast and West, especially Rhode Island and California, are the least affordable areas for first-time buyers.
- In Rhode Island, only 16.5% can afford a starter home priced around $350,000.
- In California, the average starter home costs $482,000, and only 21.3% of nonhomeowners can afford one.
- Rising home prices and slow wage growth make it harder for people to buy homes and build wealth.
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