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The income needed to buy a home in every U.S. state

The income needed to buy a home in every U.S. state

What are America's Best Places to Work in 2025? and 12 more real estate insights

Vidit Saxena
June 03, 2025

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Latest Rates

Loan Type	Rate	Daily Change	Wkly Change	52-Wk Low/High
30 Yr. Fixed	6.96%	+0.01%	-0.06%	6.11 / 7.26
15 Yr. Fixed	6.23%	+0.02%	-0.07%	5.54 / 6.65
30 Yr. FHA	6.46%	+0.01%	-0.07%	5.65 / 6.65
30 Yr. Jumbo	7.05%	-0.01%	-0.08%	6.37 / 7.45
7/6 SOFR ARM	6.23%	+0.00%	-0.08%	5.95 / 7.28
30 Yr. VA	6.48%	+0.01%	-0.06%	5.66 / 6.66

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Real Estate Trends

Data center construction contributing one percentage point to GDP growth link

Data center construction added a full percentage point to U.S. GDP growth in Q1 2025. This is a major contribution from a single sector and signals long-term economic impact.
The report suggests this trend will continue to support U.S. growth for years to come. Rising demand for AI, cloud services, and digital infrastructure is driving the boom.
While the article doesn’t name specific cities, major data center hubs like Northern Virginia, Dallas, and Phoenix are likely key contributors. These areas have seen steady expansions in hyperscale and colocation facilities.

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Multifamily sentiment rebounds link

Investor confidence in multifamily is up, with 62% now viewing it as a top performer—up from 46% a year ago. The biggest shift came as new supply peaked in mid-2024 and began slowing, easing oversupply fears.
With mortgage rates still over 6%, homeowners aren’t selling—freezing the single-family market and driving more demand to rentals. March 2025 saw only 4.02 million existing home sales, the lowest in over 30 years.
Median home prices surged nearly 40% from April 2020 to October 2022, making homeownership out of reach in many cities. As affordability worsens and new single-family builds stall, multifamily demand continues to grow.

Home projects that add the most value link

Not all home upgrades offer a strong return on investment. Talking to a local real estate agent helps you focus only on high-impact improvements that are actually in demand in your market.
Projects that add real value vary by location and buyer preferences. What works in Richmond, VA may not be the best move in Phoenix or Minneapolis.
Before spending on renovations, it’s smart to evaluate cost vs. resale impact. Some improvements won’t increase home value enough to justify the spend.

AI and Real Estate

Will someone buy a house from an AI real estate agent? link

AI tools like those from Homa may appeal to only a small segment of experienced buyers—similar to the 6% market share that for-sale-by-owner (FSBO) transactions held last year. Most buyers still want a human guide for one of life’s biggest decisions.
Core tasks like showings, offer writing, and negotiation require human nuance that AI still lacks. Buyers without agents must compete with pros who do this daily, leaving them at a clear disadvantage.
The article argues AI won’t replace agents, but agents who use AI will replace those who don’t. Homa’s real opportunity might be selling to agents, not replacing them.

A Couple of AI Tools in Real Estate

Stand

Stand Insurance offers homeowners insurance that insures and fortifies properties to be resilient to wildfire, flood, and wind. It uses physics-driven AI to model and mitigate risk, and has raised $30M in funding from top-tier investors.

Collov.ai

Collov is an AI-powered interior design platform that enables users to create personalized room designs and visualize spaces in 3D. It offers virtual staging, design recommendations, and product sourcing to streamline the interior design and furnishing process.

One Chart

Mapped: The income needed to buy a home in every U.S. state

In 2025, homebuyers need six-figure salaries in 35 states to afford a median-priced home. Hawaii tops the list at $229,000 in required income, followed by Massachusetts, California, New York, and Montana.
The median price of a new single-family home nationwide is $495,750, but nearly 50% of U.S. households can’t afford a $250,000 home. This shows a major gap between incomes and home prices.
Some states still offer relative affordability—West Virginia, Mississippi, Ohio, and Indiana all require under $85,000 in annual income. In West Virginia, the needed income is $71,000, well below the state’s $90,000 median household income.

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Pro Member Only Content Below

Most of the insights below stem from extra research and include content from paid sources and special reports.

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