Average House Price by State in 2020

[ad_1]

The average house price has been rising rapidly nationwide. According to the Federal Reserve Bank of St. Louis, the median home sales price is $374,900. That’s an increase of over $50,000 from just a year ago.

Why the fast rise? Look no further than the COVID-19 pandemic.

Mortgage rates fell significantly in 2020, driving up demand as homebuyers looked to take advantage. The pandemic also led to consumers shifting spending to housing and pushed more millennials toward homeownership.

At the same time, homeowners have been reluctant to list their homes and there’s a housing production shortfall. For those reasons, the housing supply has dwindled. In December 2020, the National Association of Realtors reported a record low with just a 1.9-month supply of homes.

This has resulted in one of the biggest seller’s markets in history. Now, let’s take a deeper dive into what housing prices are like across the country.

Key findings

  • The median home price in the United States is $374,900 as of the second quarter of 2021.
  • Home prices increased by 16.2% from 2020 to 2021.
  • The median home price increased by 416% from 1980 to 2020.
  • The Zillow Home Value Index puts the typical home price in the United States at $293,349.
  • Mortgage payments on a typically priced home equal 29.5% of the U.S. median income.
  • Hawaii is the most difficult state to buy a home, based on Zillow’s data. The average mortgage payment is 57.9% of the state’s median income.
  • West Virginia has the cheapest home prices according to Zillow at 40% of the typical U.S. price. Mortgage payments there take up 16.1% of the state’s median income on average, the lowest rate in the nation.

Average home price in the United States: $374,900

The median home sales price is $374,900 as of the second quarter of 2021. That’s a 16.2% increase from a year ago, when the median was $322,600.

Here’s a look at how the median and mean home prices have changed over the last 40 years (prices are for January 1 of each year listed):

Data source: Federal Reserve Bank of St. Louis (2021).

Home prices tend to rise over time with the occasional outlier. In recent history, that outlier was the Great Recession, which caused both median and mean home prices to drop.

Overall, median and mean home prices have made similar gains. During the last 40 years, the median home price has increased by 416% and the mean has increased by 420%.

That data doesn’t give us a full picture of home prices around the United States. There’s no state-level data available for it, and it’s only sales prices, so it’s not the only way to capture home values. That’s why we’re also including Zillow’s information on home prices.

Typical home price in the United States: $293,349

The Zillow Home Value Index (ZHVI) isn’t an average, but it represents the typical home value in a given area. In the United States as a whole, the ZHVI is $293,349.

How affordable is that? Based on that typical home price and the U.S. median income of $65,712, mortgages take up 29.5% of a homeowner’s income on average.

That doesn’t quite pass the 28% rule, which says that your mortgage payment should be no more than 28% of your pre-tax income.

Housing costs and income vary quite a bit in each state. Here are the typical home prices in all 50 states, the typical value of a single-family home, and the average mortgage rate as of early August 2021. In addition, we’ve calculated how much an average mortgage payment in each state would cost in comparison to its median income.

READ:  Sarah Li Cain - All Articles for The Ascent

See how the states compare in the table below, then get details on each state by reading on:

Data source: Zillow (2021).

Typical home price in Alabama: $170,184 (58% of typical U.S. price)

  • Typical single-family home value in 2021: $169,457
  • Average mortgage rate, July 2021: 3.054%
  • Average mortgage payment to median income: 21.7%

While Alabama has a low median income (21% below the national median), its typical house prices are even lower. Because of that, residents don’t pay too much for their mortgages.

Typical home price in Alaska: $300,592 (102% of typical U.S. price)

  • Typical single-family home value in 2021: $314,025
  • Average mortgage rate, July 2021: 2.977%
  • Average mortgage payment to median income: 26.2%

The typical house price in Alaska is a little higher than it is nationwide, but that’s balanced out by a median income 15% higher than the U.S. median.

Typical home price in Arizona: $355,540 (121% of typical U.S. price)

  • Typical single-family home value in 2021: $362,766
  • Average mortgage rate, July 2021: 3.118%
  • Average mortgage payment to median income: 38.1%

Mortgage payments take up a big chunk of homeowner’s budgets in Arizona. That’s due to a combination of high housing costs and a median income 6% below the national median.

Typical home price in Arkansas: $149,120 (51% of typical U.S. price)

  • Typical single-family home value in 2021: $148,708
  • Average mortgage rate, July 2021: 3.037%
  • Average mortgage payment to median income: 20.1%

It isn’t too expensive to own a home in Arkansas. The typical cost is barely over half the typical U.S. price, which makes up for a median income 26% below the norm.

Typical home price in California: $683,996 (233% of typical U.S. price)

  • Typical single-family home value in 2021: $698,587
  • Average mortgage rate, July 2021: 3.043%
  • Average mortgage payment to median income: 56.2%

Californians probably aren’t surprised to see that it’s one of the hardest places to afford a home. Even though the median income is 22% higher than the U.S. median, extremely high prices put housing out of reach for many residents.

Typical home price in Colorado: $490,944 (167% of typical U.S. price)

  • Typical single-family home value in 2021: $503,280
  • Average mortgage rate, July 2021: 3.002%
  • Average mortgage payment to median income: 41.9%

A high median income (17% above the national median) isn’t enough to make up for Colorado’s housing prices. Homeowners have an average mortgage payment over 40% of their median income.

Typical home price in Connecticut: $318,096 (108% of typical U.S. price)

  • Typical single-family home value in 2021: $337,603
  • Average mortgage rate, July 2021: 3.080%
  • Average mortgage payment to median income: 26.8%

While homes in Connecticut cost more than the typical price across the country, high salaries make up for those housing costs. The median income beats the U.S. median by 20%.

Typical home price in Delaware: $308,067 (105% of typical U.S. price)

  • Typical single-family home value in 2021: $308,138
  • Average mortgage rate, July 2021: 3.093%
  • Average mortgage payment to median income: 29.1%

Delaware’s numbers are fairly similar to the country as a whole. Housing prices are a bit higher, and so’s the median income (7% over the national median). The mortgage-payment-to-median-income ratio is slightly less than the national average.

Typical home price in Florida: $297,390 (101% of typical U.S. price)

  • Typical single-family home value in 2021: $311,789
  • Average mortgage rate, July 2021: 3.111%
  • Average mortgage payment to median income: 33.4%

Florida homeowners spend about a third of their median income on their mortgages. It’s a somewhat high figure caused by a median income 10% below the national median.

Typical home price in Georgia: $245,778 (84% of typical U.S. price)

  • Typical single-family home value in 2021: $246,272
  • Average mortgage rate, July 2021: 3.064%
  • Average mortgage payment to median income: 26.2%

Lower average house prices in Georgia make it a budget-friendly place to own a home, even though the median income comes in 6% below the rest of the country.

Typical home price in Hawaii: $730,511 (249% of typical U.S. price)

  • Typical single-family home value in 2021: $834,978
  • Average mortgage rate, July 2021: 2.997%
  • Average mortgage payment to median income: 57.9%

Hawaii takes the top spot as the most difficult place to afford a home. The median income may be 26% more than the U.S. median, but it’s not enough to balance out staggering home prices.

Typical home price in Idaho: $403,291 (137% of typical U.S. price)

  • Typical single-family home value in 2021: $404,858
  • Average mortgage rate, July 2021: 2.993%
  • Average mortgage payment to median income: 43.5%

Even with cheap mortgage rates, Idaho is still expensive for homebuyers. It has a high typical home price, and incomes don’t balance that out, as they’re 7% less than the national median.

Typical home price in Illinois: $233,661 (80% of typical U.S. price)

  • Typical single-family home value in 2021: $235,641
  • Average mortgage rate, July 2021: 3.041%
  • Average mortgage payment to median income: 22.3%

Residents of Illinois generally don’t need to spend too much of their salaries on their mortgages. The typical house price is 20% lower than the countrywide number, and incomes are 5% above the national median.

Typical home price in Indiana: $185,805 (63% of typical U.S. price)

  • Typical single-family home value in 2021: $186,098
  • Average mortgage rate, July 2021: 3.144%
  • Average mortgage payment to median income: 21.5%

With inexpensive housing, Indiana is one of the easier states to be a homeowner. The median income is 12% lower than the U.S. median, but residents still don’t need to spend too much of that income on their mortgages.

Typical home price in Iowa: $165,955 (57% of typical U.S. price)

  • Typical single-family home value in 2021: $167,036
  • Average mortgage rate, July 2021: 2.915%
  • Average mortgage payment to median income: 17.6%

Iowa has very low housing prices, mortgage rates, and a reasonable median income (6% below the national median). Those factors help it rank near the bottom in terms of how much residents spend on a mortgage.

Typical home price in Kansas: $176,898 (60% of typical U.S. price)

  • Typical single-family home value in 2021: $177,374
  • Average mortgage rate, July 2021: 3.039%
  • Average mortgage payment to median income: 18.8%

Kansas is another state that combines cheap housing prices with a median income just 6% off the national median, which makes it affordable to buy a home there.

Typical home price in Kentucky: $168,998 (58% of typical U.S. price)

  • Typical single-family home value in 2021: $169,033
  • Average mortgage rate, July 2021: 3.106%
  • Average mortgage payment to median income: 21.5%

The low average housing prices in Kentucky make up for incomes 20% below the national median. Since houses are inexpensive, Kentucky residents don’t need to spend too much of their incomes on their mortgages.

Typical home price in Louisiana: $187,844 (64% of typical U.S. price)

  • Typical single-family home value in 2021: $188,542
  • Average mortgage rate, July 2021: 3.022%
  • Average mortgage payment to median income: 24.2%

The typical homeowner in Louisiana spends just under a quarter of their salary on their mortgage. That reasonable amount is due to the cheap housing, as incomes in this state are 22% lower than the U.S. median.

READ:  An MBA Could Skyrocket Your Income by Tens of Thousands of Dollars -- or Not. Here Are the Facts

Typical home price in Maine: $306,018 (104% of typical U.S. price)

  • Typical single-family home value in 2021: $304,138
  • Average mortgage rate, July 2021: 3.043%
  • Average mortgage payment to median income: 34.3%

Many homeowners in Maine need to stretch their budgets to make it work. Although home prices are only a few ticks above the country as a whole, the median income is 10% lower than the national median.

Typical home price in Maryland: $366,581 (125% of typical U.S. price)

  • Typical single-family home value in 2021: $376,934
  • Average mortgage rate, July 2021: 3.002%
  • Average mortgage payment to median income: 27.8%

In Maryland, the average mortgage payment is just barely able to meet the 28% rule. Its high housing costs are balanced out by high salaries 32% more than the national median.

Typical home price in Massachusetts: $518,203 (177% of typical U.S. price)

  • Typical single-family home value in 2021: $532,229
  • Average mortgage rate, July 2021: 2.966%
  • Average mortgage payment to median income: 39.6%

Massachusetts has some of the country’s most expensive housing costs. Owning a home is challenging in this state, even with a median income that beats the national median by 31%.

Typical home price in Michigan: $208,337 (71% of typical U.S. price)

  • Typical single-family home value in 2021: $206,536
  • Average mortgage rate, July 2021: 3.162%
  • Average mortgage payment to median income: 23.3%

Michigan residents don’t need to spend too much on housing. The typical home price keeps mortgage payments affordable, even with high mortgage rates and a median income 9% lower than the nationwide median.

Typical home price in Minnesota: $301,576 (103% of typical U.S. price)

  • Typical single-family home value in 2021: $305,564
  • Average mortgage rate, July 2021: 3.011%
  • Average mortgage payment to median income: 26.6%

In Minnesota, homeowners normally have a little breathing room in their budgets. The typical home price is close to the U.S. price, and incomes beat the country as a whole by 14%.

Typical home price in Mississippi: $140,818 (48% of typical U.S. price)

  • Typical single-family home value in 2021: $140,642
  • Average mortgage rate, July 2021: 3.102%
  • Average mortgage payment to median income: 20.4%

Mississippi has some of the cheapest home prices in the United States. Incomes are also on the low side at 30% below the national median, but mortgage payments are still very reasonable for residents with average incomes.

Typical home price in Missouri: $194,226 (66% of typical U.S. price)

  • Typical single-family home value in 2021: $195,099
  • Average mortgage rate, July 2021: 3.046%
  • Average mortgage payment to median income: 22.4%

Homeowners in Missouri don’t need to spend too much of their money on their mortgages. Housing costs are well below the typical U.S. price, and earnings are only 6% less than the national median.

Typical home price in Montana: $359,678 (123% of typical U.S. price)

  • Typical single-family home value in 2021: $358,751
  • Average mortgage rate, July 2021: 3.099%
  • Average mortgage payment to median income: 41.8%

For residents in Montana, becoming a homeowner isn’t easy. Not only are prices on the high side, but the median income is 13% lower than the U.S. median.

Typical home price in Nebraska: $206,538 (70% of typical U.S. price)

  • Typical single-family home value in 2021: $206,621
  • Average mortgage rate, July 2021: 2.976%
  • Average mortgage payment to median income: 21.4%

Nebraska ranks as one of the better states for home affordability. It has inexpensive housing costs, low interest rates on mortgages, and a median income only 4% off from that of the United States.

Typical home price in Nevada: $368,254 (126% of typical U.S. price)

  • Typical single-family home value in 2021: $382,198
  • Average mortgage rate, July 2021: 3.110%
  • Average mortgage payment to median income: 38.7%

The typical Nevada resident has a tough time paying for a home because of high typical prices. Incomes aren’t enough to balance that out, as they’re 4% less than the national median.

Typical home price in New Hampshire: $366,129 (125% of typical U.S. price)

  • Typical single-family home value in 2021: $379,870
  • Average mortgage rate, July 2021: 3.033%
  • Average mortgage payment to median income: 31.0%

Buying a home in New Hampshire is doable, but many residents will find it challenging. Although the median income beats the U.S. median by 19%, the typical home price still leads to expensive mortgage payments.

Typical home price in New Jersey: $408,517 (139% of typical U.S. price)

  • Typical single-family home value in 2021: $419,636
  • Average mortgage rate, July 2021: 3.000%
  • Average mortgage payment to median income: 31.4%

New Jersey is home to high housing costs and high salaries (30% more than the national median). Earnings don’t quite outweigh the expensive home prices, so mortgages take up a significant chunk of what homeowners make.

Typical home price in New Mexico: $248,670 (85% of typical U.S. price)

  • Typical single-family home value in 2021: $250,046
  • Average mortgage rate, July 2021: 3.104%
  • Average mortgage payment to median income: 31.8%

The state of New Mexico is another where affording a home is possible, but it can take some aggressive budgeting. While home prices are below the typical U.S. price, the median income is also 21% lower than the U.S. median.

Typical home price in New York: $371,880 (127% of typical U.S. price)

  • Typical single-family home value in 2021: $324,464
  • Average mortgage rate, July 2021: 3.050%
  • Average mortgage payment to median income: 29.1%

Despite how costly New York City is, New York as a whole isn’t nearly as bad. House prices are more expensive than average, but the median income is also above average (10% more than the national median). The state ends up just over 1% off from passing the 28% rule.

Typical home price in North Carolina: $248,950 (85% of typical U.S. price)

  • Typical single-family home value in 2021: $250,534
  • Average mortgage rate, July 2021: 3.024%
  • Average mortgage payment to median income: 28.6%

Housing is a little expensive in North Carolina, as the average mortgage payment to median income is slightly over the 28% mark. The typical home price is 15% less than the typical U.S. price. Median income follows a similar pattern, coming in 13% below the U.S. median.

Typical home price in North Dakota: $246,588 (84% of typical U.S. price)

  • Typical single-family home value in 2021: $251,844
  • Average mortgage rate, July 2021: 2.945%
  • Average mortgage payment to median income: 25.0%

North Dakota homeowners have reasonable mortgage payments that take up a quarter of their income on average. This state’s housing prices are less expensive than prices across the country, and the median income is only 2% less than the national median.

Typical home price in Ohio: $181,756 (62% of typical U.S. price)

  • Typical single-family home value in 2021: $183,307
  • Average mortgage rate, July 2021: 3.160%
  • Average mortgage payment to median income: 20.7%

Low house prices make Ohio an affordable place to purchase a home. Even with a median income 11% below the median for the whole country, average mortgage payments don’t cost much.

Typical home price in Oklahoma: $150,574 (51% of typical U.S. price)

  • Typical single-family home value in 2021: $151,469
  • Average mortgage rate, July 2021: 3.080%
  • Average mortgage payment to median income: 18.3%
READ:  3 Habits That Save Me Money Every Week

Oklahoma offers some of the most affordable homes nationwide. Incomes are 17% less than the national median, but the typical house price is barely over half of the typical U.S. price.

Typical home price in Oregon: $447,968 (153% of typical U.S. price)

  • Typical single-family home value in 2021: $452,610
  • Average mortgage rate, July 2021: 3.082%
  • Average mortgage payment to median income: 44.3%

The housing market in Oregon makes it hard on would-be homeowners. Expensive prices without much difference in median income (only 2% higher than the national median) result in very high average mortgage payments.

Typical home price in Pennsylvania: $234,684 (80% of typical U.S. price)

  • Typical single-family home value in 2021: $235,808
  • Average mortgage rate, July 2021: 3.033%
  • Average mortgage payment to median income: 24.4%

Pennsylvania residents can purchase homes with reasonable mortgage payments for their incomes (3% less than the national median). A typical home price 20% less than the typical U.S. price keeps mortgages budget friendly.

Typical home price in Rhode Island: $372,809 (127% of typical U.S. price)

  • Typical single-family home value in 2021: $380,118
  • Average mortgage rate, July 2021: 3.032%
  • Average mortgage payment to median income: 34.6%

Homeowners in Rhode Island are often stretched thin by costly mortgage payments. That’s because of expensive homes and a median income (8% more than the U.S. median) that isn’t enough to balance those out.

Typical home price in South Carolina: $225,406 (77% of typical U.S. price)

  • Typical single-family home value in 2021: $228,306
  • Average mortgage rate, July 2021: 3.062%
  • Average mortgage payment to median income: 26.5%

South Carolina outdoes its neighbor to the north when it comes to housing costs. Mortgage payments pass the 28% rule because of this state’s cheap homes, which make up for a median income 14% lower than the national median.

Typical home price in South Dakota: $242,923 (83% of typical U.S. price)

  • Typical single-family home value in 2021: $243,785
  • Average mortgage rate, July 2021: 2.946%
  • Average mortgage payment to median income: 26.7%

While South Dakota’s median income is 9% less than the U.S. median, its typical house price is 17% less than the nationwide figure. Thanks to that and low mortgage interest rates, the average home payment doesn’t take up too much of residents’ budgets.

Typical home price in Tennessee: $231,682 (79% of typical U.S. price)

  • Typical single-family home value in 2021: $230,253
  • Average mortgage rate, July 2021: 3.015%
  • Average mortgage payment to median income: 27.2%

Tennessee has both lower housing costs and incomes (15% under the national median). Combined, those two factors lead to an average mortgage payment that passes the 28% rule.

Typical home price in Texas: $247,210 (84% of typical U.S. price)

  • Typical single-family home value in 2021: $248,078
  • Average mortgage rate, July 2021: 3.052%
  • Average mortgage payment to median income: 25.5%

While Texas is a popular place to live, homes still cost less than what they do in the rest of the country. The median income is only 3% less than the U.S. median, so the average mortgage payment still leaves homeowners with plenty of money left over.

Typical home price in Utah: $465,012 (159% of typical U.S. price)

  • Typical single-family home value in 2021: $474,233
  • Average mortgage rate, July 2021: 3.001%
  • Average mortgage payment to median income: 40.4%

The median income (15% more than the national median) hasn’t been able to match home prices in Utah. That makes home ownership difficult for many residents because of high average mortgage payments.

Typical home price in Vermont: $299,998 (102% of typical U.S. price)

  • Typical single-family home value in 2021: $306,066
  • Average mortgage rate, July 2021: 3.012%
  • Average mortgage payment to median income: 31.4%

In Vermont, the median income is somewhat lower (4%) than the national median, whereas the typical home price is a bit higher. Unfortunately, that makes it expensive to buy a home here.

Typical home price in Virginia: $328,640 (112% of typical U.S. price)

  • Typical single-family home value in 2021: $332,336
  • Average mortgage rate, July 2021: 2.991%
  • Average mortgage payment to median income: 28.3%

Virginia doesn’t quite pass the 28% rule, but it’s close. That’s primarily due to a median income 16% greater than the national median, which balances out its above-average home prices.

Typical home price in Washington: $519,552 (177% of typical U.S. price)

  • Typical single-family home value in 2021: $529,327
  • Average mortgage rate, July 2021: 3.058%
  • Average mortgage payment to median income: 43.7%

Although Washington’s median income is 20% more than the U.S. median, that’s not nearly enough to match its home prices. Residents will have a hard time making the average mortgage payment work.

Typical home price in West Virginia: $117,768 (40% of typical U.S. price)

  • Typical single-family home value in 2021: $117,639
  • Average mortgage rate, July 2021: 3.145%
  • Average mortgage payment to median income: 16.1%

The most affordable housing in the country goes to West Virginia. Its median income may be 26% less than the nationwide median, but it also has the lowest typical house price and average mortgage payment.

Typical home price in Wisconsin: $230,733 (79% of typical U.S. price)

  • Typical single-family home value in 2021: $232,906
  • Average mortgage rate, July 2021: 3.037%
  • Average mortgage payment to median income: 23.8%

Wisconsin offers a good combination of reasonable home prices and a median income 2% less than the U.S. median. Because of that, the average mortgage payment is affordable for what residents earn.

Typical home price in Wyoming: $273,992 (93% of typical U.S. price)

  • Typical single-family home value in 2021: $273,214
  • Average mortgage rate, July 2021: 3.136%
  • Average mortgage payment to median income: 28.1%

Wyoming has less-expensive homes than the norm, and earnings are only 1% lower than the median income. It still doesn’t manage to pass the 28% rule, even though it’s as close as it gets.

How to save when buying a home

With homes selling so quickly, you’re unlikely to get a discount on the home price itself. You can still get the best possible deal on a mortgage, though. Here are a few ways to do that:

  • Take steps to increase your credit score. Homebuyers with a FICO® Score of 760 or higher typically qualify for the lowest mortgage rates.
  • Save up money for a larger down payment. Putting 20% down means you don’t need to pay private mortgage insurance.
  • Shop around with the best mortgage lenders. Different lenders will offer different APRs, and even a small amount here can result in big long-term savings.

Methodology

Average mortgage payments were calculated based on a 12% down payment and using the typical home prices and the average mortgage rates for each area as of July 2021.

Sources

Census Bureau (2021). “2019 Median Household Income in the United States.”

Joint Center for Housing Studies of Harvard University (2021). “Extraordinary and Unexpected Pandemic Increase in House Prices: Causes and Implications.”

National Association of Realtors (2021). “Inventory and Months’ Supply.”

St. Louis Fed (2021). “Median Sales Price of Houses Sold for the United States.”

Zillow (2021). “Housing Data.”

[ad_2]
View more information: https://www.fool.com/the-ascent/research/average-house-price-state/

Xem thêm bài viết thuộc chuyên mục: the ascent

Related Articles

Leave a Reply

Back to top button