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You may be surprised to discover that despite its affordability, Fayetteville, Arkansas is considered one of the best places to invest in real estate due to the city’s economic growth and rental vacancy rate. Other best cities to live in include the state capital of Little Rock, a historic city set along the Arkansas River, and the quaint city of Bentonville, where Walmart got its start. Consumer debt and credit records in this analysis are based on Experian data from the second quarter of 2019. 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 8% less than the national median. With inexpensive housing, Indiana is one of the easier states to be a homeowner.
Homeowners have an average mortgage payment over 45% of their median income. At 1,746 square feet, the average home in the state costs less than $100 a square foot, meaning those with the budget can afford more house for their dollar than they can in most states. However, Oklahoma has high levels of poverty and low levels of quality of life satisfaction. The District of Columbia has the country's third-highest home prices and its lowest homeownership rate. Those looking to buy, can expect to pay $701,895 for a typical 1,440 square foot home.
Typical home price in New Jersey: $480,275 (105% of typical U.S. price)
The tool automatically checks for updates from the FHFA and Bureau of Labor Statistics once a week. Depending on the data release, it will only be a maximum of one week out of date with those series. That means if reported inflation is ahead of home prices, it will inflation-adjust the front month or two . Find my historical home price series using nominal prices and one adjusted for inflation. The tool automatically checks for data updates weekly, but due to report release cadence, the data lags behind .
Now, let's take a deeper dive into what average house prices are like across the country. In fact, Idaho has the nation's second-highest level of population growth. Partially due to the increase in demand, home prices are high. The typical home in Idaho costs $466,435 and measures 1,932 square feet. However, homeownership is also high, with 70.4% of residents owning their homes. Regarded as the nation’s birthplace, Virginia is full of national history, arts and natural beauty.
Why are you deriving historical median home values and not average home values?
The most affordable housing in the country goes to West Virginia. Its median income may be 24% less than the nationwide median, but it also has the lowest typical house price and average mortgage payment. North Dakota homeowners have reasonable mortgage payments that take just over 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 6% less than the national median. This resulted in one of the biggest seller's markets in history, although that may be changing as mortgage rates increase and housing supply expands.
Hawaii is the most difficult state to buy a home, based on Zillow's data. The average mortgage payment is 78.3% of the state's median income. Esswein joined Kiplinger in May 1984 as director of special publications and managing editor of Kiplinger Books.
Average House Price by State in 2022
Another measure, the percentage of monthly family income consumed by a mortgage payment (principal and interest, using a mortgage rate of 4%) is 14%, up slightly from 2011, when it was 12%. Even though home prices remain high year-over-year, they’re not as eye-popping as they were earlier this year. How far home prices dip in 2023 will likely depend on where mortgage rates go. In the first quarter of 2022, the median price of existing homes in the U.S. was 361,500 U.S. dollars, which is set to increase to 376,100 U.S. dollars by the first quarter of 2023. Since 2017, there has been a price jump between the first two quarters of each year, followed by a gradual decrease until the next year. The median value of existing homes has increased on an annual basis since 2011, in spite of the aforementioned variance throughout the given year.
Arizona, Utah, and Idaho were the top three states where prices rose the most, while District of Colombia saw the most modest increase. Slowing new construction, may keep many potential homebuyers in the rental market longer and thus fuel the already high rental demand. October 2022 was the first time that inventory climbed back to its 2020 level for the same time of year. Katie Ziraldo is a financial writer and data journalist focused on creating accurate, accessible and educational content for future generations of home buyers.
Typical home price in Oklahoma: $181,574 (42% of typical U.S. price)
Meanwhile, the median household income in the United States is $67,521 a year. This means the median family can only afford a mortgage of around $250,000 and may find themselves being priced out of owning a home. At $248 per square foot, the average home costs around $372,000. Homeowners don’t even get lucky in the way of property taxes, either. The cost of living index in the state is almost 113, while the median household income hovers around $67,000.
And the job market is growing slower than average as well, with future job growth over the next decade projected at 29.3%, compared to the U.S. average of 33.5%. When you’re deciding where to live, it’s important to consider factors beyond the financials, including things like job opportunities, crime rates, and nearby activities or attractions. Offer pros and cons are determined by our editorial team, based on independent research.
Still, the state ends up a bit over 5% off of passing the 28% rule. Residents of Illinois generally don't need to spend too much of their salaries on their mortgages. The typical house price is 37% lower than the countrywide number, and incomes are 9% above the national median. According to the Federal Reserve Bank of St. Louis, the median home sales price is $428,700. The benchmark of affordability stands at 3.0—right at the historical average and up a tad from 2011.
One way people are bringing down the cost of purchasing a home is by relocating. Location is the most significant contributor to housing costs, with a typical home in Hawaii, for example, costing more than six times a typical home in West Virginia. Home prices are highest in the Northeast and West, with the highest prices concentrated around the most densely populated areas.
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