Here's how much money Minnesotans need to make to buy a median-priced home
File photo of a sold sign at a home. (FOX 9)
(FOX 9) - A new study from Bankrate shows that in about half of the states in the U.S., residents need to make six figures to afford a median-priced home. But how does Minnesota compare?
According to the study, Minnesotans currently need an annual income of $91,886 to afford a median-priced home of $323,900 and an average mortgage payment of $2,144.
Compare that to January 2020, when the annual income needed to buy a median-priced home in Minnesota was $67,890. The percent change for those four years is 35.3%.
The study shows that Minnesota is a little more affordable than almost half of the U.S. In 22 states and the District of Columbia, a six-figure salary is needed to afford a median-priced home in 2024. Only six states and the District of Columbia needed a six-figure salary to afford a typical home in 2020.
Across the U.S., to afford a median-priced home of $402,343, Americans need to earn an average salary of $110,871, which is up 46% since 2020.
California is the most expensive state to buy a home in, with a needed annual salary of $197,057. The study showed that a median-priced home there costs $739,200.
The cheapest state to live in, according to the study, is Mississippi, which requires a salary of $63,043. A typical home in that state costs $228,500.
Bankrate compiled this study by analyzing home sales, mortgage rates, property taxes and homeowners’ insurance rates across the country. The study compared these rates from 2020 to 2024.
To read the full study, click here.