Homeownership is a symbol of financial stability for most Americans—but for those living in states where the cost of living is higher, it might seem like they’re working solely to keep a roof over their heads.
The median home price nationally is $412,000, according to the Realtor.com February 2025 Monthly Housing Trends Report. Homeowners who purchase a home at that price point will need to work approximately 10 days each month to afford the mortgage payment—and that’s without factoring in any other expenses.
“Home prices have significantly outpaced wage growth in recent years, widening the gap between income and housing affordability,” says Hannah Jones, Realtor.com® senior economic research analyst.
“This disparity intensified during the [COVID-19] pandemic, when a surge in housing demand strained inventory, driving home prices sharply upward and increasing economic pressure on households.”
Hawaii has the highest median home list price in the nation at $796,947. Homeowners purchasing a home at this price point will need to work 17 days each month just to cover the payment of $5,222, including tax and insurance. The average hourly wage in January 2025 was $38.
In California, they face a similar trend, with homeowners needing to work 15 days of the month to cover a payment of $4,773, including tax and insurance. Similarly, homeowners in Montana—where the median home list price is $613,275— would also have to work 15 days of the month.
Meanwhile, West Virginia and Ohio have the lowest median home list price, at $247,000 and $259,450, where residents will need to work about 7 and 6 days a month, respectively.
In other states, including Kansas, Missouri, Indiana, Illinois, West Virginia, and Michigan, it requires about 7 days of work each month to cover mortgage payments.
A standard full-time job means working 8 hours a day, 5 days a week, or about 20 to 22 days per month.
Nearly 75% of U.S. households, approximately 100.6 million, cannot afford a median-priced new home in 2025, priced at around $459,826, according to the National Association of Home Builders.
Even modest increases in home prices or mortgage rates exacerbate this affordability crisis significantly. For example, a mere $1,000 increase in median home prices would make homeownership unaffordable for an additional 115,593 households nationally.
How a shortage of homes affects affordability
The affordability crisis is not just about rising prices; it’s also about a shortage of homes.
Housing construction has not kept pace with demand, according to a recent U.S. Census Bureau report.
And, the housing shortage will take 7.5 years to fix at the current rate of construction, according to a new report on the housing supply gap from the Realtor.com economic research team.
Although the supply gap improved moderately in 2024, the country still fell 3.8 million units short of meeting demand relative to new household formations and pent-up demand, the analysis found.
In January 2025, 1.48 million new building permits were issued, but actual housing starts—when construction officially begins—fell to 1.37 million, a 9.8% decline from the previous month.
Meanwhile, 1.65 million homes were completed, but the overall supply remains limited, pushing prices higher and making housing less affordable for many Americans.
This supply shortage disproportionately affects lower-income and marginalized communities. A recent McKinsey report highlighted that Black Americans are among the most burdened, with nearly 60% of renters facing moderate or severe housing cost challenges.
“More home supply at more price points can help bring earnings and home prices more in sync. Not all households are interested in buying a home, so ample rental and for-sale inventory are both important to providing affordable housing options,” adds Jones.
Data methodology: To assess housing affordability, this analysis calculates the number of workdays needed to cover a median monthly mortgage payment in each state. The estimates are based on median home list prices as of February 2025 and assume a 30-year fixed mortgage at a 6.65% interest rate. Property taxes and insurance costs are factored in using a 1.7% annual rate, and calculations assume a 20% down payment. Wage data is from the Bureau of Labor Statistics’ January 2025 release, which tracks average hourly earnings across states.
