MISSOURI – A new comprehensive real estate study has found that the average American household now needs a six-figure income to afford a “typical home” in 2025. That’s not quite the case in Missouri, but it’s getting close.
Consumer finance company Bankrate released its Housing Affordability Study last month.
On average, Bankrate’s research team found that prospective homebuyers in the United States need an annual household income of around $117,000 to afford a “typical home.” That figure marks an increase of nearly 50% since the start of the decade.
In Missouri, the average household needs an annual income of $74,263 to afford a “typical home” in the state.
Similar to national tends, that’s nearly a 50% jump from five years ago, when the average household income threshold for “typical home” was $50,890.
According to Bankrate, the steep rise is driven by multiple factors, including elevated mortgage rates and the steadily rising costs of homes. Researchers say it’s the most difficult housing market in the U.S. in decades.
The study was focused on the pre-tax income needed to afford a median-priced, or “typical” home, using price data from real estate firm Redfin. The estimates for each state were also based on property tax and monthly mortgage considerations.
Bankrate found that in 30 states, plus Washington D.C., the average household income must be at least six figures to afford a “typical home.”