Millennials, put down the avocado toast.
Ever dream of owning a home in sunny California or picturesque Colorado? This map will let you know if you can actually live that dream someday.
*** determined the cost of an average home in each state by pulling the medium home prices from Zillow, calculating monthly payments with a 4-5% market interest and a 10% down payment. Given that many financial advisors say you should invest a maximum of 30% of your gross income into a home, the website used this benchmark to calculate the minimum salary needed to afford a state’s average home.
It’s not a perfect science/calculation, particularly when you consider how medium price of homes fluctuate greatly from cities to rural areas. But the rankings do offer a bit of context.
West Virginia requires the lowest salary needed to afford its average home — $38,320 for a house worth $149,500 — followed closely by Ohio where you’d need to make $38,400 for a house worth $149,900.
There are the five most expensive states to buy homes.
Looks like that dream beach house is a going to stay a dream for most of us. You need to make $153,520 for a house worth $610,000 in Hawaii.
2 WASHINGTON, D.C.
If you want to live near the White House, you need to make $138,440 for a home worth $549,000.
Everyone wants to live in California, and the demand keeps driving up the rising prices. The state is dotted with cities more expensive than the next, and you need to make $120,120 for a house worth $499,900.
You need to make $101,320 for a house worth $419,900 in Massachusetts, and you need to make even more if you want to send your kid to Harvard.
The housing market around Denver drives up Colorado’s costs, where you need to make $100,200 for a home worth $415,000.