Today's Housing Market Too Expensive for Current Homeowners

Table Of Content

• New residential roofing prices by home type
• Typical home price in North Dakota: $246,497 (72% of typical U.S. price)
• Typical home price in Missouri: $234,589 (69% of typical U.S. price)
• Roofing material prices
• States with the Highest Median Home Price
• Typical home price in Oregon: $480,251 (140% of typical U.S. price)

The cost of living is high since nearly every consumer good has to be imported from the mainland. The average home price is $319,888—a whopping 17.7 percent increase over the past year. Phoenix, in particular, has one of the hottest housing markets as of April 2021. Mortgage rates are at historic lows, and many homebuyers want to get a mortgage at those low rates while they can.

New residential roofing prices by home type

Mortgage rates reached a peak of 18.6% in October 1981, although home prices were considerably lower, even on an inflation-adjusted basis, than today's values. As the cost of homebuying climbs, first-time buyers need a six-figure salary to purchase the average home. Research released Monday from real estate company Clever finds that with a 10% down payment, buyers need to earn nearly $120,000 to afford a median-priced home. A typical home in Arkansas costs $169,867 and measures 1,792 square feet. Homeownership in the state is slightly higher than the national average, with 66.5% of residents owning their homes.

Typical home price in North Dakota: $246,497 (72% of typical U.S. price)

The average price can be influenced by outliers, such as very expensive or very cheap houses, while the median price is more representative of the typical house price. Utah has the largest homes in the nation, with an average house measuring 2,305, nearly 50% more than the national average. However, homeownership rates are higher than the national average, with 70.3% of residents owning their homes. These premiums protect the mortgage lender in the event you default on the loan. PMI payments are generally included in your monthly mortgage payment. Once you have at least 20% home equity, mortgage insurance can be canceled.

Typical home price in Missouri: $234,589 (69% of typical U.S. price)

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You might want to save anywhere from 3.5% to 20% of a home’s price for your down payment, depending on your financial circumstances and the loans you’re eligible for. The average home price in the United States was $495,100 in the second quarter of 2023, according to the Census Bureau and Department of Housing and Urban Development. By comparison, the median U.S. home price in June 2023 was $426,056, according to Redfin. These five states have the lowest median home prices in the country. Surprisingly, three of the top 10 counties nationwide where wages are growing faster than home prices—Los Angeles, San Bernardino and Riverside—can also be found in the state. That price tag is now up to $408,466, up 14.8 percent over the past year.

The median price also peaked at $417,800 in the fourth quarter of 2022, which was also the highest level since the series began in 1963. Americans spend more on housing than any other expense, with an average of 35% of income dedicated to housing costs. Homeownership allows households to invest a portion of that money into a tangible asset that appreciates over time.

The Pacific Northwest is a gorgeous area, so if you’re okay with the home prices, you’ll live in a state that’s abundant with natural beauty. From the Presidential Range to the beaches, the Granite State has a lot to offer, so be prepared to pay a little more if you want to live here. The average home price is $338,281, which has increased 13.4 percent compared to last year.

The typical home value and median household income are both 8% above their respective national benchmarks, so the income-to-home-value ratio is average. The typical home value in Ohio is the seventh lowest in the country. That along with the median household income being 88% of the U.S. median results in the fifth-best income-to-home-value ratio.

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. The down payment always looms large for folks considering buying a home. Though a 20% down payment would enable you to skip mortgage insurance — more on that below — putting 20% down isn't required. In 2021, the average down payment was 7% for first-time buyers and 17% for repeat buyers, reports the National Association of Realtors. If you’re buying a condo or another kind of home in a community overseen by a homeowners association (HOA), you’ll likely be required to pay a monthly fee.

Homes in Atlanta, on average, are going for $313,818, while homes in Savannah are going for $198,625. If you’re considering a move to the state, one destination to consider is Birmingham—Zillow reports that the average cost of a house in Birmingham is a little more than $80,000. New York state’s real estate prices are heavily influenced by New York City. Towns in the Hudson Valley and farther upstate have plenty to offer, at much more affordable prices. To get a sense of how house prices vary by state, we combed through Redfin’s monthly housing market data as of November 2023.

In the meantime, the much-higher, near-8% mortgage rates plaguing the real estate market right now are likely to stick around. In a new survey, nearly 2 out of every 5 homeowners say they couldn't afford their house at today's prices. And while this might be a good thing for owners for whom real estate is a store of value, it also speaks to the state of the market that buyers now find themselves in. The chart below shows the historical trends of both the average and median prices of houses sold in the US from 1963 to 2023. The median price of houses sold in the US in the second quarter of 2023 was $390,500, down from $399,900 in the first quarter and $417,800 in the fourth quarter of 2022.

The state’s population was around 3.2 million, giving this largely rural area a population density of just 57 people per square mile in 2021. Overall, Iowa’s population has grown slower than the country’s for the past century. An acre of land, on average, cost $3.6 million in September 2023, according to online marketplace LandSearch. The average price of a home is $263,166, and there are plenty of charming towns like Casper and Jackson Hole. However, according to Best Places, Wyoming jobs have decreased by 1.8 percent.

A smaller down payment might seem appealing, but paying more initially reduces loan costs. While lenders may allow you to put as little as 3% down for a conventional mortgage, you can save by putting down at least 10% of a home’s cost, which we assumed for our calculations here. As you can see from the chart above, a down payment takes the lion’s share of the upfront costs, no matter where the buyer lives. Most mortgage lenders will require you to take out a homeowners insurance policy, which protects you against damage from unexpected events such as natural disasters, theft or vandalism.

According to the latest census data, 65.4% of U.S. households own their home. The District of Columbia has the lowest rate of homeownership, at 40.3%. California, New York, and Hawaii are among the states with the highest housing prices and the lowest levels of homeownership.