A new study, conducted by Chicksx, analyzed data from the Bureau of Economic Analysis and the US Census Bureau to determine how long the average earner in each state needs to save for a home.
In first place is Hawaii, with housing affordability statistics for 2023 showing that Hawaii homes reach a median value of $846,400. With just $489 left over each month for resident of Hawaii, after essential expenses, residents would need to save for a staggering 28 years and 10 months to be able to afford a 10% deposit.
California ranks second on the list, with residents needing 10 years and six months to afford a deposit on a home with a median value of $725,800. In California, the average after-tax yearly income is $69,140, but high monthly expenses leave just $1,150 each month for potential home savings.
Utah ranks third, requiring eight years and five months to save for a 10% deposit on a home with a median value of $517,700.
Arizona follows closely at fourth place, with residents needing to save for eight years and four months to afford a median-priced home of $411,200.
Georgia and Oregon tie for fifth place, both requiring seven years and six months of saving.
Florida ranked sixth at seven years and one month, while Nevada ranked seventh at six years and seven months.
Delaware and Idaho tie for the final spot on the list, with residents of each state needing to save for six years and two months just to be able to lay down a 10% deposit, with median house prices in Delaware recorded at $359,700, and $428,600 in Idaho.
The 10 states requiring residents to save the longest to buy a home:
|
Rank |
State |
Median house value |
Average amount of time required to save for a home deposit |
Monthly income after expenses |
|
1. |
Hawaii |
$846,400 |
28 years, 10 months |
$489 |
|
2. |
California |
$725,800 |
10 years, 6 months |
$1,150 |
|
3. |
Utah |
$517,700 |
8 years, 5 months |
$1,022 |
|
4. |
Arizona |
$411,200 |
8 years, 4 months |
$825 |
|
5. (=) |
Georgia |
$323,000 |
7 years, 6 months |
$1,082 |
|
5. (=) |
Oregon |
$484,800 |
7 years, 6 months |
$721 |
|
6. |
Florida |
$381,000 |
7 years, 1 month |
$895 |
|
7. |
Nevada |
$441,100 |
6 years, 7 months |
$1,111 |
|
8. (=) |
Delaware |
$359,700 |
6 years, 2 months |
$978 |
|
8. (=) |
Idaho |
$428,600 |
6 years, 2 months |
$1,152 |
Interestingly, Wyoming was found to be the easiest state for potential home buyers to save, with the state’s average annual income after tax at $72,699, with monthly expenses of $3,447, leaving $2,611 each month for home savings. This combination allows Wyoming residents to save for a median-priced home of $298,700 in just one year and 11 months.
South Dakota ranked as the second most affordable, requiring 1 year and 12 months to save a deposit for a median home value of $268,200. North Dakota and Nebraska tied for third, requiring two years and one month to save for a home.
“This data shows how drastically the realities of home ownership vary across America. While Hawaii residents might spend almost their entire career saving for a home, residents in states like Wyoming can achieve this milestone in under two years, on average.” said Al Alof, CEO of Chicksx, “The gap between income and housing costs creates very different realities for Americans depending on where they live. For prospective home buyers in high-cost states, these findings might prompt considerations about relocation or alternative paths to home ownership, such as starting with smaller properties or exploring areas with growing economies but still affordable housing markets.”
