The COVID-19 pandemic has resulted in an unprecedented surge in home ownership demand. Inventory is at a record high low as it is the average time it takes to sell a home. Both home prices and the proportion of homes sold above the asking price are now at record highs.
Of course, high home prices are nothing new in some parts of the country. Even before the pandemic, the average home value in nearly a dozen states was over $ 300,000. In stark contrast, there are some states where a typical home is worth more than $ 100,000 less than the national median of $ 240,500.
Using data from the US Census Bureau, Wall St. 24/7 identified the states with the highest and cheapest costs to buy a home.
Housing values in a particular area often reflect what residents can afford. And it is not surprising that in countries with a low median of residential real estate, incomes also tend to be relatively low and vice versa. In each of the five states with the lowest average home values, the median household income is over $ 10,000 below the $ 65,700 a typical American household makes. Similarly, the five states with the highest median household scores have median household incomes that exceed the national median by more than $ 10,000.
While home value tends to be closely related to income, it seems that homes are still more affordable in countries with cheaper housing. In each of the 10 states with the cheapest homes, the home ownership rate exceeds the national rate of 64.1%. Meanwhile, home ownership is above average in only three of the 10 most expensive states.