Arizona is the 15th most expensive state to buy a home, but it's #1 that really surprises

Phoenix, Arizona: Arizona ranks as the 15th most expensive state in which to buy a home, according to a study carried out by a financial website. The study showed that the average home value in the state in 2024 was $427,542, which resulted in a 20% down payment cost of $85,508.46, leaving homeoweners with a loan of $342,033.83. The result was a monthly mortgage of $2,234.36, and an annual mortgage of $26,812.36. The minimum salary one would need to afford these costs was $89,374.53. The study found that in 42 states, a six-figure salary was not required to purchase a home, while in eight states, a six-figure salary falls short. The average home price in the US was $495,100 in the second quarter of 2023.

Which state is the most expensive to buy a home?

Hawaii (which topped the list) and California are among the most expensive states for homebuyers, with Hawaii requiring a minimum salary of $202,200.59 and California requiring $164,168.07. In Hawaii, the average home price is just under $1 million, requiring a $193,454 down payment and a high salary to afford the mortgage. California's average home price is $785,333, necessitating a salary over three times the average US annual salary. In Washington, DC, a $150,096.08 salary is needed to afford an average home price of $718,017.

Which state is the cheapest to buy a home?

The most affordable state is West Virginia, where a salary of $32,418 is sufficient to buy a home, followed by Mississippi and Louisiana. Southern states like Kentucky, Louisiana, and Arkansas offer more affordable housing options, with significantly lower required salaries to buy homes compared to the national average.

The study assumes buyers choose a 30-year fixed-rate mortgage with a 20% down payment and a 6.82% interest rate, ensuring housing costs do not exceed 30% of gross income.