Six-figure salary needed to buy a home in 30 states. This is how much you'll need in NJ

• The least expensive home deals can be found in West Virginia and the most expensive in the District of Columbia.
• The most expensive home states include Hawaii, California, Massachusetts, Colorado and New Jersey.

Earning more than $100,000 a year is something many of us can only dream of. What if we told you that salary is the annual income needed to buy a home in more than half the United States?

At the start of 2025, an annual household income of $116,986 is required to be able to afford the nation's median-priced home of $418,489. This is a nearly 50% increase from the income that was needed in 2020, according to Bankrate's 2025 Housing Affordability Study.

With this, homebuyers in 30 states and the District of Columbia need to make a six-figure annual household salary to afford the typical home in their area. In 2020, only six states and the District of Columbia required a six-figure annual income.

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“Between elevated mortgage rates and the rise of home prices nationally to a record level, many aspiring homebuyers feel like owning a home is out of reach,” Bankrate senior economic analyst Mark Hamrick said in the report. “We can’t say when these conditions will ease, but we should note that home prices and availability widely vary around the nation and even throughout larger communities or metro areas. Some combination of patience and flexibility is called for.”

How much do NJ residents need to earn to buy a home?

New Jersey has the eighth-highest annual income required for residents to afford the state's median-priced home. To become a homeowner in the Garden State, a median household income of $160,001 annually is needed to afford the state's median-priced home of $539,100. This is a 54.15% increase from the annual income needed in 2020, which was $103,794.

As home prices have steadily increased over the last several years and mortgage rates have remained elevated, new homeowners in New Jersey are paying about $2,846 monthly for their mortgage. Depending on their down payment amount, property taxes and homeowner's insurance, many residents likely find themselves paying more.

What state has seen the largest increase?

Utah saw the greatest increase in the annual income needed to buy a median-priced home in the country. With an 89.4% increase from 2020, aspiring homeowners in the state must make $151,956 annually to afford a home worth $605,400.

Montana saw a similar increase, up 84.6% from 2020. Here, residents must make an annual household income of $142,316 to afford a median-priced home of $535,900.

Wyoming, Maine and Tennessee rounded out the top five states with the greatest increase in annual income needed, at 79%, 77.4% and 76.9%, respectively.

Where has the annual income increased the least?

On the other end, the annual income needed to buy a median-priced home in some states increased by a much smaller — though still significant — margin.

The annual household income needed to buy a typical home increased the least in Texas, where residents need to make about $105,633, or 25.8% more than in 2020, to buy a median-priced home worth $337,600. It's followed by Louisiana, where a $76,145 annual household income is needed — or 26% more than 2020 — to buy a median-priced home worth $251,500.

Kansas (31.1%), North Dakota (33.6%) and Illinois (35.2%) also had among the smallest increases in the annual household income needed to buy a home.

What states require the highest and lowest annual salaries?

Overall, the District of Columbia requires the highest annual household income to buy a home, at $240,009. Hawaii ($235,638), California ($213,447), Massachusetts ($174,392) and Colorado ($168,643) make up the remaining five states with the highest annual income required for homebuyers.

In contrast, West Virginia requires the lowest annual income of all 50 states, at $64,179, for homebuyers looking to buy a median-priced home. The states of Iowa ($70,437), Ohio ($71,080), Mississippi ($72,072) and Indiana ($72,342) also have among the lowest annual income required for homebuyers.

Here's how much annual income is required to buy a median-priced home in all 50 states and the District of Columbia:

Maddie McGay is the real estate reporter for NorthJersey.com and The Record, covering all things worth celebrating about living in North Jersey. Find her on Instagram @maddiemcgay, on X @maddiemcgayy, and sign up for her North Jersey Living newsletter. Do you have a tip, trend or terrific house she should know about? Email her at MMcGay@gannett.com.