T
he American Dream of homeownership is becoming increasingly elusive, as the cost of housing continues to soar. Many are fleeing expensive states for more affordable havens.

    According to Redfin data, Iowa, Oklahoma, and Ohio offer the lowest median home prices, a welcome respite from the pricey markets in Hawaii, DC, and California. The disparity is largely due to a chronic shortage of supply, exacerbated by regulations and neighborhood opposition to new construction.

    "The problem is that these places have high-paying job markets and strong economies without sufficient housing," says Daryl Fairweather, Redfin's chief economist. "Supply can't meet demand because of single-family zoning red tape and neighborhood resistance to dense housing."

    The national median existing home price hit $398,400 in February, marking the 20th consecutive month of year-over-year increases, according to the National Association of Realtors. Regional trends reveal that coastal areas are pricier than the South and Midwest, but Fairweather warns this may not be a permanent state of affairs.

    "People are leaving expensive areas like the coast for cheaper destinations," he notes. "Demand is increasing in the Midwest and South, driven by growing job markets and supported new construction."

    Even relocation can't guarantee affordability, however. Americans need to earn $116,633 annually to afford the median-priced home, a significant increase from $63,925 in 2021. The median age of first-time homebuyers has also risen, now standing at 38 years old – up from the late 20s in the 1980s.

    For those navigating this uncertain landscape, saving for a down payment is taking longer than ever.