H
omeownership is often seen as a symbol of financial stability, but for many Americans living in high-cost states, it can feel like a never-ending struggle to keep up with mortgage payments. The median home price nationwide is $412,000, according to Realtor.com's February 2025 Monthly Housing Trends Report. This means that homeowners who purchase at this price point will need to work approximately 10 days each month just to cover the mortgage payment.

    The disparity between income and housing affordability has grown significantly in recent years, with home prices outpacing wage growth. "This trend intensified during the pandemic, when a surge in demand strained inventory and drove prices sharply upward," says Hannah Jones, Realtor.com's senior economic research analyst.

    In states like Hawaii, California, and Montana, homeowners face particularly challenging affordability issues. In Hawaii, for example, the median home list price is $796,947, requiring owners to work 17 days each month just to cover the payment of $5,222, including tax and insurance. Similarly, in California and Montana, homeowners need to work 15 days a month.

    In contrast, states like West Virginia and Ohio have lower median home prices, making it easier for residents to afford mortgage payments. In these states, homeowners would only need to work about 7 and 6 days a month, respectively.

    The affordability crisis is not just about rising prices; it's also about a shortage of homes. Housing construction has not kept pace with demand, according to the U.S. Census Bureau report. The housing shortage will take 7.5 years to fix at the current rate of construction, and even modest increases in home prices or mortgage rates can exacerbate this crisis.

    A recent report from the Realtor.com economic research team found that the country still fell 3.8 million units short of meeting demand relative to new household formations and pent-up demand. This shortage disproportionately affects lower-income and marginalized communities, with nearly 60% of Black American renters facing moderate or severe housing cost challenges.

    To address this issue, experts recommend increasing home supply at various price points to bring earnings and home prices more in line. "Ample rental and for-sale inventory are both important to providing affordable housing options," adds Jones.