H
omeownership is becoming increasingly unaffordable for many Americans. A new analysis projects that by 2030, the cost of a median home will outstrip income growth in every US state. The national median home price is expected to reach $615,103, while household incomes are unlikely to keep pace.

    In Montana, home prices are forecast to hit $932,584, requiring a staggering 144% increase in average household income to nearly $191,000. California's housing market has also seen a significant surge, with median home prices projected to exceed $1.23 million by 2030. To afford a typical property, households would need to earn more than $250,000 annually – a 140% jump from current wages.

    Other states are also facing severe affordability gaps. New York's median home price is expected to reach over $780,000, requiring a 103% increase in income to nearly $179,000. Rhode Island and New Jersey round out the top five states with the biggest affordability gaps, with projected median home prices of $855,000 and $845,000 respectively.

    Even smaller states like New Hampshire and Wyoming are feeling the squeeze due to stagnant wage growth and surging housing demand. In New Jersey, residents would need to earn over $210,000 annually to afford a home priced near $845,000. Washington State is also expected to see significant price increases, with median home prices topping $900,000 by 2030.

    The pandemic-fueled influx of remote workers and low housing inventory are contributing to the affordability crisis in many states. As a result, homeownership may become increasingly out of reach for many Americans unless their earnings rise dramatically.