MEDIAN HOME PRICE TO MEDIAN INCOME
FOR U.S. CENSUS DATA | DATA AS OF DECEMBER 2024
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- According to the Federal Reserve Bank of St. Louis, the median home sales price in the United States in the first quarter of 2024 was $420,800. This was 5.4 times higher than the median household income of $77,345.
- Rural areas tend to have lower home prices and incomes compared to urban areas. Consequently, states with more rural counties, such as Texas, typically have lower median-home-price-to-median-income ratios than states with more urban counties, such as California.
- At 8.3 and 5.6, Hawaii and California, respectively, reported the highest home-price-to-income ratios, reflecting the states’ expensive housing markets and long-standing affordability issues. Indeed, four of the five most expensive cities in the United States — where the home-price-to-income ratios are even more dramatic — are located in the Golden State.
- Median income growth has consistently lagged behind increases in home price increases for two decades. From 2000 to 2022, the median annual household income in the United States rose by 77.6%, from $41,990 to $74,580. Meanwhile, the median home price nearly tripled, increasing by 170%, from $123,086 to $332,826, according to data from the U.S. Census Bureau and Zillow. Adjusted for inflation, household incomes have grown 4.5% since 2000, whereas home prices have soared 59.1%.
- Owning a home is a key aspect of the American dream, and credit unions play a vital role in helping millions of Americans achieve this goal. By championing housing affordability and watching after the financial wellbeing of members, credit unions can help more people find and afford their dream home.
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