OHIO — A new study by Bankrate shows that you may have to make more money just to buy your average home this year.

What You Need To Know

  • Annual income needed to buy a home increased the most in Montana, Utah, and Tennessee 
  • Income needed was based on someone spending no more than 28% of it on housing

After looking at data from all 50 states and the District of Columbia, analysts found that on average, one would need to make nearly $111,000 just to buy an average home that’s going for $402,343. Those findings are based on data from 2020.

Experts say part of the problem is home affordability.

That’s in addition to having more of a demand for homes, but not enough sellers and wage growth not keeping up with home price appreciation. 

While Bankrate noted the average across the U.S. was six figures, those hunting for homes in the Midwest and parts of the south wouldn’t need to make as much. Instead, the study shows someone would need to make anywhere from $63,000-$65,000 annually.

Portia Davis is a Mortgage Community Development Loan Officer for First Financial Bank, which is based in Ohio.

“Just have some source of income and be aware of your financial stability when it comes to your credit scores and how you manage your money. And anyone can become a homeowner,” said Davis.

“No one has to settle for just any house. Rather, there is plenty of help for people who want to buy. One of those ways is not just affordable loans programs that can help them have an affordable mortgage payment, but also down payment assistance that’s available out there to them. So, there are several agencies within Ohio that can help them prepare,” said Davis.