Most and Least Affordable States for Homeowners: 2026 Cost Analysis

We analyzed total annual homeownership costs across all 50 states to create the Homeownership Affordability Index, combining five major expense categories: mortgage payments, property taxes, homeowners insurance, utilities and home maintenance. We ranked all 50 states from least to most affordable, with #1 representing the highest housing cost burden and #50 representing the lowest. Hawaii and California tie for least affordable at #1 (69.8% of median household income), while West Virginia ranks most affordable at #50 (32.1%) despite earning $60,798 annually. The findings reveal that geographic location determines affordability more than income level.

The findings challenge conventional assumptions about expensive housing markets. Maryland ranks 15th in absolute costs but 36th in affordability thanks to the nation's third-highest median income of $102,905. Alaska ranks 23rd in costs but 42nd in affordability, with high salaries offsetting harsh-weather expenses. Seven Midwest states claim the top 10 most affordable spots, with homeownership consuming less than 41% of income.

We created the Homeownership Affordability Index to measure housing cost burden relative to income across all 50 states. The index combines five major homeownership expense categories into total annual costs, then calculates what percentage of median household income those costs represent.

The Five Cost Components:

Affordability Calculation: Total annual costs divided by median household income from the U.S. Census Bureau's 2024 American Community Survey, expressed as a percentage. Lower percentages indicate better affordability regardless of absolute dollar amounts.

States rank separately for absolute costs (total dollars spent) and affordability (costs as percentage of income). The gap between these rankings reveals which states' high incomes offset expensive housing and which states' low incomes make even cheap housing burdensome.

Five states see homeowners spending more than 61% of median household income on housing costs, well above the 49.1% national average and far exceeding the standard 30% housing cost burden threshold. Nationally, homeowners spend 49.1% of median household income on these five major homeownership costs. The least affordable states span both coasts and include expensive markets where even six-figure incomes can't offset housing costs.

Hawaii and California tie for least affordable despite having the highest and fourth-highest median incomes nationally at $100,745 and $100,149. Both states combine expensive median home values ($820,224 in Hawaii, $756,323 in California) with above-average property taxes, insurance and maintenance costs that push total annual expenses near $70,000.

Florida's third-place ranking represents the most striking finding. The state ranks just ninth in absolute costs at $51,996 annually, appearing moderate compared to Hawaii and California, but climbs to third least affordable when measured against Florida's median income of $77,735, roughly $3,900 below the national median. Florida's insurance crisis drives the burden, with average annual premiums of $17,639 consuming 22.7% of median income before factoring in mortgage, taxes or utilities.

Montana homeowners spend 63.7% of income on housing despite the state's outdoor recreation appeal. Expensive homes in mountain communities combine with median income of $75,340 (well below other Western states like Washington ($99,389) and Colorado ($97,113)) to create severe affordability pressure.

Rhode Island rounds out the top five at 61.9% of income. The state's expensive Northeast housing market and property taxes averaging 1.53% of home value strain budgets despite median income of $83,504 sitting slightly above the national average.

The most affordable states keep homeownership costs well below the 49.1% national average, with the top five allocating 40.4% or less of median household income to housing. The Midwest leads affordability rankings, with four of the five most affordable states through a combination of low home prices, moderate property taxes and reasonable incomes that make housing genuinely attainable.

West Virginia leads the nation for affordability by a wide margin. The state's median home value of $168,318 (the only state where typical homes cost less than $170,000) combines with property taxes of just 0.52% and insurance premiums around $1,500 annually to keep total costs under $20,000 per year. Even with median income of $60,798, among the lowest nationally, homeowners allocate just 32.1% to housing.

Iowa ranks second at 35.9% of income despite median income of $75,501 exceeding West Virginia's by nearly $15,000. Iowa benefits from median home values below $210,000 and property tax rates under 1.5%, keeping annual costs to $27,078.

Ohio claims third at 38.8% of income. The state's property tax rate of 1.46% (higher than Iowa's) is offset by competitive insurance averaging $1,414 annually and home values around $212,000.

North Dakota and Kansas round out the top five, both at 40.4% of income. North Dakota's higher median income of $77,871 makes $30,490 in annual costs manageable. Kansas benefits from similar home values and property taxes that keep costs nearly identical to North Dakota despite median income $2,357 lower.

Five states see homeowners spending more than $50,000 annually on housing costs before adjusting for income. High median home values drive the majority of expenses, but property taxes, insurance and maintenance each add thousands to tens of thousands of dollars yearly.

Hawaii's median home value of $820,224 (the highest in the nation) drives annual mortgage payments to $52,125 and maintenance costs to $16,404 using the industry-standard 2% calculation. Despite Hawaii's property tax rate of just 0.31% (the lowest nationally), property taxes still reach $2,546 annually on expensive homes.

California ranks second at $69,931 annually. Property taxes average $5,294 per year based on California's 0.70% effective rate, while insurance premiums of $2,715 reflect wildfire risk in many communities. The state's median home value of $756,323 drives mortgage payments to $43,953 yearly.

New Jersey shows the nation's starkest property tax burden at $11,696 annually, nearly double California's total and more than West Virginia homeowners pay for all five cost categories combined. The state's 2.23% effective property tax rate is the highest in the nation.

Massachusetts homeowners pay $3,229 annually for utilities (second highest nationally) due to cold winters and expensive heating costs. Total annual costs reach $63,679 despite the state ranking seventh for affordability thanks to median income of $104,828.

The five states with the lowest absolute homeownership costs all keep total annual expenses below $28,100, with West Virginia under $20,000. These states cluster in the Midwest and South, where median home values remain below $230,000 and property taxes stay under 1.5%.

West Virginia is the only state where typical homeownership costs less than $20,000 annually. The state's $168,318 median home value keeps mortgage payments to $9,777 per year, while property taxes of just 0.52% add only $874 annually. Insurance premiums around $1,582 and utilities of $1,664 complete the low-cost picture.

Mississippi's $26,976 annual cost reflects slightly higher home values at $186,918 but also substantially higher insurance at $5,534 (more than triple West Virginia's premiums). The state's Gulf Coast location increases storm risk and insurance costs despite low property taxes of 0.80%.

Iowa, Kentucky and Ohio round out the five least expensive states, clustering tightly between $27,078 and $28,018 annually. All three states feature median home values between $199,000 and $212,000, property tax rates from 0.80% to 1.46%, and competitive insurance markets keeping premiums under $1,700 annually.

Eight states improve 10 or more ranking spots when measuring affordability versus absolute costs, revealing where high incomes offset expensive housing. These states appear costly in raw dollars but become manageable when measured against what residents earn.

Five expense categories combine to create total homeownership costs, but their relative importance varies dramatically by state. Insurance dominates Florida's burden while property taxes crush New Jersey homeowners. Understanding which costs drive your state's total helps identify where to focus cost-reduction efforts.

Geographic clustering reveals regional affordability patterns. Western states dominate expensive rankings due to high home values. Midwest states cluster at the affordable end with lower prices and property taxes. Southern states vary widely, with Florida's insurance crisis making it an outlier among typically affordable Southern markets.

Seven of the 10 most affordable states sit in the Midwest: Iowa, Ohio, North Dakota, Kansas, Indiana, Illinois and Michigan. Midwest states share home values below $230,000, property tax rates from 0.80% to 1.84%, and moderate insurance costs under $2,000 annually. Combined with median household incomes $72,000 to $83,000, homeownership consumes just 36% to 41% of income.

Western expensive states (Hawaii, California, Washington, Colorado) all feature median home values exceeding $485,000. Even high incomes in these states ($97,000 to $101,000) can't fully offset housing costs that reach $52,000 to $70,000 annually.

Northeast states split. Massachusetts, New Jersey, New York and Rhode Island rank among the least affordable, with costs exceeding $51,000 annually. But Maryland, Delaware, Pennsylvania and New Hampshire become affordable when measured against incomes, ranking 36th, 37th, 41st and 14th respectively for affordability despite appearing expensive in absolute dollars.

Homeownership affordability depends more on your state's cost structure than your income level, but within each state, costs and burdens vary substantially. These rankings help homebuyers identify where housing fits their budget and help current homeowners understand whether their burden matches state averages.

We analyzed total annual homeownership costs for all 50 states using seven data sources covering home values, mortgage rates, property taxes, insurance, utilities, income and maintenance standards. The analysis measures costs for a typical homeowner purchasing a median-priced home with a 20% down payment in January 2026.

The table below shows comprehensive homeownership cost and affordability data for all 50 states, ranked from least to most affordable based on housing costs as a percentage of median household income.

Note: States with identical affordability percentages share the same rank.