It’s no question that affordability is stratified, and as such, housing markets tend to differentiate from state to state. According to a recent analysis by Clever Real Estate, the median household can only afford the typical home in four states: West Virginia, Ohio, Iowa and Indiana.

The latest homeowner affordability data is based on the latest interest rates (7.22%) and a 20% down payment—excluding Alaska and Vermont.

West Virginia ($175,432)

West Virginia is the most affordable state for the typical household—and it’s not even close. The median home sells for $175,432, and after a 20% down payment, $1,106 monthly or $13,273 annually is paid toward the mortgage. To afford a mortgage at this price, one should generate about $47,406 per year, although the median household income generates $54,329 annually.

It’s also worth noting that West Virginia has the highest real estate commission rate in the entire country, at a whopping 6.67%, split evenly between the buyer and seller’s agent, according to a separate data study by Clever.

Ohio ($200,959)

Ohio comes in second as the most affordable state for the typical household. The median home sells for $200,959, with a monthly mortgage payment of $1,447.33, or $17,368 yearly. To afford a mortgage at this price, an income of $62,029 per year is needed, and the average salary in Ohio is $65,720.

The typical home value is 37.9% lower compared to the national average, according to Clever’s analysis.

Iowa ($217,833)

The Midwest is often perceived as empty, or poked at casually by many Americans making generalizations due to a perceived lack of cities; more rural, small-town and harsh weather. But, for many people, Iowa is likely one of the more desirable states in the country due to its affordability, as the average house sells for $217,833 after a 20% down payment. The median sales price is 43.7% lower compared to the national average.

The annual mortgage payment is $19,005, or $1,583.75 monthly. Income needed to afford the median Iowan home touches at $67,875, and the median income statewide sits barely under $70,000—$69,588, respectively.

Interestingly enough, Iowa has an average listing commission rate of 2.67%, which is the seventh lowest in the United States, but buyer’s agents charge about 3%—the fourth highest.

Indiana ($229,424)

The only other state that Clever deems as affordable for the average buyer is Indiana, where the median home sells for $229,424. The annual mortgage payment is $18,305, or $1,525.42 monthly.

Income required to purchase a median Indiana-based home is $65,374, and the total average income statewide is $66,785. Indiana’s typical home value is 34% lower than the national average.

For more information, visit https://listwithclever.com.

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