What’s the going rate for happiness these days?
Studies have shown that income can directly correlate with emotional well-being, and so a recent report from GOBankingRates broke down the affordability of happiness by state. But where does homeownership eligibility fit in?

Sometimes there’s a match. In Hawaii, someone needs to make at least $188,160 to be happy, per GOBankingRates, and according to Bankrate, a prospective buyer needs to make $185,829 to be able to afford a typical home. In Connecticut, the numbers line up as well: $119,595 for happiness and $119,614 for an average home.

In some states, however, happiness may be within reach, but owning a home is not. RISMedia cross-referenced where minimum happiness salary requirements don’t quite make the threshold of owning a home, per GOBankingRates and Bankrate research. Below is a sampling:

California
Minimum salary needed to be happy: $143,220
Minimum salary needed to buy a typical home: $156,000 

Colorado
Minimum salary needed to be happy: $112,245
Minimum salary needed to buy a typical home: $152,229

Massachusetts
Minimum salary needed to be happy: $155,400
Minimum salary needed to buy a typical home: $162,471

Montana
Minimum salary needed to be happy: $108,255
Minimum salary needed to buy a typical home: $131,357

New Hampshire
Minimum salary needed to be happy: $121,380
Minimum salary needed to buy a typical home: $130,329

New Jersey
Minimum salary needed to be happy: $115,815
Minimum salary needed to buy a typical home: $152,186

New York
Minimum salary needed to be happy: $132,825
Minimum salary needed to buy a typical home: $148,286

Rhode Island
Minimum salary needed to be happy: $117,600
Minimum salary needed to buy a typical home: $132,343

Utah
Minimum salary needed to be happy: $109,725
Minimum salary needed to buy a typical home: $133,886

Washington
Minimum salary needed to be happy: $121,485
Minimum salary needed to buy a typical home: $156,000 

Brokers chime in
Broker expertise from Better Homes and Gardens Real Estate provides a more realistic view of housing affordability on a regional level, and the numbers align much more closely with that happiness salary than with Bankrate’s minimum thresholds. 

In Washington, Noe Quezada—broker and REALTOR® with the Better Homes and Gardens Real Estate Northwest Home Team—says buyers should plan for an annual household income of $120,000 to $140,000 with a 3.5% down payment to afford a purchase comfortably. 

“This salary range aligns with the recommended financial guideline of keeping monthly housing costs, mortgage, taxes and insurance at 28% – 30% of gross income,” says Quezada, taking into account that a starter home is priced between $400,000 and $450,000 in Thurston County and interest rates are hovering around 6.5%. “This income bracket ensures that mortgage payments remain manageable and provides a financial cushion to cover living expenses and unforeseen costs.”

In Colorado, Mike Kenney—broker/owner of Better Homes and Gardens Real Estate Kenney & Company—says incomes in the range of $100,000 – $110,000 are needed to purchase a starter home. In areas with a higher median price, $140,000 is a more realistic number. For context, in the Colorado Springs market, the median price for a home is $455,000.

“With careful planning and strategic pricing, first-time buyers can still find opportunities in these dynamic markets,” he says.

In both of these markets, potential buyers are taking it slow. Colorado’s buyers are cautious, but active, says Kenney. And in Washington, buyers are patiently waiting and striking when the time is right. If there’s one thing that rings true, however, it’s that it’s not all about income. 

“Rather than letting current prices hold them back, these buyers are carefully evaluating their options and taking advantage of down payment assistance programs that can make homeownership more accessible, particularly for first-time buyers,” says Quezada.

Methodology
GOBankingRates estimated how much money might be needed to achieve happiness by analyzing each state’s cost-of-living index, using $105,000 as the benchmark for the ideal income for life satisfaction in North America (a number set by a Purdue study). 

Bankrate’s study analyzed annual income requirements for a median-priced home in the U.S. by state, using Redfin median sale price data from January 2020 and January 2024 on February 26, 2024 to calculate monthly mortgage payments for every state.

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