TAMPA, Fla. - If you’re in the market for a new home in Florida, you’ll need to make six figures, according to a new study.
A Bankrate analysis shows that Americans need an annual income of $110,871 to afford a median-priced home of $402,343, which is a nearly 50% increase from four years ago.
In Florida, homebuyers need to rake in $114,771 a year to afford a median-priced home in 2024, according to BankRate. In 2020, Florida homebuyers needed to make $72,693 to afford a ‘typical’ home.
Bankrate attributes the salary surge to a combination of high mortgage rates, rising home prices, and low inventory.
The study showed Americans needed to make six figures to afford a median-priced home in 22 states and the District of Columbia. Four years ago, only six states and the District of Columbia were that expensive.
READ: Here’s how much you need to make to be considered middle-class in Florida
According to BankRate, aspiring homeowners in the West and Northeast need the most income to afford a typical home. Anyone wanting to buy in California, Hawaii, the District of Columbia, Massachusetts, and Washington must earn between $156,814 and $197,057, the analysis concluded.
In contrast, aspiring homeowners in the South and Midwest need the least amount of income to afford a new home, according to Bankrate. Those looking to buy a home in Mississippi, Ohio, Arkansas, Indiana, and Kentucky must earn between $63,043 and $65,186, the study showed.
Click here to see how much income potential home buyers need to make in each state.
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