States with lower incomes have higher home ownership

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States with lower incomes have higher home ownership

States with pricier homes tend to contain more cities with younger people who cannot afford to buy a home or don’t want to be saddled with a mortgage. In more rural areas, the opposite is true.

Zoning also has a lot to do with it. In pricier states, land is both hard to come by and not always zoned for residential use. According to a recent CNN article, it’s possible to buy 90 acres in West Virginia for less than half a million dollars. In more affluent states, like Massachusetts that might not even buy you a 500-square-foot studio apartment in certain areas of downtown Boston.

At the same time, restrictive zoning laws in major cities are currently being rethought by both Democrats and Republicans as the housing crisis pushes both buying and renting out of reach for many Americans.

The CNN article also cites Federal Reserve data, which reveals that despite West Virginia’s average personal income of $52,585 per capita—the second-lowest in the country—it also has the highest homeownership rate—77%—of all 50 states. In Massachusetts, the homeownership rate was approx. 62%.

Federal Reserve data shows that the median sales price of houses for all 50 states

Peace be with you

Updated: Boston Real Estate Blog 2024