Mortgage Affordability Crisis 2026:
50-State Study Reveals Where Americans Can Still Afford a Home
We analyzed median home prices, mortgage rates, and household incomes across all 50 states. The results reveal a deepening housing divide — and the few remaining affordable markets.
Data sources: U.S. Census Bureau, Federal Reserve, Freddie Mac PMMS, HUD. Full methodology below. This study may be cited with attribution to Mortgage-Info.com.
Key Findings
Methodology
This study analyzes mortgage affordability using two primary metrics: price-to-income ratio (median home price ÷ median household income) and payment-to-income percentage (monthly mortgage payment ÷ monthly gross income). Monthly payments assume a 30-year fixed mortgage at the February 2026 average rate of 6.10%, with 10% down payment, and include estimated property taxes and insurance. Data sources include the U.S. Census Bureau American Community Survey, Freddie Mac Primary Mortgage Market Survey, and state-level MLS data aggregated through Q4 2025.
Citation: "Mortgage Affordability Crisis 2026: 50-State Study." Mortgage-Info.com Research, February 2026. Licensed under CC BY 4.0.
The National Picture: Affordability at Historic Lows
The national median home price-to-income ratio has reached 5.2x in 2026, up from 3.6x in 2019 — a 44% increase in just 7 years. Using the standard 28% housing cost threshold, only 38% of American households can comfortably afford the median home in their state, down from 52% in 2019.
The affordability crisis is driven by three compounding factors: home prices that rose 48% since 2019, mortgage rates that doubled from 3.1% to 6.1%, and wage growth that failed to keep pace at just 22% over the same period. The result is a monthly payment that's effectively 68% higher than it was 7 years ago for the same home.
Most Affordable States to Buy a Home in 2026
West Virginia, Mississippi, Arkansas, Oklahoma, Iowa, Kansas, and Ohio remain the most affordable states for homebuyers in 2026, with price-to-income ratios below 3.5x. In these states, the median mortgage payment consumes less than 25% of median household income — well within the recommended 28% threshold.
| State | Median Price | Median Income | Ratio | Monthly Payment | % of Income |
|---|---|---|---|---|---|
| West Virginia | $145,000 | $52,000 | 2.79x | $870 | 20.1% |
| Mississippi | $165,000 | $49,000 | 3.37x | $990 | 24.2% |
| Arkansas | $175,000 | $53,000 | 3.3x | $1,050 | 23.8% |
| Oklahoma | $185,000 | $56,000 | 3.3x | $1,110 | 23.8% |
| Iowa | $195,000 | $65,000 | 3x | $1,170 | 21.6% |
| Kansas | $200,000 | $64,000 | 3.13x | $1,200 | 22.5% |
| Ohio | $210,000 | $62,000 | 3.39x | $1,260 | 24.4% |
Least Affordable States for Homebuyers in 2026
California and Hawaii remain the least affordable states, with price-to-income ratios exceeding 9x. In California, the median mortgage payment would consume 66.5% of median household income — more than double the recommended maximum. Florida, Colorado, Massachusetts, and New York also exceed the 5x threshold.
| State | Median Price | Median Income | Ratio | Monthly Payment | % of Income |
|---|---|---|---|---|---|
| Hawaii | $830,000 | $84,000 | 9.88x | $4,980 | 71.1% |
| California | $785,000 | $85,000 | 9.24x | $4,710 | 66.5% |
| Colorado | $545,000 | $82,000 | 6.65x | $3,270 | 47.8% |
| Florida | $410,000 | $63,000 | 6.51x | $2,460 | 46.9% |
| Massachusetts | $580,000 | $90,000 | 6.44x | $3,480 | 46.4% |
| New York | $450,000 | $75,000 | 6x | $2,700 | 43.2% |
The Affordability Gap: What Buyers Actually Need to Earn
To afford the median-priced U.S. home ($412,000) at current rates while keeping payments under 28% of income, a household needs to earn at least $106,000 per year. The actual median household income is $79,500 — creating a $26,500 income gap, or requiring buyers to spend 37% of income on housing.
Income Required to Afford Median Home by State (Selected)
What Buyers Can Do: Strategies for an Unaffordable Market
1. Use Down Payment Assistance Programs
Over 4,200 DPA programs exist nationwide, offering grants, forgivable loans, and subsidized rates. Many go unused.
Find DPA Programs →2. Explore Government-Backed Loans
FHA loans (3.5% down, 580 credit), VA loans ($0 down for veterans), and USDA loans ($0 down in rural areas) expand access.
Compare Loan Types →3. Consider Relocating to Affordable Markets
The 7 most affordable states have median payments under $1,200/month. Remote work has made geographic arbitrage viable for many.
See Affordable States →4. Improve Your Credit Score Before Applying
Each 40-point credit score increase can save 0.25-0.50% on your rate, translating to $30,000-$60,000 over the life of a 30-year mortgage.
Credit Score Guide →5. Compare Rates from Multiple Lenders
Rates can vary by 0.5%+ between lenders. Getting quotes from 3-5 lenders can save $20,000-$50,000 over the loan term.
Compare Rates Now →Find Out What You Can Afford
Compare personalized rates from top lenders and see your real buying power.
Get Pre-Approved TodayFrequently Asked Questions
What is the most affordable state to buy a home in 2026?
West Virginia, with a median home price of $145,000 and a price-to-income ratio of 2.79x. Monthly mortgage payment is $870, consuming 20.1% of median income.
What is the least affordable state in 2026?
Hawaii, with a median price of $830,000, a 9.88x ratio, and $4,980/month payment consuming 71.1% of median income. California is close behind at 9.24x.
What percentage of income should go to mortgage?
The standard recommendation is no more than 28% of gross income (the 28/36 rule). Our study found 31 states now exceed this threshold at median prices and incomes.
How many Americans can afford a median-priced home?
Only 38% can comfortably afford the median home in their state (under 28% of income), down from 52% in 2019 — meaning roughly 45 million additional households are priced out.
How to Cite This Study
This research is published under the Creative Commons Attribution 4.0 (CC BY 4.0) license. You may share, adapt, and cite this data with proper attribution.
Mortgage-Info.com Research. "Mortgage Affordability Crisis 2026: 50-State Study." February 10, 2026. https://mortgage-info.com/blog/mortgage-affordability-crisis-2026-50-state-studyMedia inquiries: contact@mortgage-info.com