Unlock Homeownership: Salary vs. Down Payment

Purchasing a home remains challenging due to a median price near $410,800 and mortgage rates hovering around a two-decade high of 6.30% as of late 2025. While inflation has increased the cost of everyday goods, the possibility of homeownership is not entirely out of reach.

Financial experts emphasize that where you choose to buy and the size of your down payment critically affect your ability to afford a home. Following the U.S. Department of Housing and Urban Development's recommendation to allocate no more than 30% of gross income to housing expenses is advised to prevent financial hardship.

Calculations reveal that even for a $400,000 home with a 20% down payment, the required salary varies drastically by state, from $139,600 in New Jersey to $132,720 in Hawaii with a lower down payment.