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Median Home Prices Outpace "Ideal" Incomes Across America
5 Sep
Summary
- $74,000 considered "perfect salary" but not enough for home in most states
- Median home prices exceed $400,000, far beyond "ideal" income
- Mortgage payments would consume over one-third of "perfect" salary
According to a survey conducted in 2025, the average American considers $74,000 per year to be the "perfect salary" to achieve happiness. This amount is about $12,000 more than the typical U.S. salary, and should be enough to afford $1,800 in monthly rent in most major cities.
However, the survey also found that half of respondents feel their current income is insufficient to support their desired lifestyle, even beyond just housing costs. This sentiment is understandable, as the median price of a new home in the U.S. has surpassed $410,000, and existing homes average over $422,000 as of September 2025.
In fact, even doubling the "perfect salary" to $148,000 would not be enough to purchase a median-priced home in every state. Experts warn that spending more than one-third of one's salary on housing is generally discouraged, but a $2,500 monthly mortgage payment on a $422,000 home would exceed that threshold for the "ideal" $74,000 income. The housing affordability crisis continues to price many Americans out of homeownership, despite their perceived "perfect" earnings.
