Even the ideal salary can’t afford the American dream.
Most Americans are content to rake in an annual earning of $74,000 on average, according to a new survey by Brooklyn-based market researcher Talker Research, as reported by Realtor.com.
When it comes to homeownership in 2025, however, such a paycheck won’t get you very far.
An analysis of the survey by the outlet revealed a glaring mismatch between America’s reasonable salary expectations and the country’s less-than-accommodating housing market. As it turns out, the “perfect salary” can only afford a median-priced home in a mere two states.
Assuming the buyer is working with a 20% down payment and a 6.56% mortgage rate, Realtor.com found that $74,000 will get you as far as Louisiana and West Virginia.
The two states claim the country’s only housing markets where median prices hover around $285,000 — the ideal price tag Realtor.com calculated for America’s ideal salary. That’s a far cry from the broader US market.
The median home sales price in the US reached $410,800 in the second quarter of 2025, according to the Federal Reserve Bank of St. Louis.
Even with a $74,000 salary, a financially responsible buyer shopping in Baton Rouge County, Louisiana would still need to save for four years to afford the typical down payment. That’s not to mention closing costs, moving expenses and the myriad of pricey headaches that come with homeownership.
Should the ideal salary double to $148,000, Americans would still be hard pressed to find affordable homes in 13 states, according to the analysis.
It’s no wonder that first-time homebuyers are older than ever before.
Shopping with such a salary is a non-starter for the average American. The median income of US workers in 2023 was $42,220, according to recent Federal Reserve data.
High mortgage rates and inflated home prices aren’t the only factors affecting Americans’ ability to own a home. Surging insurance premiums in disaster-prone states like Louisiana and Florida are taking a serious bite out of buyers’ budgets, Realtor.com reported. Rising property taxes in formerly affordable locales in states like Ohio are also increasing the burden of homeownership.
In spite of these challenges, just 19% of survey respondents said they required six figures to live comfortably.
A $74,000 salary doesn’t mean that Louisiana and West Virginia are the end of the line, but it does mean that buyers will need to hunt a little harder in other markets. Despite the current hurdles to homeownership, Americans can look forward to declining home prices as for-sale homes pile up across the country this year.
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