First-time home buyers need a six-figure income in many states. Is Florida one of them?

Lianna Norman, USA TODAY NETWORK - Florida

As most Millennials and older Gen Zers know too well, buying a house is pretty far out of reach for many younger middle class Americans.

The phrase “Millenial House Buying” on TikTok has a roster of videos with millions of likes and views, titled things like “The cost of housing is astronomical” and “Home ownership is a scam!!!”

Confirming this reality for prospective home buyers, a recent study from BankRate found that Americans who want to buy a mid-priced home need a six-figure income.

“A combination of high mortgage rates, rising home prices and low housing inventory over the last two years is pushing homeownership further out of reach for would-be homeowners, especially first-timers,” the study said.

“To afford a median-priced home of $402,343, Americans need an annual income of $110,871, according to a new Bankrate analysis. That’s nearly a 50 percent increase in just the last four years.”

Here’s how much you need to make to comfortably buy a home in Florida, according to BankRate’s report.

What is the most expensive U.S. state to buy a home in?

Here are the five U.S. states where you need the most income to comfortably buy a home and how much you need to make in each state, according to BankRate’s study:

  1. California: annual salary needed to buy a home is $197,057

  2. Hawaii: annual salary needed to buy a home is $185,829

  3. District of Columbia: annual salary needed to buy a home is $167,871

  4. Massachusetts: annual salary needed to buy a home is $162,471

  5. Washington: annual salary needed to buy a home is $156,814

Here are the five U.S. states where you need the least income to comfortably buy a home and how much you need to make in each state, according to BankRate’s study:

  1. Mississippi: annual salary needed to buy a home is $63,043

  2. Ohio: annual salary needed to buy a home is $64,071

  3. Arkansas: annual salary needed to buy a home is $64,714

  4. Indiana: annual salary needed to buy a home is $65,143

  5. Kentucky: annual salary needed to buy a home is $65,186

Cost to buy a house in Florida: What salary do you need in 2024?

While the average salary needed to buy a typical home in Florida in 2024 isn’t as high as California’s nearly $200,000 needed income, it’s close to double what you need to make to buy a typical home in Mississippi.

According to BankRate’s report, you do need to make a six-figure income (around $114,771 a year) to buy a home in Florida in 2024.

That’s $41,808 more than in January 2020, when you only needed to earn around $72,963 each year to become a first-time home buyer in the Sunshine State, according to BankRate’s housing affordability analysis.

That hike in price is consistent with national home affordability data. The annual salary needed to buy a home in the U.S. rose by 50% in more than 20 states since January 2020, the study said.

And Florida (particularly South Florida) has seen a huge influx of new residents since 2020, when the COVID-19 pandemic hit.

“Many people, particularly those living in dense metro areas, flocked to Austin, Texas and Cape Coral, Florida, which offered warmer weather, cheaper and more spacious housing and growing economies with job opportunities,” the report said.

This article originally appeared on Treasure Coast Newspapers: Florida first-time home buyers need to make six figure salary | Study

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