The Average Income Required to Own a Home in Michigan

Part of the American dream is to own a home, and there are plenty of people across the country who would love to make that happen. But, housing prices have been high for years now, and mortgage rates aren't low right now, either, making it difficult for some to find that dream home. While prices have been down this year over what was expected for the housing market in 2025, it's still a pretty penny to purchase a home, especially if your taste is more upscale. Now, a new study sheds light on how much income is needed to purchase a home in each state, and it's interesting.

The crew at Realtor.com has a new feature out about the cost of a home in each state. In the piece, they note that "even as the summer housing market is gradually turning more buyer-friendly, the typical American still does not earn enough to keep up with monthly mortgage payments without becoming house-poor." That varies per state, and overall, Realtor.com notes that it's "moderately edged down compared with the end of last year," so it is moving towards a more home buyer-friendly market.

When it comes to the cheapest place in America to buy a home, it's Iowa. In the Hawkeye State, home prices were roughly $150,000 below the national median in July, according to their research.

Now, what about Michigan? According to the study, the median income needed to buy a home in the state is $84,000. It's one of the less expensive states to reside in compared to some of the pricier areas of the country.

According to Redfin, as of June 2025, there were 2,111,444 residential homes for sale in the United States. The market is still competitive but not as much as it was a year ago. Redfin notes that in June 2025, 31% of homes in the U.S. sold above list price, down 4.1 points year over year. "There were only 21.5% of homes that had price drops, up from 17% of homes in June last year," Redfin notes, adding that there was also a "99.3% sale-to-list price, down 0.59 points year over year."