Back to Data & Guides
Back
When it comes to the cost of living, housing is one of the biggest expenses most people have. This article looks into data surrounding housing and income in the U.S. to see just how much homeowners and renters are spending on housing as a percentage of their income.
The latest data from 2024 shows that the average amount American households spend on housing per month is $2,188, or $26,266 per year. This makes up 25.2% of their total income based on average annual earnings of $104,207 before taxes, and 33.4% of the total household annual expenditure of $78,535. [1] Consumer Expenditure Survey September 2024 https://www.bls.gov/news.release/cesan.nr0.htm
Housing expenditure increased by 3.3% in 2024 compared to the previous year, with the main increase being on owned dwellings (7%) rather than rented properties (5.4%).
There are a number of things that come with paying for housing, aside from just rent or mortgage payments. Let’s take a look at the main expenses that can be included with housing costs.
How to Rent with Bad Credit
Leasing an apartment or home with bad credit can be a challenge, but if you follow the right steps some landlords may be willing to work with you.
Download our guideWhen it comes to renting property, gross rent is the amount of rent stipulated in a lease. As rent is usually paid in monthly installments, the gross rent is the combined amount of monthly payments. According to the Statista Research Department, the figures as of 2024 show that 42.3% of renters paid gross rent, which was 35% or more of their total income. At the other end of the scale, 12.1% of renters spent less than 15% of their income on gross rent.
Source [2] Gross Rent as a Share of Household Income in the U.S. https://www.statista.com/statistics/186732/gross-rent-as-a-percent-of-household-income-in-the-us/
When it comes to renting a house or apartment, the costs can vary from state to state. Let’s take a look at the average monthly rent costs for each state to compare the differences across the U.S.
The state with the lowest average rent is Oklahoma at $1,035 per month, followed by North Dakota at $1,077 per month.
The highest median rent cost was in Massachusetts, where a month’s rent costs an average of $2,837, the second highest rent cost was in New York, at $2,739 per month, followed by Hawaii in third with an average rent of $2,668 per month. [3] Average Rent by State - World Population Review https://worldpopulationreview.com/state-rankings/average-rent-by-state
| State | Average Rent |
|---|---|
| U.S. | $1,674 |
| Alabama | $1,288 |
| Alaska | $1,482 |
| Arizona | $1,575 |
| Arkansas | $1,093 |
| California | $2,587 |
| Colorado | $1,884 |
| Connecticut | $2,044 |
| Delaware | $1,646 |
| District of Columbia | $2,474 |
| Florida | $1,955 |
| Georgia | $1,608 |
| Hawaii | $2,668 |
| Idaho | $1,607 |
| Illinois | $1,944 |
| Indiana | $1,293 |
| Iowa | $1,220 |
| Kansas | $1,243 |
| Kentucky | $1,287 |
| Louisiana | $1,235 |
| Maine | $1,971 |
| Maryland | $1,859 |
| Massachusetts | $2,837 |
| Michigan | $1,346 |
| Minnesota | $1,558 |
| Mississippi | $1,305 |
| Missouri | $1,273 |
| Montana | $1,605 |
| Nebraska | $1,285 |
| Nevada | $1,525 |
| New Hampshire | $2,112 |
| New Jersey | $2,337 |
| New Mexico | $1,389 |
| New York | $2,739 |
| North Carolina | $1,524 |
| North Dakota | $1,077 |
| Ohio | $1,279 |
| Oklahoma | $1,035 |
| Oregon | $1,757 |
| Pennsylvania | $1,730 |
| Rhode Island | $2,129 |
| South Carolina | $1,594 |
| South Dakota | $1,127 |
| Tennessee | $1,494 |
| Texas | $1,449 |
| Utah | $1,597 |
| Vermont | $2,152 |
| Virginia | $1,972 |
| Washington | $2,020 |
| West Virginia | $1,275 |
| Wisconsin | $1,548 |
| Wyoming | $1,332 |
Source: [3] Average Rent by State - World Population Review https://worldpopulationreview.com/state-rankings/average-rent-by-state
The latest available data on mortgage payments from October 2025 shows that a monthly principal and interest payment on a 30-year mortgage is $2,148, costing 30% of the median household income in the U.S. This is a decline from 32% earlier in 2025, and from the peak of 35% in late 2023. [4] October 2025 Mortgage Monitor https://mortgagetech.ice.com/resources/data-reports/october-2025-mortgage-monitor
Household incomes and house prices vary by state across the U.S., depending on a number of economic factors. We’ve broken down the average household income, based on a household of two people, against median house prices for each state to see how they compare.
The highest median house price is in California, at $833,000, which would cost 8.34x the average two-person household income of $99,936.
The state that has the lowest median house price is Iowa at $228,000. The states with the lowest income-to-house price ratio are Iowa, where a median-priced house costs 2.69x average income, Ohio, with a rate of 3.03x income, and North Dakota at 3.03x income.
| State | Median household income (two people) | Median House Price | Median income to house price ratio |
|---|---|---|---|
| State Alabama | Median household income (two people) $72,639 | Median House Price $281,000 | Median income to house price ratio 3.87 |
| State Alaska | Median household income (two people) $99,001 | Median House Price $383,000 | Median income to house price ratio 3.87 |
| State Arizona | Median household income (two people) $85,476 | Median House Price $455,000 | Median income to house price ratio 5.32 |
| State Arkansas | Median household income (two people) $67,338 | Median House Price $253,000 | Median income to house price ratio 3.76 |
| State California | Median household income (two people) $99,936 | Median House Price $833,000 | Median income to house price ratio 8.34 |
| State Colorado | Median household income (two people) $105,627 | Median House Price $582,000 | Median income to house price ratio 5.51 |
| State Connecticut | Median household income (two people) $102,414 | Median House Price $415,000 | Median income to house price ratio 4.05 |
| State Delaware | Median household income (two people) $92,178 | Median House Price $352,000 | Median income to house price ratio 3.82 |
| State District of Columbia | Median household income (two people) $145,335 | Median House Price $643,000 | Median income to house price ratio 4.42 |
| State Florida | Median household income (two people) $81,109 | Median House Price $412,000 | Median income to house price ratio 5.08 |
| State Georgia | Median household income (two people) $81,309 | Median House Price $366,000 | Median income to house price ratio 4.50 |
| State Hawaii | Median household income (two people) $96,845 | Median House Price $743,000 | Median income to house price ratio 7.67 |
| State Idaho | Median household income (two people) $81,103 | Median House Price $485,000 | Median income to house price ratio 5.98 |
| State Illinois | Median household income (two people) $88,824 | Median House Price $286,000 | Median income to house price ratio 3.22 |
| State Indiana | Median household income (two people) $78,886 | Median House Price $255,000 | Median income to house price ratio 3.23 |
| State Iowa | Median household income (two people) $84,634 | Median House Price $228,000 | Median income to house price ratio 2.69 |
| State Kansas | Median household income (two people) $82,770 | Median House Price $279,000 | Median income to house price ratio 3.37 |
| State Kentucky | Median household income (two people) $69,371 | Median House Price $263,000 | Median income to house price ratio 3.79 |
| State Louisiana | Median household income (two people) $69,288 | Median House Price $249,000 | Median income to house price ratio 3.59 |
| State Maine | Median household income (two people) $83,727 | Median House Price $381,000 | Median income to house price ratio 4.55 |
| State Maryland | Median household income (two people) $109,054 | Median House Price $415,000 | Median income to house price ratio 3.81 |
| State Massachusetts | Median household income (two people) $108,534 | Median House Price $615,000 | Median income to house price ratio 5.67 |
| State Michigan | Median household income (two people) $78,404 | Median House Price $249,000 | Median income to house price ratio 3.18 |
| State Minnesota | Median household income (two people) $94,966 | Median House Price $354,000 | Median income to house price ratio 3.73 |
| State Mississippi | Median household income (two people) $64,928 | Median House Price $253,000 | Median income to house price ratio 3.90 |
| State Missouri | Median household income (two people) $79,586 | Median House Price $258,000 | Median income to house price ratio 3.24 |
| State Montana | Median household income (two people) $81,065 | Median House Price $523,000 | Median income to house price ratio 6.45 |
| State Nebraska | Median household income (two people) $89,130 | Median House Price $289,000 | Median income to house price ratio 3.24 |
| State Nevada | Median household income (two people) $83,923 | Median House Price $455,000 | Median income to house price ratio 5.42 |
| State New Hampshire | Median household income (two people) $101,521 | Median House Price $483,000 | Median income to house price ratio 4.76 |
| State New Jersey | Median household income (two people) $102,903 | Median House Price $521,000 | Median income to house price ratio 5.06 |
| State New Mexico | Median household income (two people) $71,105 | Median House Price $357,000 | Median income to house price ratio 5.02 |
| State New York | Median household income (two people) $89,052 | Median House Price $576,000 | Median income to house price ratio 6.47 |
| State North Carolina | Median household income (two people) $80,315 | Median House Price $368,000 | Median income to house price ratio 4.58 |
| State North Dakota | Median household income (two people) $92,605 | Median House Price $281,000 | Median income to house price ratio 3.03 |
| State Ohio | Median household income (two people) $79,491 | Median House Price $241,000 | Median income to house price ratio 3.03 |
| State Oklahoma | Median household income (two people) $73,910 | Median House Price $244,000 | Median income to house price ratio 3.30 |
| State Oregon | Median household income (two people) $88,926 | Median House Price $505,000 | Median income to house price ratio 5.68 |
| State Pennsylvania | Median household income (two people) $83,249 | Median House Price $283,000 | Median income to house price ratio 3.40 |
| State Rhode Island | Median household income (two people) $96,200 | Median House Price $487,000 | Median income to house price ratio 5.06 |
| State South Carolina | Median household income (two people) $77,674 | Median House Price $381,000 | Median income to house price ratio 4.91 |
| State South Dakota | Median household income (two people) $92,469 | Median House Price $320,000 | Median income to house price ratio 3.46 |
| State Tennessee | Median household income (two people) $78,250 | Median House Price $380,000 | Median income to house price ratio 4.86 |
| State Texas | Median household income (two people) $83,037 | Median House Price $338,000 | Median income to house price ratio 4.07 |
| State Utah | Median household income (two people) $92,694 | Median House Price $548,000 | Median income to house price ratio 5.91 |
| State Vermont | Median household income (two people) $94,524 | Median House Price $388,000 | Median income to house price ratio 4.10 |
| State Virginia | Median household income (two people) $97,833 | Median House Price $444,000 | Median income to house price ratio 4.54 |
| State Washington | Median household income (two people) $102,797 | Median House Price $630,000 | Median income to house price ratio 6.13 |
| State West Virginia | Median household income (two people) $65,816 | Median House Price $249,000 | Median income to house price ratio 3.78 |
| State Wisconsin | Median household income (two people) $85,900 | Median House Price $311,000 | Median income to house price ratio 3.62 |
| State Wyoming | Median household income (two people) $82,927 | Median House Price $484,000 | Median income to house price ratio 5.84 |
Sources [5] Median Income Table - Justice.gov https://www.justice.gov/ust/eo/bapcpa/20250401/bci_data/median_income_table.htm [6] Median Home Price by State - World Population Review https://worldpopulationreview.com/state-rankings/median-home-price-by-state
Data note: As a reliable source for a two-person household median income, we used the median income from the Department of Jusstice which is provided by the Census Bureau.
Across the U.S. the home price to median income ratio has changed over time. The end of 2005 saw the peak of the housing bubble which eventually led to the financial crisis of 2008/09. The lowest point was in 2012 when the house price to median income ratio hit 5.73.
The ratio gradually increased up to a high of 8.27 in 2022, the highest since the peak of 8.77 in 2006, but has since fallen to 7.74 as of 2025.
The graph below shows the house price to average income ratio at the end of April of each year.
Source [7] Home Price Median Annual Income Ratio - Long Term Trends https://www.longtermtrends.net/home-price-median-annual-income-ratio/
The term ‘housing cost burden’ is used to describe households that are paying more than 30% of their total income towards housing costs. In more extreme circumstances, households contributing more than 50% of their income to housing costs are said to be severely cost-burdened.
Across the U.S., 31.9% of households are spending more than 30% of their total income on housing costs. In the table below, we can see the percentage of owner-occupied households in the U.S. that were housing cost burdened in each state as of 2023. [8] Explore Housing Cost Burden in the United States - America's Health Rankings https://www.americashealthrankings.org/explore/measures/cost_burden
The state and district with the highest level of housing cost burden using Data from U.S. Census Bureau, American Community Survey, 1-Year Dataset, 2023 is California, where 41.4% of households spend more than 30% of their income on housing, followed by Hawaii (38.7%), and Florida (37.7%).
West Virginia has the lowest levels of housing cost burden, at 20.9%, followed by North Dakota (22.3%), and Iowa (24.3%).
| State | Percentage of households that are housing cost burdened |
|---|---|
| U.S Average | 31.9% |
| California | 41.1% |
| Hawaii | 38.7% |
| Florida | 37.7% |
| New York | 37.4% |
| Nevada | 36.0% |
| Massachusetts | 35.8% |
| New Jersey | 35.6% |
| Oregon | 35.0% |
| Connecticut | 34.7% |
| Colorado | 34.1% |
| District of Columbia | 33.8% |
| Texas | 33.4% |
| Washington | 33.4% |
| Rhode Island | 32.3% |
| Maryland | 31.8% |
| New Hampshire | 31.5% |
| Arizona | 31.0% |
| Georgia | 30.9% |
| Vermont | 30.4% |
| Louisiana | 30.3% |
| Illinois | 29.4% |
| Montana | 28.9% |
| Maine | 28.8% |
| Virginia | 28.8% |
| Utah | 28.3% |
| Alaska | 28.2% |
| Pennsylvania | 28.2% |
| New Mexico | 28.1% |
| Idaho | 28.0% |
| North Carolina | 28.0% |
| Delaware | 27.8% |
| Oklahoma | 27.7% |
| Minnesota | 27.4% |
| Michigan | 27.3% |
| Tennessee | 27.3% |
| Mississippi | 26.7% |
| Kansas | 26.6% |
| Ohio | 26.6% |
| South Carolina | 26.5% |
| Wisconsin | 26.5% |
| Nebraska | 26.4% |
| Wyoming | 26.0% |
| Kentucky | 25.9% |
| Indiana | 25.7% |
| Missouri | 25.5% |
| Alabama | 25.4% |
| Arkansas | 25.2% |
| South Dakota | 24.6% |
| Iowa | 24.3% |
| North Dakota | 22.3% |
| West Virginia | 20.9% |
Source [8] Explore Housing Cost Burden in the United States - America's Health Rankings https://www.americashealthrankings.org/explore/measures/cost_burden
The general advice when it comes to spending on housing is to spend no more than 30% of your gross monthly income on your housing costs - that’s income before taxes and other deductions. [9] What's the Most You Should Pay for Housing? - CNBC https://www.cnbc.com/2024/11/14/how-much-to-spend-on-housing-depending-on-your-salary.html
A look into the average home insurance rate by state in the U.S., the factors that impact these costs, and how you could save money on your home insurance premiums.
This analysis looks at recent rent statistics and reports in the U.S. to give a picture of the rental market and the demographics of renters.
What are the biggest ‘icks’ that put people off when buying or renting a home? See the results of a survey analyzing exactly that here.
Property 