The Gap Between the “Perfect Salary” and Housing Reality

Recent surveys show that many Americans believe an annual salary of about $74,000 is enough to live comfortably. But the housing market tells a very different story. According to Realtor.com, with that income, you could only afford a median-priced home in just two states: West Virginia and Louisiana.

Income vs. Home Prices

As of July 2025, the U.S. median listing price was about $439,450. But with a $74,000 salary, the maximum affordable home price is closer to $285,000. This gap highlights that homeownership isn’t just about income—it’s about structural affordability challenges.

On top of that, insurance and property taxes are becoming heavy burdens. In climate-risk states like Louisiana and Florida, annual insurance premiums can reach several thousand dollars. In places like Ohio, rising property tax delinquency rates show that affordability isn’t just about mortgage payments.

What Buyers Are Experiencing

Surveys suggest that if two people each earn the “perfect salary,” they could afford a median-priced home in 37 states—but only under ideal conditions, such as a 20% down payment. In reality, student loans, healthcare, childcare, and other living costs make this much harder for many families.

To cope, some buyers are:

• Moving to lower-cost areas

• Saving for larger down payments

• Using FHA or VA government-backed loans

• Exploring alternatives like assumable mortgages (taking over a seller’s low-rate mortgage)

  
  

Final Thoughts

For many, the “perfect salary” represents stability—but today’s housing market demands more than income alone. Still, opportunities exist: with the right location, financing strategy, and expert guidance, homeownership is achievable.

If you’re thinking about buying or selling, let’s explore your best options together.

Chicago BDB | Hansang Chul📞 773-717-2227 | 📧 ChicagoBDB@gmail.com