This is the income you need to afford a $500,000 home in California

Buying a home is a big feat - especially if you do so in California, notorious for being one of the most expensive real estate markets in the U.S. 

To determine the income you need to afford a $500,000 home in every state, GOBankingRates compiled data from Federal Reserve Economic Research (6.90%). The property taxes for each state were also collected and sourced from the Tax Foundation. 

In California, the minimum income needed for a 20% down payment of a $500,000 home is $117,876. That comes out to a monthly mortgage payment of $2,947. You can see how other states compare by tapping or clicking here.


Don't forget - if you're a prospective first-time homebuyer in California, applications are now being accepted for the California Dream For All Shared Appreciation loan program, which gives eligible individuals 20% of the home's cost to help with the down payment.

According to the National Association of Realtors (NAR), existing home sales went up 3.1% in January from December 2023, but sales are down 1.7% from one year ago. The median sale price for the country was at $379,100, which is a record high for January and an increase of 5.1% from just one year ago. 

Aspiring homeowners in the U.S. must earn $110,871 annually to afford a $402,343 home in 2024 – the median price according to Redfin. 

A recent study from Bankrate found aspiring homebuyers in certain states located in the West and Northeast need to earn a minimum salary of $156,000 annually to afford a typical home. California requires the highest annual salary to afford a typical home at $197,057, according to Bankrate’s analysis. 

Mississippi requires the lowest income to afford a home in the U.S. at $63,043.

FOX Television Stations contributed to this report.