Americans say they would be happy earning $74,000 a year on average, according to a new survey by Talker Research. But in today’s housing market, that “perfect salary” buys a median-priced home in just two states, according to an analysis of the report by Realtor.com®.
Even doubling that ideal salary to $148,000 wouldn’t buy you a house in every state, yet only 19% of survey respondents said they would need six figures to live comfortably.
The gap between what workers say is “enough” and what it actually takes to buy a home lays bare a fundamental challenge of the housing market: Most Americans have reasonable hopes and expectations for their earning and spending, and home prices just don’t fit in.
The real estate reality check
On paper, a $74,000 salary might feel right—especially when considering that the median personal income of U.S. workers was $42,000 in 2023, the most recent data available—but both figures barely get you through the door in today’s housing market.
Assuming a 20% down payment and a 6.56% mortgage rate, a homebuyer earning the “perfect salary” could afford a median-priced home only in West Virginia or Louisiana. Everywhere else, that income falls short.
In July 2025 the national median list price was $439,450—well above the $285,000 that a $74,000 earner can reasonably afford.
“Earning the ‘perfect salary’ may still fall short of affording a median-priced home in most states,” says Hannah Jones, senior economic research analyst at Realtor.com. But that changes with a second income, she says.
If two people in a household each earn the “perfect salary,” they can afford a median-priced home in 37 states.
Still, this dual-income math assumes ideal conditions: steady employment, a gold-standard 20% down payment, no added financial strain, and no additional demands on one earner’s time (like child care responsibilities, for example). For many Americans, that’s a stretch in itself.
Why buyers feel stuck, even on a ‘perfect salary’
When looking at how the “perfect salary” stacks up against home prices, it’s easy to see why the math isn’t working for so many would-be buyers.
In Baton Rouge County, LA, the median list price was just under $280,000 in July 2025. Assuming that a “perfect salary” earner follows the 50/30/20 rule and saves 20% of their pretax earnings, they’d need to save for nearly four years for a down payment.
That doesn’t include closing costs, moving expenses, or any necessary repairs. And keep in mind, Louisiana is one of the two states where it’s even possible to purchase a median-priced home with a $74,000 annual salary, excluding any extenuating factors like a large savings.
This disconnect underscores a growing divide in the U.S.: The typical U.S. household earns roughly 46% less than what’s recommended to afford a median priced home. While home prices have pulled back from recent highs, they remain out of reach for many people. And as the gap widens between what homes cost and what households actually earn, affordability challenges are becoming less about temporary market swings and more about a structural imbalance.
The bills that break the dream: insurance and taxes
While most homebuyers are aware of how mortgage rates and elevated home prices are driving up the costs of buying, there are other costs beneath the surface contributing to the affordability crisis.
Insurance premiums have surged, especially in climate-vulnerable states like Louisiana and Florida, creating another layer of financial inviability for homeowners. In New Orleans, for example, the estimated insurance premium for a $231,000 home is over $8,000 annually. That means a homeowner has to pay nearly 4% of the home’s value every year to stay insured.
Property taxes have also emerged as a significant barrier, even in markets known for their affordability. In Ohio’s Mahoning County, the tax delinquency rate hit 18%, with 1 in 3 homes in Youngstown behind on their property tax bills. For buyers on a tight budget, these ongoing expenses can tip the scale from “just affordable” to “out of reach.”
As Jones points out, “Property taxes and home insurance costs vary greatly across the U.S., placing an uneven burden on homeowners. Recent research found that insurance costs weigh most heavily on lower-value, high-risk markets, particularly in states like Louisiana and Florida, which could further hurt housing affordability.”
What this means for buyers
For homebuyers earning $74,000, the path to ownership is narrow, but not entirely closed. While a median-priced home is affordable in only two states, that doesn’t mean affordable homes don’t exist elsewhere; they may just be harder to find.
Buyers earning around $74,000 can improve their chances by targeting lower-cost markets or neighborhoods within their state. Savings set aside for a larger down payment can also help stretch budgets further. In some cases, assumable mortgages—which allow buyers to take over a seller’s existing loan at a lower rate—may provide relief from today’s higher borrowing costs.
And for those who qualify, government-backed loans such as FHA or VA loans can also make ownership more attainable by reducing down payment requirements or offering more flexible credit standards.
When ‘enough’ isn’t enough
The idea of a “perfect salary” taps into something simple: Most Americans don’t expect luxury—they just want stability. But the housing market no longer rewards modest expectations. A paycheck that feels comfortable for everyday life still collapses under the weight of home prices, insurance premiums, and property taxes.
That mismatch matters beyond individual households. As affordability continues to slip out of reach, it reshapes where people live, how long they rent, and what kind of wealth they’re able to build over time. Until housing costs realign with wages—or wages catch up—the “perfect salary” will remain just that: an aspiration, not a guarantee of homeownership.