Many Americans struggle to afford a first home, with only 38% of non-homeowner households able to purchase a typical starter home priced at $200,000.
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A new LendingTree analysis finds entry-level homes are becoming increasingly expensive, with some cities now having starter homes that cost over $1 million.
The income gap for non-homeowners is around $7,000, making it challenging to bridge the affordability barrier.
In California, the median non-homeowner household earns $72,900, which is $67,776 less than the $140,676 needed to afford the average $482,000 starter home.
In Rhode Island, only 16.5% of households can afford an entry-level home, making it the nation’s least affordable state for prospective starter-home buyers.
Southern states like Mississippi and West Virginia offer a more affordable path to homeownership for those prioritizing buying a home.
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