Where You Can Afford a Luxury Home for Your Valentine
Realtor.com’s latest report breaks down the income required to afford a luxury home in every state. By analyzing the top 5% of listings and factoring in a 6.89% mortgage rate with a 20% down payment, researchers determined the minimum salary needed under the 30% income rule. Here’s what it takes to buy in the 10 priciest luxury markets:
| State | Luxury Price | Income |
|---|---|---|
| NY | $5,488,510 | $1,155,540 |
| HI | $5,257,761 | $1,106,959 |
| WY | $4,214,250 | $887,260 |
| MA | $4,097,500 | $862,680 |
| CA | $4,045,290 | $851,687 |
| CT | $3,605,344 | $759,062 |
| MT | $3,543,333 | $746,006 |
| CO | $3,337,108 | $702,588 |
| RI | $2,995,000 | $630,561 |
| UT | $2,918,795 | $614,517 |
Ralph’s Take
By defining “luxury” as the top 5% of the market by price, Realtor.com makes cross-market comparisons much easier. The regional differences are striking: New York’s luxury homes average $5.49M (requiring a $1.15M income), while in Kentucky, it’s $824K (requiring a $173K income). If you’re looking for a luxury home and considering where to retire, this could be a great way to narrow down your options.
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