5 States Where Residents Are Rich — But Still Can’t Afford Homes

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Owning a home is a major milestone that could signal to some that they’ve made it financially. However, having a relatively high income doesn’t always mean that you can afford to buy a home where you live.

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A recent CNN analysis that compared average personal income data from the Federal Reserve and homeownership rates from U.S. Census data for every state found that there is sometimes an inverse correlation between high incomes and homeownership — meaning some of the states with the lowest homeownership rates have some of the highest incomes in the country.

There are a number of factors that could lead to this discrepancy, including a high concentration of cities. Residents of cities may earn more, but there is also typically more competition for homes, which can drive prices up, making them unaffordable for even higher-income earners.

Here’s a look at the states that have the lowest homeownership rates, but relatively high income levels.

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New York

• Homeownership rank: 50

• Homeownership rate: 53%

• Average personal income: $79,581

• Income rank: 6

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©Zillow

California

• Homeownership rank: 49

• Homeownership rate: 56%

• Average personal income: $80,423

• Income rank: 4

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©Zillow

Nevada

• Homeownership rank: 48

• Homeownership rate: 61%

• Average personal income: $65,168

• Income rank: 25

©Zillow

Hawaii

• Homeownership rank: 47

• Homeownership rate: 62%

• Average personal income: $65,151

• Income rank: 26

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Massachusetts

• Homeownership rank: 46

• Homeownership rate: 62%

• Average personal income: $87,812

• Income rank: 1

Data is sourced from CNN and is accurate as of July 9, 2024.

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This article originally appeared on GOBankingRates.com: 5 States Where Residents Are Rich — But Still Can’t Afford Homes