MN Counties With Most Affordable Home Prices: New Data

MINNESOTA — Homeownership, once equated with achieving the American Dream, is farther out of reach for more Minnesota residents than it has been in a decade, according to a new analysis.

NBC News, which conducted the analysis, said the affordability gap for homebuyers is nearing a 10-year high amid high home costs, interest rate hikes and a shortage in the nation’s housing supply. The affordability gap is an estimate of the difference between an area’s median income and payments on a median-priced home in that area.

A home is generally considered affordable if payments on a 30-year fixed-rate mortgage don’t exceed 30 percent of pretax income, according to NBC.

In 2023, the median income for Minnesota workers was $50,888 according to the Bureau of Labor Statistics.

The NBC analysis suggests a person earning that amount of money would be able to afford a home in zero counties across the Twin Cities metro area, and less than half the state overall.

Southwestern Minnesota is the region in the state with the most affordable homes.

NBC noted widespread geographical differences in the affordability gap. A median income of $60,690 in Massachusetts — the top-paying of the states — puts affordable housing out of reach in that state. Nationally, that person could afford to buy a house in 1,618 out of the 2,801 U.S. counties.

A person in Mississippi, which has the lowest median annual income of $37,500, would only be able to afford to buy a house in 531 of 2,801 counties.

Today, a person earning the local median income would be able to afford a home in 60 percent of counties nationwide, compared with 90 percent of counties five years ago, NBC said, adding that the affordability gap is growing even in counties with lower-priced homes.

» Go to NBC and use the slider tool on the map to make your own comparisons.