Here's How Much You Need To Make To Buy A Home In MN, Study Says

MINNESOTA — It's no secret that buying a home in Minnesota can cost quite a lot of money. A recent study shows just how much income you would need to purchase a median-priced home in the Land of 10,000 Lakes — and that this amount has increased by more than 43 percent in the last five years.

Prospective homebuyers in 30 states and Washington, D.C. now need six-figure incomes to own a home at the typical price in their area, according to Bankrate's 2025 Housing Affordability Study.

Minnesota is among these, the study said.

In January 2020, aspiring homeowners needed about $72,470 to afford a median-priced home. By January 2025, that figure had jumped to $103,823, a more than 43 percent increase, according to the study.

Buying a home in Minnesota

• 2020 Required Income: $72,470
• 2025 Required Income: $103,823
• 5-Year Increase: 43.3 percent
• Median Home Price (2025): $359,100
• Monthly Mortgage Payment: $1,896

This places Minnesota:

• Slightly below the national median home price ($418,489).
• Below the national 5-year increase in required income (49.5 percent).
• But still experiencing a significant affordability squeeze.

In just five years, a Minnesotan now needs $31,353 more annually to afford a median-priced home than in 2020.

Home affordability isn’t just a coastal or Sunbelt issue. It’s deeply impacting the Midwest too.

Despite Minnesota’s relative affordability compared to states like Colorado or California, the increase in required income is making homeownership harder for the middle class.

National outlook

Nationwide, the median sale price for homes this past January was $418,489, with households needing to make $116,986 annually to afford that amount, according to the study.

This is almost a 50 percent increase since early 2020, when the income needed to buy a typical home was $78,236, Bankrate reported.

The income amount takes into account homeowners' insurance, property taxes, and estimated monthly mortgage payments along with median home price figures from Redfin.

“Between elevated mortgage rates and the rise of home prices nationally to a record level, many aspiring homebuyers feel like owning a home is out of reach,” said Mark Hamrick, senior economic analyst for Bankrate.

That's a 54.2 percent increase from January 2020, when buyers needed to make $72,470 to afford the typical home.

The 5 states requiring the least income to afford a median home

1. West Virginia: $64,179
2. Iowa: $70,437
3. Ohio: $71,080
4. Mississippi: $72,072
5. Indiana: $72,342

The 5 states requiring the most income to afford a median home

1. District of Columbia: $240,009
2. Hawaii: $235,638
3. California: $213,447
4. Massachusetts: $174,392
5. Colorado: $168,643

Check out the full study here.