Most 'House Rich' States: See Where PA Ranks For Home Affordability

PENNSYLVANIA —People have a better chance to achieve their dream buying a home in Pennsylvania than in most other states, according to a recent study on home ownership and affordability. So, would the Keystone State considered to be “house rich?”

This study, by national home improvement company All Star Home, looks at homeownership rates and housing affordability in all 50 states. They use the term “house rich” to describe states where a larger percentage of residents own their homes, and where housing is more affordable based on the median income.

All Star Home used the most recent U.S. Census Bureau data, comparing the median value of owner-occupied housing units and the median household income in each state to calculate a home-value-to-income ratio. This helps homebuyers understand how much of their annual income they’d need to invest into purchasing a home.

Then, the study team incorporated the rate of people who own their homes into the home-value-to-income ratio, and multiplied it by the rate of non-owner occupied housing (rented or vacant residences) to get a score for the actual level of home ownership in the area.

“A low score indicates that a location is house rich, wherein housing is not only affordable but also where a majority of the populace reside in homes they own,” the study authors explained.

According to the study, about two-thirds of housing units nationwide are owner-occupied, and the median home-to-income ratio is 3.33.

In Pennsylvania, 69.2 percent of homes are occupied by their owners, and the median home-to-income ratio is 2.92. All Star Home calculated the state's "house rich" score to be 0.8991 (with a lower score being considered better).

That puts Pennsylvania as the 13th most “house rich” in the nation, their study said.

Census data has the average household income in Pennsylvania at $66,974 while home prices are averaging $254,802 according to Zillow.

All Star Home found that West Virginia is currently the most “house rich” state, with a home-to-income ratio of 2.53 and 74 percent of homes occupied by their owners. Iowa and Michigan were the second most house-rich states.

Meanwhile, California’s high home prices and the fact that close to half of residences are rented or vacant earned it the title of least house-rich state: The study found the debt-to-income ratio in California is 6.82, with an owner-occupied housing unit rate of 55.5 percent. Hawaii and New York were also among the states where “homeownership remains an elusive dream for many due to the high costs associated,” the study said.

Check out the full study from All Star Home here.