The average house price has been rising rapidly nationwide, until recently. According to the Federal Reserve Bank of St. Louis, the median home sales price is $436,800. That's an increase of $3,700 from just a year ago but a drop of $42,700 from the last quarter of 2022.
House prices grew quickly from mid-2021 through late 2022, but the market has started to cool off.
Mortgage rates fell significantly in 2020, driving up demand as home buyers looked to take advantage. The COVID-19 pandemic also led to consumers shifting spending to housing and pushed more millennials toward homeownership. Starting in 2022, however, mortgage rates began to rapidly rise and house prices fell in the first quarter of 2023 for the first time since 2020.
Let's take a deeper dive into what average house prices are like across the country.
Key findings
- The median home sales price in the United States is $436,800 as of the first quarter of 2023. That's down 9% from the fourth quarter of 2022 when the median home sales price was $479,500.
- Hawaii is the most expensive state to buy a house, with a median home value of $835,000, according to the Zillow Home Value Index.
- West Virginia is the least expensive state to buy a house, with a median home value of $147,000, according to the Zillow Home Value Index.
Average home price in the United States: $436,800
The median home sales price is $436,800 as of the first quarter of 2023. That's a 32% increase from 2020, when the median was $329,000.
The average cost of a house in the United States has increased over the past four decades. Here's a look at how the median home sales prices have changed over the last 40 years (prices are for Jan. 1 of each year listed unless otherwise specified):
Data source: Federal Reserve Bank of St. Louis.
Between 1980 and 2020 the median home sales price increased by 416%. From 1980 to the first quarter of 2023, home sales prices rose 586%.
The gap between those percentage changes is a function of home prices rapidly rising from 2020 through late 2022. From the first quarter of 2020 to the fourth quarter of 2022, the median home sales price rose 46% from $329,000 to $479,500, among the fastest rate of median home sales price increases in U.S. history.
Typical home price in the United States: $334,000
The Federal Reserve only provides data on home sales prices and does not include state-level data. The Zillow Home Value Index (ZHVI), however, does provide that data. The ZHVI isn't an average, but it represents the typical home value in a given area. In the United States as a whole, the ZHVI is $334,000.
Affordability of housing varies by state. For a look at house prices in each state, the median income by state, and housing affordability, read on.
Typical home price by state
Data source: Zillow (2023).
Typical home price in Alabama: $206,000 (62% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $206,044
- Median household income as a percentage of home value: 26%
Homes in Alabama are relatively affordable. While the median household income in Alabama is 77% of the national median, the typical home value is the ninth lowest in the country, per Zillow.
Typical home price in Alaska: $345,000 (103% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $345,363
- Median household income as a percentage of home value: 23%
Homes in Alaska are valued 3% above the typical national value. That's offset by incomes in Alaska being 12% higher than the national median.
Typical home price in Arizona: $409,000 (122% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $409,038
- Median household income as a percentage of home value: 17%
A single-family home in Arizona is expensive -- 22% more than that typically found in the U.S. Buying a home in Arizona is probably not the most affordable option, given that the median household income in the state is 99% of the national median.
Typical home price in Arkansas: $179,000 (53% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $178,744
- Median household income as a percentage of home value: 29%
The typical home value in Arkansas is the third lowest in the country. Despite the median income in the state being just 75% of the U.S. median, Arkansas still has one of the highest income-to-home-value ratios.
Typical home price in California: $728,000 (218% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $728,134
- Median household income as a percentage of home value: 12%
California has the second highest typical home value in the United States and the second lowest income-to-home-value ratio, despite residents making 22% more than the median U.S. income.
Typical home price in Colorado: $540,000 (162% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $539,640
- Median household income as a percentage of home value: 15%
Homes in Colorado are the sixth most expensive in the nation and the state has the sixth lowest income-to-home-value ratio, despite the median household there being 118% above the national average.
Typical home price in Connecticut: $359,000 (107% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $358,906
- Median household income as a percentage of home value: 23%
Homes in Connecticut are valued slightly above the typical U.S. price, but are still somewhat affordable given its relatively high income-to-home-value ratio.
Typical home price in Delaware: $359,000 (107% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $358,686
- Median household income as a percentage of home value: 20%
Delaware homes are valued 7% above the typical U.S. home, but the median household income in the state is just 2% above the U.S. median. This presents some affordability concerns.
Typical home price in the District of Columbia: $627,000 (188% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $627,158
- Median household income as a percentage of home value: 14%
Washington, D.C. home values are third highest in the nation and its income-to-home-value ratio is the third lowest, despite the median income there being 29% above the national median.
Typical home price in Florida: $383,000 (115% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $383,063
- Median household income as a percentage of home value: 16%
The typical home in Florida is priced 15% higher than the typical U.S. home and the median household income in the state is 10% lower than the median U.S. income, resulting in a low income-to-home-value ratio and generating affordability concerns.
Typical home price in Georgia: $306,000 (92% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $306,278
- Median household income as a percentage of home value: 22%
Georgia homes are not expensive compared to the typical U.S. home, but they aren't all that affordable either due to the below median income in the state.
Typical home price in Hawaii: $835,000 (250% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $834,583
- Median household income as a percentage of home value: 10%
The typical Hawaii single-family home is the most expensive in the country and the least affordable, with a low household income-to-home-value ratio despite the median income in Hawaii being 22% above the national median.
Typical home price in Idaho: $435,000 (130% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $435,374
- Median household income as a percentage of home value: 15%
The typical Idaho house is 30% more expensive than the typical U.S. house. That presents affordability issues, as the median household income in Idaho is 5% below the national median.
Typical home price in Illinois: $236,000 (71% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $236,049
- Median household income as a percentage of home value: 31%
Illinois homes are priced well below the typical U.S. home and are among the most affordable in the country due to the median household income there being slightly above the U.S. median.
Typical home price in Indiana: $223,000 (67% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $222,592
- Median household income as a percentage of home value: 28%
Homes in Indiana are valued 33% below the typical U.S. single family home and they're affordable as well, given that the median household income in Indiana is just 10% below the U.S. median.
Typical home price in Iowa: $200,000 (60% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $200,038
- Median household income as a percentage of home value: 33%
Iowa enjoys the second best household income-to-home-value ratio due to the typical house being 60% of the national price and the median household income being just 6% below the national median.
Typical home price in Kansas: $211,000 (63% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $210,742
- Median household income as a percentage of home value: 30%
Homes in Kansas are 63% of the typical U.S. price and among the most affordable in the country, with an income-to-home-value ratio of 30%.
Typical home price in Kentucky: $190,000 (57% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $190,037
- Median household income as a percentage of home value: 29%
The typical Kentucky home is 43% cheaper than the typical U.S. home. Despite the median household income in Kentucky being 83% of the median U.S. income, the state has a high income-to-home-value ratio.
Typical home price in Louisiana: $183,000 (55% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $182,959
- Median household income as a percentage of home value: 28%
The typical home in Louisiana is valued at $183,000, just 55% of the typical U.S. home value. That leads to a high income-to-home-value ratio, despite the median household income in Louisiana being 25% lower than the national median.
Typical home price in Maine: $351,000 (105% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $351,375
- Median household income as a percentage of home value: 18%
Homes in Maine are typically more expensive than the average U.S. home. With the median household income in Maine being 7% below the national median, the state's income-to-home-value ratio is below average.
Typical home price in Maryland: $388,000 (116% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $387,872
- Median household income as a percentage of home value: 23%
The typical single family home in Maryland is valued at $388,000, 16% above the typical U.S. home price. That's somewhat offset by the median household income in Maryland being 29% above the national median.
Typical home price in Massachusetts: $558,000 (167% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $558,313
- Median household income as a percentage of home value: 16%
Massachusetts has the fifth highest typical home value and among the lowest income to home value despite the median income being 29% above the national median.
Typical home price in Michigan: $219,000 (65% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $218,684
- Median household income as a percentage of home value: 29%
The typical Michigan home is on the affordable side due to low home values and the median income being close to the national median.
Typical home price in Minnesota: $315,000 (94% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $315,122
- Median household income as a percentage of home value: 25%
Minnesota has a typical home value of $315,000, just 6% below the typical national home price. With a median household income 11% higher than the national median, homes there are relatively affordable.
Typical home price in Mississippi: $162,000 (49% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $162,292
- Median household income as a percentage of home value: 30%
The typical home in Mississippi is $162,000, which is 49% of the typical U.S. home price and second lowest in the country. Although the median income is 70% of the U.S. median, the income-to-home-value ratio is sixth highest in the country.
Typical home price in Missouri: $227,000 (68% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $227,347
- Median household income as a percentage of home value: 27%
The typical Missouri home being valued at 68% of the average U.S. house results in an above average income-to-home-value ratio, despite the median household income there being 11% below the national median.
Typical home price in Montana: $428,000 (128% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $427,886
- Median household income as a percentage of home value: 15%
Montana has among the lowest income-to-home-value ratios due to the typical home there being 28% more expensive than the average U.S. home and the median income being 9% below the median U.S. income.
Typical home price in Nebraska: $243,000 (73% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $243,012
- Median household income as a percentage of home value: 27%
The typical home in Nebraska is priced at $243,000, which is 73% of the typical home value in the U.S. The state has a high income-to-home-value ratio as a result.
Typical home price in Nevada: $412,000 (123% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $412,244
- Median household income as a percentage of home value: 16%
The value of an average single family home in Nevada is $412,000, 23% above the typical U.S. home price. That and the median household income being just below the national median generates housing affordability concerns in the state.
Typical home price in New Hampshire: $429,000 (128% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $429,421
- Median household income as a percentage of home value: 21%
New Hampshire's below average income-to-home-value ratio stems from how expensive the typical home is in the state: $429,000.
Typical home price in New Jersey: $452,000 (135% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $451,559
- Median household income as a percentage of home value: 20%
The most densely populated state, a typical single family home in New Jersey is priced by Zillow at $452,000. The median household income in New Jersey is above the U.S. median, but it's not enough net income-to-home-value ratio to be considered affordable.
Typical home price in New Mexico: $280,000 (83.75% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $279,763
- Median household income as a percentage of home value: 19%
While New Mexico has a typical home value lower than the typical U.S. home price, the median household income in the state is also well below the national median, resulting in a low income-to-home-value ratio and raising affordability concerns.
Typical home price in New York: $411,000 (123% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $411,304
- Median household income as a percentage of home value: 18%
The typical home price in New York is $411,000, 123% of the typical U.S. home value. With a median household income just 7% above the national median, the income-to-home-value ratio in New York is low.
Typical home price in North Carolina: $310,000 (93% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $309,861
- Median household income as a percentage of home value: 20%
The typical home price in North Carolina is slightly below the typical national price, as is the median household income there. As a result, the income-to-home-value ratio is in the lower half of the rankings.
Typical home price in North Dakota: $242,000 (73% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $242,261
- Median household income as a percentage of home value: 27%
North Dakota boasts a solid income-to-home-value ratio due to a typical home value being well below the nationwide typical home price and a median household income close to the national median.
Typical home price in Ohio: $206,000 (62% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $205,799
- Median household income as a percentage of home value: 30%
The typical home value in Ohio is the fifth lowest in the country. That along with the median household income being 89% of the U.S. median results in the sixth highest income-to-home-value ratio.
Typical home price in Oklahoma: $188,000 (56% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $188,452
- Median household income as a percentage of home value: 30%
The typical home in Oklahoma is cheap at 56% of the typical U.S. home price. The median income is low, 80% of the national median, but sufficient to make homes in Oklahoma among the most affordable in the country.
Typical home price in Oregon: $485,000 (145% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $485,474
- Median household income as a percentage of home value: 15%
Oregon has the third lowest income-to-home-value ratio, driven by a typical home value that is eighth highest in the country and the median household income there being just 3% higher than the national median.
Typical home price in Pennsylvania: $244,000 (73% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $243,858
- Median household income as a percentage of home value: 28%
Pennsylvania has affordable homes, with the typical home price being 73% of the national value and the median household income being almost even with the national median.
Typical home price in Rhode Island: $414,000 (124% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $413,947
- Median household income as a percentage of home value: 18%
The typical home value in Rhode Island is $414,000 and the median household income there is only 6% above the national median, creating affordability challenges.
Typical home price in South Carolina: $274,000 (82% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $273,976
- Median household income as a percentage of home value: 22%
South Carolina is slightly below the national typical home price and median household income, resulting in an average income-to-home-value ratio.
Typical home price in South Dakota: $284,000 (85% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $284,308
- Median household income as a percentage of home value: 23%
The typical home value in South Dakota is 15% lower than the typical U.S. home value, while the median income in the state is just 5% below the national median. As a result, homes are relatively affordable.
Typical home price in Tennessee: $291,000 (87% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $291,353
- Median household income as a percentage of home value: 20%
The price of a typical home in Tennessee is $291,000, 87% of the typical U.S. home value. A median household income that is 86% of the national median offsets those low housing costs and results in a below average income-to-home-value ratio.
Typical home price in Texas: $294,000 (88% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $294,336
- Median household income as a percentage of home value: 23%
The typical home value in Texas is 12% below the national typical home price. With a median income that is 96% of the national median, the income to home value in Texas is just above average.
Typical home price in Utah: $506,000 (152% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $506,072
- Median household income as a percentage of home value: 16%
The typical home price in Utah is seventh highest in the country at 152% of the typical U.S. home price. The median household income in the state is 14% higher than the median income, so housing in the state is relatively unaffordable.
Typical home price in Vermont: $332,000 (99% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $332,148
- Median household income as a percentage of home value: 22%
The typical home value in Vermont is nearly in line with the typical U.S. home price and the median household income in the state is slightly above the national median, resulting in an average income-to-home-value ratio.
Typical home price in Virginia: $361,000 (108% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $360,873
- Median household income as a percentage of home value: 22%
The typical home value in Virginia is $361,000, slightly higher than the typical U.S. home price. The median household income in the state is 16% higher than the national median, so the income-to-home-value ratio is average.
Typical home price in Washington: $563,000 (168% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $562,936
- Median household income as a percentage of home value: 15%
The typical home price in Washington is fourth highest in the U.S., generating an income-to-home-value ratio that is among the lowest in the country despite the median income in the state being above the national median.
Typical home price in West Virginia: $147,000 (44% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $146,578
- Median household income as a percentage of home value: 35%
West Virginia is the most affordable state to buy a house in, thanks to the typical house there costing just 44% of the typical U.S. house. The income-to-house-price ratio in West Virginia is the highest in the country.
Typical home price in Wisconsin: $263,000 (79% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $262,652
- Median household income as a percentage of home value: 26%
The typical home in Wisconsin is valued at $263,000 and with a median income near the national median, the state boasts an above average income-to-home-value ratio.
Typical home price in Wyoming: $325,000 (97% of typical U.S. price)
- Typical single-family home value in the first quarter of 2023: $325,090
- Median household income as a percentage of home value: 20%
The typical home value in Wyoming is nearly on par with the national typical home price and the median income in the state is slightly below the national median, resulting in an income-to-home-value ratio slightly below average.
How to save when buying a home
With average home prices in the U.S. on the rise, you may want to consider how to save if you're thinking of buying a house. Here are a few ways:
- Take steps to increase your credit score. When applying for a mortgage, home buyers with a FICO® Score of 760 or higher typically qualify for the lowest mortgage rates.
- Save up money for a larger down payment. Putting 20% down means you don't need to pay private mortgage insurance.
- Shop around when choosing a mortgage lender. Be sure to consider the best mortgage lenders. And don't forget to check out online mortgage lenders. Different lenders will offer different APRs, and even a small amount here can result in big long-term savings.
The Ascent also has a mortgage calculator that can help you figure out mortgage payments. You can also try out our house affordability calculator to help you determine how much real estate you can afford.
Sources
- Census Bureau (2022). "S1903 Median income in the past 12 months."
- Joint Center for Housing Studies of Harvard University (2021). "Extraordinary and Unexpected Pandemic Increase in House Prices: Causes and Implications."
- St. Louis Fed (2023). "Median Sales Price of Houses Sold for the United States."
- Zillow (2023). "Housing Data."
