N※N

Hawaii Home Values Double the National Average

  //house-home.news-articles.net/content/2026/02/1 .. aii-home-values-double-the-national-average.html
  Published in House and Home on Tuesday, February 17th 2026 at 7:13 GMT by Investopedia
      Locales: California, Texas, UNITED STATES

The Cost of Location: State-by-State Breakdown

The data reveals that owning a home as a 35-44 year old in Hawaii is significantly more expensive than in West Virginia. Hawaii tops the list with a median home value of $940,400, over double the national average. California and Massachusetts follow closely behind at $813,900 and $724,700, respectively. The West Coast and Northeast consistently demonstrate the highest home values, reflecting limited housing supply and strong demand.

Conversely, homeowners in states like West Virginia ($297,400), Wyoming ($285,900) and Mississippi ($306,100) enjoy significantly lower median home values. These states often have lower population densities and more affordable land costs. The disparity between the most and least expensive states is immense, highlighting the critical role location plays in homeownership affordability.

Here's a more detailed look:

• High-Cost States: Hawaii, California, Massachusetts, Washington, Colorado, New Jersey, New York
• Mid-Range States: Texas, Illinois, Virginia, Arizona, North Carolina, Utah, Georgia
• Affordable States: West Virginia, Wyoming, Mississippi, Arkansas, New Mexico, Louisiana

Income Disparities Add to the Pressure

While the national median income for 35-44 year olds is $105,561, this figure also varies considerably by state. Maryland residents in this age group enjoy the highest median income at $148,800, while those in Mississippi earn a median of just $65,700. This income gap further exacerbates the affordability issue. A home that is manageable for a high-earning millennial in Maryland may be completely unattainable for someone with a similar profile in Mississippi.

States with high incomes and high home values present a different kind of challenge - individuals might be able to afford a home, but a significant portion of their income is tied up in housing costs, limiting their ability to save or invest.

The Debt-to-Income Ratio: A Warning Sign

The median debt-to-income (DTI) ratio of 43.4% is a critical indicator of financial strain. This means that, on average, 35-44 year olds are spending 43.4% of their pre-tax income on debt payments - including mortgages, student loans, car loans, and credit card debt. Lenders generally prefer a DTI ratio below 43%, making it harder for many millennials to qualify for a mortgage, even with a decent income.

This high DTI ratio suggests a vulnerability to economic shocks. A job loss or unexpected expense could quickly push households into financial distress. It also limits their capacity to build wealth and achieve other financial goals.

Looking Ahead: Implications and Considerations

These findings suggest that the millennial generation faces a unique set of challenges in the housing market. The combination of high home values, stagnant wages (relative to housing costs), and high debt burdens creates a perfect storm of affordability issues.

Potential solutions include increased housing supply, policies aimed at reducing student loan debt, and financial literacy programs to help millennials manage their finances effectively. The data also highlights the importance of considering location when making housing decisions. Choosing a more affordable state or metropolitan area can significantly improve one's financial outlook. The data analyzed by LendingTree is a crucial snapshot of the housing landscape and will be valuable for policymakers and individuals alike as they navigate the path to homeownership.