Understanding Home Affordability in the U.S.

In the current U.S. rental market, approximately 90% of renters express a desire to purchase a home, but financial constraints remain a significant barrier, according to a CNN study. Home prices have steadily risen, with an increase of 3.4% reported from December 2023 to December 2024, and projections suggest a further 4.1% rise by December 2025, as noted by CoreLogic’s recent analysis.

The median price for existing homes reached $404,500 in September 2024, as reported by the National Association of Realtors, though prices can greatly vary across different regions.

Assessing Your Home Buying Budget

For those considering entering the housing market—around 15% of Americans—understanding what budget can buy is crucial. A recent analysis by GOBankingRates, utilizing data from the Federal Reserve of St. Louis, has compiled insights into the square footage of homes available at common price points across the states.

The findings indicate that a budget of $300,000 can secure as much as 1,500 square feet in 25 states, with West Virginia standing out as the only state where such a budget can procure a home exceeding 2,000 square feet (specifically, 2,185 square feet).

What $300,000 to $500,000 Can Buy You

Here’s a detailed look at the square footage you can expect to purchase in various states given budgets of $300,000, $400,000, and $500,000:

1. West Virginia

• Square Feet for $300,000: 2,185
• Square Feet for $400,000: 2,913
• Square Feet for $500,000: 3,641
• Price per Square Foot: $137
• Housing Cost Index: 61.3

2. Kansas

• Square Feet for $300,000: 1,894
• Square Feet for $400,000: 2,526
• Square Feet for $500,000: 3,157
• Price per Square Foot: $158
• Housing Cost Index: 70.7

3. Alabama

• Square Feet for $300,000: 1,876
• Square Feet for $400,000: 2,501
• Square Feet for $500,000: 3,126
• Price per Square Foot: $160
• Housing Cost Index: 71.4

4. Mississippi

• Square Feet for $300,000: 1,855
• Square Feet for $400,000: 2,473
• Square Feet for $500,000: 3,092
• Price per Square Foot: $162
• Housing Cost Index: 72.2

5. Oklahoma

• Square Feet for $300,000: 1,793
• Square Feet for $400,000: 2,391
• Square Feet for $500,000: 2,988
• Price per Square Foot: $167
• Housing Cost Index: 74.7

Exploring Other States

Additional states provide various options for buyers, particularly within these budget ranges. Notable mentions include:

• Texas: 1,647 sq ft for $300,000
• Ohio: 1,529 sq ft for $300,000
• Georgia: 1,691 sq ft for $300,000
• Pennsylvania: 1,604 sq ft for $300,000
• California: 641 sq ft for $300,000

– indicating the variability in purchasing power by state.

Conclusion

Understanding the square footage you can purchase with your home-buying budget is essential in today’s competitive real estate market. As prices continue to rise, prospective buyers must consider not only their financial limits but also the diverse offerings available across various states. For those looking to make a purchase, each state presents unique opportunities that cater to different budgets and lifestyles.