How much income Michigan buyers need to afford a home in 2025

Homeownership is a part of the American dream. It has been the goal of everyone to own a house of their own, with looks of its own. Housing prices have been sky-high for years, and the mortgage rates with it aren't helpful either.

👇 Scroll to Bottom: Comparing Child Care Cost vs 2025 Avg Income in Each State 👇

The market has cooled slightly here in 2025 compared to previous years, but the housing market isn't exactly budget-friendly.

What Is House-Poor?

A new study by Realtor.com suggests that, although trends are slowly becoming more buyer-friendly, most Americans still don't earn enough to comfortably cover their mortgage payments without becoming "house-poor." The term "house-poor" refers to spending so much on your house that you have nothing left for essentials like groceries, gas, or living in general.

The Good News

You may hit a little bit of a break, right here in Michigan, though. The study shows the annual income needed to afford a median-priced home here in Michigan, which is lower than in other states. The minimum is around $84,000, and it puts Michigan on the more affordable side of owning a home.

Michigan Comparatively

If we do some comparison in another state, like Iowa, home prices average $150,000 below the national median in July. While we aren't suggesting leaving Michigan in search of a new home, Iowa may be worth a look if you have an opportunity there.

The housing market is still very competitive, but it is slowly becoming more forgiving. In fact, Redfin reported that as of June 2025, there were over 2.1 million homes on the market nationwide. About 31% were sold above asking price, which is down from this time last year.