Where your state ranks on housing costs — The most and least expensive revealed

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Aerial view of single family homes line the streets on April 2, 2026 in Thousand Oaks, California. (Photo by Kevin Carter/Getty Images)

According to a new analysis by WalletHub, the cost of buying a home in the United States has climbed sharply in recent years, rising much faster than inflation and pushing homeownership beyond the reach of many Americans. 

Even households that can afford steep mortgage payments are increasingly burdened by additional expenses, including high utility bills, further straining their finances.

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The study examines mortgage and home energy expenses in all 50 states, combining them and comparing the totals to each state’s median household income to identify where Americans spend the most—and least—on housing.

What they're saying:

"Homeowners and home buyers have faced whiplash over the past few years, with housing prices soaring and interest rates fluctuating from historic lows back up to the highest rates in more than a decade," said Chip Lupo, a WalletHub writer and analyst. "In the most expensive state, housing costs can take up around 50% of the median income. In order to manage expensive mortgage payments and other key housing costs, it’s important for homeowners to budget effectively."

Methodology:

To identify the states where residents spend the most and least on housing, WalletHub analyzed three key cost components: rent, mortgage payments and home energy expenses across all 50 states.

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The analysis combined these costs and adjusted the totals based on each state’s median monthly income. Those figures were then used to rank the states from highest to lowest housing cost burden.

States where people spend the most

Dig deeper:

Hawaii

Hawaii ranks as the most expensive state for housing relative to income, with residents spending about 50% of their earnings on mortgage payments and home energy costs. By contrast, residents in states like Iowa spend closer to 17% of their income on housing.

Despite having the fourth-highest median household income in the nation at $100,389, Hawaii’s steep housing and energy costs force residents to devote a disproportionate share of their income to these expenses. The state has the highest mortgage payments and home energy costs in the country, driving its top ranking.

California

California ranks second, with residents spending roughly 43% of their median household income on housing. The state’s median household income is among the highest in the nation at $99,122, underscoring the high cost of living.

Mortgage payments in California are the second-highest in the country, while home energy costs rank sixth, contributing to the state’s overall housing burden.

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Massachusetts

Massachusetts places third, with residents spending about 34% of their income on housing costs. While lower than the shares seen in Hawaii and California, the burden remains significant.

The state has the second-highest home energy costs and the third-highest mortgage payments nationwide. Even with a relatively high median household income of $103,960, these expenses keep Massachusetts among the most expensive states for housing.

Tips for Cutting Housing Costs

What you can do:

• Consider a shorter-term mortgage: Opting for a 15-year mortgage instead of a 30-year loan can significantly reduce the amount paid in interest over time. While monthly payments are higher, the long-term savings can be substantial.
• Strengthen your budget: Careful budgeting helps ensure you can cover housing expenses alongside other financial obligations. Prospective buyers should also prioritize saving for a down payment while managing existing debt.
• Put more money down upfront: A larger down payment can lower total interest costs and may qualify borrowers for better rates. Putting down at least 20% can also help avoid private mortgage insurance.
• Cut back on utility use: Energy costs can add up quickly. Simple steps—like adjusting thermostat settings, limiting water use and turning off unused lights—can help reduce monthly bills.
• Boost your credit score before buying: A higher credit score typically leads to more favorable mortgage rates. Paying bills on time, keeping credit balances low and reviewing credit reports for errors can all help improve your score.