1. Nevada
In Nevada, home prices have soared roughly 162% from 2010 to 2022, while wages grew only about 47%—a clear case of real estate galloping far ahead of earnings. The state’s boom, especially in areas like Las Vegas and Reno, has left average income earners lagging behind. When home prices climb more than three times faster than wages, affordability suffers. Nevada thus stands as a stark illustration of housing costs outrunning pay by decades of growth.
It’s not just a flash boom—it’s sustained regional real estate inflation with wages left in the dust. As locals scramble to keep pace, the gap becomes a daily reality for workers and buyers. That persistent divergence is why Nevada makes the list. It’s a cautionary tale of earnings being overwhelmed by housing markets.
2. Arizona
The sun-soaked state of Arizona has seen home prices explode—over the last 40 years, they’ve surged by more than 500%, turning once-affordable Phoenix into a place demanding a six-figure income just to keep up. Wages, by contrast, have barely budged, creating a yawning gap between what people earn and what homes cost. That-staggering imbalance makes Arizona a headline example of pricing overtaking paychecks. The decades-long divergence here is impossible to ignore.
Living in Arizona now means confronting how slow wage growth hasn’t kept pace with aggressive home price inflation. What once was a budget-friendly market has transformed into one with housing costs massively outstripping income. It’s a textbook case of long-term disparity between earnings and asset prices. That’s why Arizona earns its spot on this list.
3. California
California’s housing market has been notorious: from around 1970 onward, restrictive zoning and limited new construction caused median home values to climb dramatically—by 2016, they were more than twice the national figure. Yet incomes haven’t kept up—what was once a path to middle-class stability has all but closed. This long-running mismatch between access and income puts California squarely on this list. Decades of policy decisions here have shaped a statewide affordability crisis.
Despite high average incomes in some areas, the soaring housing costs in California far outpace earnings. Popular regions like the Bay Area, Los Angeles, and San Diego illustrate how wages simply haven’t been able to match the relentless appreciation of property. The result is a persistent chasm between what people earn and what homes cost. California’s history makes it a perpetual example of prices—yes, even decades ago—outstripping wages today.
4. Oregon
Oregon has seen housing prices elevated well above the pace of wage growth, especially as people fled more expensive coastal markets into places like Portland. On average, housing has climbed at a much faster clip than incomes over time. That cumulative pressure makes Oregon a clear inclusion—housing has been winning while paychecks lag behind. It’s a solid example of long-standing imbalance.
Residents of Oregon often talk about the gap between pay and property as if it’s been “just always that way.” But it didn’t start overnight—it unfolded over years, as demand soared and construction lagged. That simmering tension between earnings and costs earns Oregon its spot here. It’s a story of gradual, long-term divergence.
5. Colorado
In Colorado, especially around Denver and the booming mountain towns, home-price growth has consistently outstripped wage increases. The state’s rapid desirability, fueled by lifestyle appeal and economic opportunity, has sent real estate climbing faster than what most workers take home. That trend, unfolding over years, means housing values now significantly exceed earnings. It’s a tip-of-the-iceberg example of how lifestyle demand can drive a decades-long wage-price disconnect.
This isn’t just a metro-area flare-up—it’s statewide. Wages are growing, sure, but home valuations have surged even faster, hitting affordability across the state. That long-term tilt toward real estate inflation makes Colorado a textbook case here. It’s one of those places where locals can feel the growing divide in every housing search.
6. Florida
Florida joins the list because homes there have doubled or tripled in price over the years, while wages remain relatively modest by comparison. Sunshine, retirees, and migration have boosted demand while paychecks haven’t kept pace. The result is a big gap between local incomes and what neighbors pay for homes. That creeping mismatch over time landed Florida here.
Even though it’s not a quiet issue, that wage-to-price gap is now baked into the market across the state—from Miami to Tampa and beyond. When people talk about affordability or lack thereof, what they’re really describing is that gradual but relentless drift of prices ahead of income. Florida has lived that story for decades. Hence, its place on this list.
7. Washington
Washington State—particularly Seattle—features long-term house-price inflation outpacing income growth, driven by booming tech industries and limited housing supply. For years, wages tried to keep up, but home values leaped ahead, forcing affordability issues into focus. That persistent disconnection between what people earn and what homes cost earns Washington its place. It’s another classic example of earnings lagging behind realty trends.
Even outside Seattle, affordability across the state remains challenged, with home-price growth routinely outrunning wage increases. That disparity has only mounted over time, shaping the cost-of-living conversation throughout Washington. The uneven growth story is neither recent nor small—it’s been developing for years. That makes Washington a strong fit for this list.
8. Massachusetts
In Massachusetts—especially around Boston—home prices have climbed steeply over decades while incomes haven’t kept pace at the same pitch. Red-hot demand, limited new construction, and historic cities have pushed housing far ahead of earnings. The long-term gap between what locals earn and what homes cost justifies Massachusetts’s inclusion here. It’s a region where housing has marched forward, and wages have trailed.
The pattern has been consistent: prices climbing faster than paychecks, making affordability an ongoing concern across the state. Whether living inside Route 128 or beyond, people feel the squeeze. That enduring imbalance is why Massachusetts shows up here. Home really has outpaced income by decades.
9. New York
New York, particularly the metro area, has long suffered from housing supply not matching demand—jobs grew much faster than new homes, leaving prices to climb steeply, while wages couldn’t keep up. With that mismatch accumulating over decades, we see a deep gap between local earnings and housing costs. So it’s no surprise that New York lands firmly on this list. The long-term divergence here is both glaring and well-documented.
It’s a tale of homes doubling or tripling in cost, while wages inch upward. And with zoning restrictions and underbuilding, the affordability challenges keep worsening. That enduring pressure on wages versus home prices cements New York’s place among the 16. It’s a reminder of how decades-old policy and growth patterns shape today’s housing dream—or nightmare.
10. Hawaii
Hawaii—particularly Honolulu—ranks among the most expensive housing markets in the U.S., with prices almost doubling the national average, while island wages lag behind high costs of living. Geographic constraints and remote logistics push housing costs sky-high, while typical local incomes fall short of those pressures. That long-established disparity puts Hawaii right here on the list. It’s an obvious example of long-term inequality between earnings and home prices.
Living there feels like paying a permanent premium, that keeps getting more expensive while pay packets don’t rise enough. Over the decades, this affordability rift has only grown. That enduring gulf between housing costs and earnings earns Hawaii a spot. The decades-long imbalance speaks for itself.
11. Connecticut
Connecticut has seen homeownership rates dip and prices rise to alarmingly high medians—well into the mid-hundreds of thousands—while wage growth has remained sluggish in comparison. It’s a New England story of rising housing costs and flat incomes converging over time. That mismatch makes Connecticut’s inclusion logical. This isn’t a flash trend; it’s years in the making.
Even as programs like first-time buyer assistance emerge, local wages haven’t risen enough to make homebuying broadly accessible. Over time, that persistent gap between rising house values and slower income gains has eroded affordability. For that reason, Connecticut is unmistakably part of this nationwide picture. Its decades-old divergence is why it belongs on this list.
12. Maryland
In Maryland, especially near D.C., housing prices have jumped far ahead of wages across many counties—driving up home-price-to-income ratios over time. Even with relatively higher average incomes, the leap in housing costs has outpaced earnings growth. That makes Maryland a clear pick for this list. The result is enduring strain between income and property.
Residents often point out the cost of housing creeping upward faster than paychecks. It’s become part of local lore—homes cost more, wages linger behind. That slow-burning disconnect is why Maryland appears here. It’s a demonstration of housing outpacing wages, year after year.
13. Montana
Montana frequently ranks among the worst states for housing affordability, driven by an influx of new residents and limited supply. As newcomers drive prices upward, wage growth hasn’t kept pace—resulting in homes becoming less affordable over time. That long-term divergence makes Montana a strong candidate for this list. Its affordability decline is steep and sustained.
This isn’t just a recent story—it’s unfolded steadily as rural charm and outdoor access drew big-city movers. Local wages, especially in service or blue-collar sectors, haven’t matched the real estate climb. That sustained gap between income and home value cements Montana’s inclusion. It’s a Montana-specific tale of housing beating wages over years.
14. Idaho
Idaho—especially Boise—has seen housing explode in value as people relocate for affordability, ironically driving home prices far beyond wage growth. The state that once was hailed for its cheap housing is now seeing homes far outpace earnings. That long-term trend makes Idaho a natural addition here. It’s another slice of the U.S. where housing beats wages over time.
Residents often lament how quickly affordability evaporated. Prices climbed faster than local salaries ever could. That’s a decades-long pattern playing out in real time. Idaho’s inclusion reflects that shift from cheap haven to tight squeeze.
15. Texas
Texas has seen prices rise more than twice as fast as wages in many regions, particularly in Austin and Dallas. A state once known for wide-open affordability has turned into one where salaries can’t keep up with the rapid climb of home values. That growing disconnect makes Texas a strong inclusion here. It’s a state-wide story of price-income divergence playing out over years.
Texans frequently point out how home prices keep jumping—much faster than paychecks. That long-term gap is particularly felt by middle-income buyers. It’s a clear case of housing growth outrunning wage growth over time. Hence, Texas belongs on this list.
16. Michigan
In Michigan, once affordable starter homes have now broken $1 million in some markets, despite wage growth being modest. That kind of price spike—where entry-level housing leaps past earnings—marks a growing, long-term affordability issue. It’s a reminder that housing has overtaken wages even in states not traditionally on the expensive list. That’s exactly why Michigan joins the list.
People in Michigan are now feeling the pinch deeply as wages lag behind surging home prices. Starter homes—once entry-level—come with a surprise seven-figure tag in certain areas. That mismatch between paychecks and prices, built up over time, earns Michigan the final spot here. It’s a Great Lakes snapshot of housing costs outpacing incomes for decades.
This post 16 U.S. States Where Housing Prices Have Outpaced Local Wages by Decades was first published on American Charm.
