For much of the last several decades, there was a time when people started a family and bought a home. The rate on a 30-year fixed-rate mortgage was below 5% most years since 2009. The dream of owning a house was attainable for many middle-class Americans. As mortgage rates hit 7% in the last two years, that dream has ended for many. These people often end up renting.
According to new research, the states with the lowest cost of living and where people have the lowest average incomes are the ones where the largest percentage of the population owns a home. Census data show that 77% of the adults in West Virginia own a home, the highest among all states. It has the second-lowest average personal income at $52,585. This is the cheapest state in which to buy a house.
CNN looked at these figures to come up with a reason. The most likely one is that states without large cities tend to have less competition for houses. New York has an ownership rate of 53% at the other end of the homeownership spectrum. It has the sixth-highest income at $79,581. A large part of the population lives in and around New York City, where the population is dense, and the competition for homes that go on the market tends to be high, which drives up prices. It is a good theory, but CNN can’t prove it beyond a reasonable doubt.
There is a second theory. Big cities attract younger people who are either transient or lack the income to buy a home. Once again, this appears to be a good reason, but there is not enough data to prove it.
Finally, without insulting West Virginia, it is not a place many people would like to live. It has the fourth highest poverty rate in America at 15.8%. According to the Census, it is one of only eight states that lost population between 2022 and 2023.
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