For much of the last several decades, many Americans saw starting a family and buying a home as integral parts of the American Dream. With the 30-year fixed-rate mortgage remaining below 5% most years since 2009, homeownership was within reach for many middle-class families. However, as mortgage rates have surged to 7% in the past two years, this dream has become unattainable for many, leading them to rent instead.
Recent research indicates that states with the lowest cost of living and lowest average incomes have the highest homeownership rates. Census data reveals that 77% of adults in West Virginia own a home, the highest rate among all states. West Virginia also has the second-lowest average personal income at $52,585 and is the most affordable state to buy a house.
CNN analyzed these figures and proposed a likely explanation: states without large cities experience less competition for houses. Conversely, New York, with a homeownership rate of 53%, stands at the opposite end of the spectrum. It has the sixth-highest average income at $79,581, and a significant portion of its population resides in and around densely populated New York City. High competition for homes in such areas drives up prices, making homeownership more challenging. While this theory is plausible, CNN admits it cannot be proven conclusively.
A second theory suggests that big cities attract younger, more transient individuals who may lack the financial means to purchase a home. This also seems like a reasonable explanation, but again, there is insufficient data to confirm it.
Lastly, considering West Virginiaβs appeal, itβs important to note that it is not a highly sought-after place to live. With the fourth-highest poverty rate in America at 15.8%, according to the Census, West Virginia is one of only eight states that lost population between 2022 and 2023.
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Matt Pinner is a dedicated journalist for WVPrepBB.com, specializing in USA and crime news. With a keen eye for detail and a passion for uncovering the truth, Matt brings timely and insightful reporting to his readers. His work on WVPrepBB.com keeps the community informed and engaged with the latest developments in national news and criminal justice.
