It’s not just you: Across the country, prospective homeowners are feeling the squeeze. The median monthly costs for U.S. homeowners with a mortgage have increased to $2,035 per month, according to a recent report from the Census Bureau (1).
So, can a household earning $61,000 per year afford to carry those costs, and more, each month for years on end? The short answer is: For most people, no.
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Generally, experts recommend spending no more than 30% of your monthly income on housing costs, including your mortgage or rent, taxes, insurance, and utilities (2).
A gross annual income of $61,000 works out to $5,083 per month. Median homeownership costs would take up about 40% of that — well over the recommended level. Someone earning $61,000 should try to keep their housing costs to $1,500 per month to stay within the 30% guideline.
While someone earning $61,000 may be able to secure a home loan, taking on $2,000 per month in housing costs could strain your household budget and lead you to feel house poor. You may be technically making your bills each month, and slowly paying down your home loan — but you won’t have enough cash available each month to cover small splurges or save up for emergencies.
Here’s how to avoid that, and tell if you’re truly ready to sign that home loan.
The true monthly cost of homeownership
Median monthly housing costs may have crossed $2,000 (as opposed to $1,960 in 2023), but affordability varies wildly across the country.
For example, homeowners in Hawaii, New Jersey, the District of Columbia, and Massachusetts faced median costs well above $2,700 per month. Those in California and the Washington, D.C. area face eye-watering averages above $3,000 per month (1).
Notably, these costs don’t include maintenance, which can add up significantly for many homeowners — especially if you buy an inexpensive, older home that needs work.
The State of Home Spending report from Angi, a gig-work platform for home maintenance, found that homeowners spent an average of $12,050 on house projects in 2024. When broken out on a monthly basis, that adds around $1,000 per month to the total costs of homeownership, according to the survey of 6,961 U.S. homeowners conducted in November 2024 (3).
While some home projects might be optional, others aren’t. For example, plumbing issues or broken appliances might require an immediate outlay of cash for you to continue living in your house. For that reason, many experts recommend setting aside 1-2% of the purchase price of your home each year for maintenance and repairs (4).
Many homeowners feel the financial pinch of mandatory home repairs. According to a different recent Angi survey, 48% of homeowners reported feeling increased stress from mandatory home repairs and 62% are more concerned about affording maintenance today than they were at the end of 2024 (5).
Can you afford to buy and still be comfortable?
The median household income in the U.S. was $80,610 in 2023, which is meaningfully higher than $61,000 (6).
Households with a median income could technically afford the median housing costs of $2,035 per month without spending more than 30% of their income on housing — but a home in an expensive state like California or New Jersey would likely be out of reach.
It’s also important to remember that households have more than one working adult, and they can share many fixed costs. If you’re on your own and making $61,000, your baseline costs will be relatively higher.
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Ultimately, whether you can afford to purchase a home varies based on your income, the average housing costs in your area, your housing expectations, your credit, and your other costs.
For example, someone with a student loan payment at the average of $536 per month (7) and used car payment at the average of $521 per month (8), home ownership is likely to be out of reach, especially in an expensive market.
If you’re making those debt payments each month, plus bearing the median housing costs of $2,035, that doesn’t leave much left over. Someone earning $80,610 per year would have $3,626 left each month for other expenses. Someone earning a more modest $61,000 would have less than $2,000 per month. And don’t forget, those incomes are calculated before taxes.
According to a recent study analyzing home sale price data from the real estate listings site Redfin, you’d need a household income of $116,986 to comfortably afford the typical home purchase in the U.S (9). In most parts of the country, solo home ownership on an income of $61,000 is going to be very challenging.
What to do if you can’t buy
The good news is that it’s okay to rent. You may have heard the oft-repeated claim that renting is throwing money away, but that’s not true at all. Paying a price, within your budget, to keep a comfortable and safe roof over your head is never a waste. Plus, renting means not having to worry about unexpected repair bills, and maintaining the flexibility to easily move for new opportunities that come your way.
For renters who plan to purchase a home someday, use this time to beef up your financial situation for an eventual home purchase. If possible, opt to rent a space that leaves some breathing room in your budget. You can choose to save aggressively for a down payment, which can help you keep your monthly housing costs more manageable when you do decide to buy.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
U.S. Census (1); NFCC (2); Angi Home Spending Report (3); (Wells Fargo 4); Angi Pulse Report (5); U.S. Census (6); Education Data (7); Experian (8); Bankrate (9)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.