Is It Harder to Buy a Home Today Than in the 1980s?

Updated: September 9, 2026

Advertising & Editorial Disclosure

Few periods have been as expensive to buy a home as the 1980s, when sky-high mortgage rates nearing 19% made home loans feel insurmountable. Today's home market echoes the 1980s for many. Fueled by pandemic-era recovery spending, the market has pushed home prices to record highs and interest rates to their highest levels in over two decades.

To track how housing affordability has shifted, MoneyGeek compared housing, income and inflation data for all 50 U.S. states between 1980 and 2023. We found that the house price-to-income ratio nearly doubled, from 2.5 in 1980 to 4.4 in 2023. The percentage of income spent on housing costs increased at a slower pace, from 23% in 1980 to nearly 29% in 2023, partly because today's mortgage rates at 6.8% are well below the nearly 19% peak of the early 1980s.

So, is it harder to buy a home today than in the 1980s? The general answer is yes, but it's not universal. Local home prices, mortgage rates, infrastructure and income trends vary, and individual circumstances shape the outcome.

KEY FINDINGS: HOMEBUYING IN THE 1980S VS. TODAY

Nine states more than doubled their house price-to-income ratio between 1980 and 2023, including Massachusetts, which went from 2.4 to 5.7.
Hawaii has the highest house price-to-income ratio today and held the same title in 1980.
North Dakota and Arizona residents pay roughly the same percentage of their income in housing costs today as in 1980 (27%).
California, Texas, Hawaii and Louisiana residents pay over 10 percentage points more now, putting them in housing-cost-burdened territory.
Homeownership rates held steady between 1980 and 2023, with minor changes across most states. Iowa, Nebraska and South Dakota remained the same.
Hawaii had the biggest gains in homeownership rates over the 43-year period. Arkansas had the biggest losses.

Homebuying Struggles: Then and Now

Homebuyers in the 1980s dealt with some of the highest mortgage rates in U.S. history, peaking at 18.6% in October 1981 as the Federal Reserve sought to combat inflation. This led to a sharp decline in home sales, nearly 50% between 1978 and 1982, as high borrowing costs made homeownership unattainable for many. Cuts in federal housing programs also limited new construction and deepened the housing shortage.

Mortgage rates dropped to 6.8% in 2023, well below the double-digit peaks of the early 1980s. But today's buyers deal with record-high home prices and a lean inventory that make homeownership just as hard to afford. The circumstances are different; the affordability problem isn't.

House Price-to-Income Ratio

A house price-to-income ratio compares the median home value to the median household income, a direct measure of housing affordability relative to local earnings. The higher the ratio number, the more unaffordable the housing environment. Nationally, this ratio increased from 2.5 in 1980 to 4.4 in 2023.

Hawaii and California, with the highest house price-to-income ratios at 8.9 and 7.6, remain the least affordable states for homebuying today. Over the last 43 years, the gap between home prices and income has widened most in these two states. Nine states, including Massachusetts and Idaho, have more than doubled their ratios since 1980. West Virginia and North Dakota have seen only minor changes in housing affordability since 1980, with ratios near 3.

Monthly Housing Costs Relative to Income

The U.S. Department of Housing and Urban Development (HUD) considers residents who spend more than 30% of their income on housing to be housing-cost-burdened. The national average is about 29%, but 12 states exceed the 30% threshold.

California and New York residents carry the highest burden today, spending roughly 36% of their income on housing, followed closely by Hawaii at 35%. In 1980, South Dakota led with 28%, with New York close behind at 27%.

Since 1980, Arizona and North Dakota have seen minimal changes in housing costs. Utah and Arkansas saw smaller increases, rising under 3%, while South Dakota recorded the largest decrease (-1%).

Housing Costs per Square Foot

Today, Hawaii has the highest home cost per square foot at $744, followed by California and New York, both over $400. In 1980, Hawaii and California still carried the highest costs at $241 and $173 per square foot (in 2022 dollars), followed by Alaska ($156).

Six states still have average home costs below $150 per square foot. West Virginia is the lowest at $120 and recorded the smallest dollar increase since 1980 at $41. North Dakota and Ohio follow at $50 and $55. In those states, cost per square foot and home prices have tracked more closely than in faster-growing markets.

Homeownership Rates

Today, the states leading in homeownership rates are West Virginia (77%), Delaware (76%) and Mississippi (76%). In 1980, West Virginia led with a homeownership rate of 74%, followed by Michigan at 73% and Idaho at 72%.

Since 1980, Hawaii and Maryland have had the largest gains in homeownership at roughly 10%. The states with the sharpest declines are Arkansas (-5%) and North Dakota (-3%). In 14 states, homeownership was higher in 1980.

Median Household Income Trends

Income is central to homebuying. Higher earnings help families save for a down payment and qualify for a mortgage.

Calculated in today's dollars, the median household income in 1979 was lower than what Americans earn today. Massachusetts and New Hampshire posted the biggest income gains, with 2023 levels exceeding their 1979 inflation-adjusted incomes by over $10,000. Minnesota and North Carolina also cleared that threshold.

Alaska, Wyoming and Michigan are the outliers: their 1979 inflation-adjusted median incomes were more than $10,000 higher than their 2023 levels.

State	2023 Median Household Income	1979 Median Household Income (Adjusted)	10-Year Change (2013 –23)	10-Year Change (1969–79)
Alabama	$62,212	$57,369	45.2%	112.9%
Alaska	$86,631	$106,662	19.9%	115.1%
Arizona	$77,315	$69,032	59.4%	100.6%
Arkansas	$58,700	$51,262	44.9%	128.0%
California	$95,521	$76,566	58.7%	96.1%
Colorado	$92,911	$75,781	58.0%	114.4%
Connecticut	$91,665	$84,263	36.6%	84.6%
Delaware	$81,361	$74,900	40.7%	91.7%
Florida	$73,311	$61,591	59.2%	104.7%
Georgia	$74,632	$63,093	56.0%	104.6%
Hawaii	$95,322	$85,925	40.1%	91.8%
Idaho	$74,942	$64,151	60.2%	104.3%
Illinois	$80,306	$81,090	42.9%	99.1%
Indiana	$69,477	$73,792	46.2%	97.1%
Iowa	$71,433	$70,505	36.8%	113.2%
Kansas	$70,333	$68,671	38.0%	115.9%
Kentucky	$61,118	$58,611	40.8%	113.6%
Louisiana	$58,229	$63,908	31.8%	132.9%
Maine	$73,733	$57,986	57.0%	88.9%
Maryland	$98,678	$85,119	36.1%	100.8%
Massachusetts	$99,858	$73,762	49.6%	83.8%
Michigan	$69,183	$80,679	43.3%	92.3%
Minnesota	$85,086	$74,543	40.2%	102.9%
Mississippi	$54,203	$50,767	42.8%	131.7%
Missouri	$68,545	$65,393	46.1%	103.1%
Montana	$70,804	$64,718	50.7%	107.4%
Nebraska	$74,590	$66,837	45.0%	114.4%
Nevada	$76,364	$76,432	49.1%	91.6%
New Hampshire	$96,838	$71,404	50.8%	96.6%
New Jersey	$99,781	$83,101	42.2%	90.9%
New Mexico	$62,268	$61,503	41.9%	106.5%
New York	$82,095	$69,867	43.1%	79.6%
North Carolina	$70,804	$60,777	54.2%	106.1%
North Dakota	$76,525	$64,185	37.2%	121.3%
Ohio	$67,769	$74,513	40.9%	91.3%
Oklahoma	$62,138	$61,906	36.0%	123.6%
Oregon	$80,160	$70,426	59.5%	102.3%
Pennsylvania	$73,824	$70,845	42.0%	97.5%
Rhode Island	$84,972	$67,559	52.0%	86.8%
South Carolina	$67,804	$61,742	53.5%	115.2%
South Dakota	$71,810	$55,216	46.7%	104.0%
Tennessee	$67,631	$59,354	52.7%	113.3%
Texas	$75,780	$70,123	46.6%	121.7%
Utah	$93,421	$74,165	56.3%	108.3%
Vermont	$81,211	$62,074	54.5%	85.8%
Virginia	$89,931	$73,343	43.5%	110.7%
Washington	$94,605	$77,086	62.0%	101.3%
West Virginia	$55,948	$61,125	35.6%	124.5%
Wisconsin	$74,631	$74,203	45.0%	96.5%
Wyoming	$72,415	$83,915	23.3%	148.8%

10-Year Changes in Median Household Income

Income growth slowed sharply between the two periods. Wyoming's median household income grew 149% from 1969 to 1979, then only 23% from 2013 to 2023, a gap of 126 percentage points. Louisiana saw a similar drop, with growth falling from 133% to 32%.

Tips for Buying in a Tough Housing Market

Get pre-approved for a mortgage
Pre-approval strengthens your offer and signals to sellers that you're a serious buyer. It gives your bid an advantage in competitive markets, even when you're not the highest bidder. It also sets a price ceiling so you know which homes fit your budget.
Make your best offer
In a seller's market, homes sell above the asking price. Bid close to your financial ceiling and avoid low-ball offers, which put you at risk of losing the home to another buyer.
Hire a real estate agent
A real estate agent or HUD-approved housing counselor knows the homebuying process and helps you avoid costly missteps.
Prepare for closing costs
Closing costs range from 2% to 5% of the purchase price, so budget for them from the start. Some sellers will negotiate on closing costs, but plan on covering them yourself to avoid surprises at closing.
Seek down payment assistance
Many states offer down payment assistance programs that reduce how much you need upfront. Check your local housing authority's website for programs you may qualify for.

Methodology

MoneyGeek analyzed housing, income and inflation data from the U.S. Census and Bureau of Labor Statistics (BLS) for all 50 states to understand the homebuying environments in the 1980s and today. We compared across six categories:

Median home value. Data for 2023 comes from the U.S. Census one-year American Community Survey (ACS), while data for 1980 comes from the Decennial Census of Population and Housing.

Median household income. Data for 2023 comes from the U.S. Census one-year American Community Survey (ACS), while data for 1979 comes from the U.S. Census Historical Income Tables. To compare 1979 to 2023, we adjusted the median household income in 1979 to 2023 dollars.

House price-to-income ratio. A measure of housing affordability, calculated by dividing the median home value by the median household income. For the 1980 calculation, we adjusted the median household income in 1979 to 1980 dollars.

Housing costs as a percentage of monthly income. Monthly housing costs divided by monthly income. Housing cost data for 2023 comes from the U.S. Census one-year American Community Survey (ACS), while 1980 data comes from the Census of Population and Housing, accessed through Google Books. Income data comes from the U.S. Census one-year American Community Survey (ACS) for 2023, while data for 1979 comes from the U.S. Census Historical Income Tables. We adjusted the median household income in 1979 to 1980 dollars for this calculation.

Cost per square foot. The 2022 data comes from American Home Shield. For 1980, we calculated the cost per square foot using the median home value in 1980 divided by the average square footage for a home in 1980, then adjusted the value to 2022 dollars using the Consumer Price Index (CPI) for comparison. Per 24/7 Wall St., the average home in 1980 was 1,740 square feet.

Homeownership rate. Data for 2023 comes from the U.S. Census Housing Vacancies and Homeownership (CPS/HVS) survey, while data for 1980 comes from the Decennial Census of Population and Housing.

10-Year Percentage Change in Median Household Income. Data comes from the U.S. Census one-year American Community Survey (ACS) for 2013 and 2023, while data for 1969 and 1979 comes from the U.S. Census Historical Income Tables.

We also used the CPI data from the BLS to adjust historical figures for inflation.

Full Dataset

The table below shows the housing costs, homeownership rates and median household income figures used to compare homebuying conditions in the 1980s and early 2020s.

State	House Price-to-Income Ratio (2023)	House Price-to-Income Ratio (1980)	Monthly Income Spent on Housing (2023)	Monthly Income Spent on Housing (1980)	Cost per Sq. Ft. (2022)	Cost per Sq. Ft. (1980 Adjusted)	Homeownership Rate (2023)	Homeownership Rate (1980)	Median Household Income (2023)	Median Household Income (1979 Adjusted)	10-Year Change in MHI (2013–23)	10-Year Change in MHI (1969–79)
Alabama	3.5	2.2	26.5%	22.8%	$156	$69	73.8%	70.1%	$62,212	$57,369	45.2%	112.9%
Alaska	4.0	2.6	29.6%	18.7%	$228	$156	64.3%	58.3%	$86,631	$106,662	19.9%	115.1%
Arizona	5.3	2.9	27.2%	26.2%	$269	$112	69.7%	68.3%	$77,315	$69,032	59.4%	100.6%
Arkansas	3.3	2.2	26.9%	24.2%	$135	$64	65.9%	70.5%	$58,700	$51,262	44.9%	128.0%
California	7.6	4.1	35.7%	23.8%	$443	$173	55.8%	55.9%	$95,521	$76,566	58.7%	96.1%
Colorado	5.9	3.1	29.6%	22.7%	$280	$131	67.2%	64.5%	$92,911	$75,781	58.0%	114.4%
Connecticut	4.0	2.9	30.8%	22.2%	$238	$134	68.2%	63.9%	$91,665	$84,263	36.6%	84.6%
Delaware	4.4	2.2	25.8%	20.8%	$224	$91	75.7%	69.1%	$81,361	$74,900	40.7%	91.7%
Florida	5.2	2.7	31.9%	24.3%	$265	$92	67.3%	68.3%	$73,311	$61,591	59.2%	104.7%
Georgia	4.3	2.2	27.9%	23.9%	$181	$75	65.5%	65.0%	$74,632	$63,093	56.0%	104.6%
Hawaii	8.9	5.1	34.5%	23.9%	$744	$241	61.8%	51.7%	$95,322	$85,925	40.1%	91.8%
Idaho	5.7	2.6	27.0%	23.0%	$287	$93	71.0%	72.0%	$74,942	$64,151	60.2%	104.3%
Illinois	3.3	2.4	28.5%	22.2%	$182	$108	67.8%	62.6%	$80,306	$81,090	42.9%	99.1%
Indiana	3.3	1.9	23.5%	18.3%	$154	$76	73.3%	71.7%	$69,477	$73,792	46.2%	97.1%
Iowa	3.0	2.1	24.9%	21.9%	$188	$83	71.8%	71.8%	$71,433	$70,505	36.8%	113.2%
Kansas	3.1	2.0	27.9%	21.3%	$136	$77	68.5%	70.2%	$70,333	$68,671	38.0%	115.9%
Kentucky	3.5	2.2	27.2%	22.6%	$156	$70	69.4%	70.0%	$61,118	$58,611	40.8%	113.6%
Louisiana	3.7	2.5	32.2%	21.7%	$150	$88	67.3%	65.5%	$58,229	$63,908	31.8%	132.9%
Maine	4.2	2.4	27.5%	24.3%	$232	$77	75.5%	70.9%	$73,733	$57,986	57.0%	88.9%
Maryland	4.2	2.5	27.0%	21.5%	$235	$119	71.6%	62.0%	$98,678	$85,119	36.1%	100.8%
Massachusetts	5.7	2.4	31.6%	25.5%	$399	$99	61.9%	57.5%	$99,858	$73,762	49.6%	83.8%
Michigan	3.4	1.8	26.2%	20.0%	$179	$80	74.1%	72.7%	$69,183	$80,679	43.3%	92.3%
Minnesota	3.9	2.6	26.5%	22.3%	$197	$108	74.0%	71.7%	$85,086	$74,543	40.2%	102.9%
Mississippi	3.1	2.3	29.2%	23.1%	$130	$64	75.5%	71.0%	$54,203	$50,767	42.8%	131.7%
Missouri	3.4	2.1	25.6%	21.5%	$162	$75	68.7%	69.6%	$68,545	$65,393	46.1%	103.1%
Montana	5.5	2.7	29.7%	23.8%	$325	$95	71.0%	68.6%	$70,804	$64,718	50.7%	107.4%
Nebraska	3.3	2.1	27.6%	23.8%	$169	$78	68.4%	68.4%	$74,590	$66,837	45.0%	114.4%
Nevada	5.8	3.3	29.5%	26.4%	$282	$140	61.2%	59.6%	$76,364	$76,432	49.1%	91.6%
New Hampshire	4.3	2.5	28.5%	25.4%	$267	$98	74.3%	67.6%	$96,838	$71,404	50.8%	96.6%
New Jersey	4.6	2.7	32.2%	24.3%	$267	$123	62.7%	62.0%	$99,781	$83,101	42.2%	90.9%
New Mexico	4.1	2.7	28.9%	23.4%	$182	$92	70.3%	68.1%	$62,268	$61,503	41.9%	106.5%
New York	5.1	2.4	35.5%	27.3%	$421	$93	53.3%	48.6%	$82,095	$69,867	43.1%	79.6%
North Carolina	4.4	2.2	26.7%	23.3%	$214	$74	66.9%	68.4%	$70,804	$60,777	54.2%	106.1%
North Dakota	3.2	2.5	26.5%	27.1%	$139	$90	65.7%	68.7%	$76,525	$64,185	37.2%	121.3%
Ohio	3.2	2.2	26.0%	20.7%	$147	$92	66.6%	68.4%	$67,769	$74,513	40.9%	91.3%
Oklahoma	3.4	2.1	29.5%	21.9%	$168	$73	68.0%	70.7%	$62,138	$61,906	36.0%	123.6%
Oregon	6.0	3.0	31.3%	23.4%	$308	$116	64.1%	65.1%	$80,160	$70,426	59.5%	102.3%
Pennsylvania	3.5	2.0	27.6%	21.0%	$181	$80	71.0%	69.9%	$73,824	$70,845	42.0%	97.5%
Rhode Island	4.8	2.6	30.7%	25.7%	$270	$95	64.4%	58.8%	$84,972	$67,559	52.0%	86.8%
South Carolina	4.0	2.1	26.1%	22.4%	$182	$72	73.0%	70.2%	$67,804	$61,742	53.5%	115.2%
South Dakota	3.7	2.4	27.2%	28.3%	$182	$75	69.3%	69.3%	$71,810	$55,216	46.7%	104.0%
Tennessee	4.5	2.2	26.7%	22.4%	$214	$73	68.9%	68.6%	$67,631	$59,354	52.7%	113.3%
Texas	3.9	2.1	32.8%	22.0%	$195	$80	63.6%	64.3%	$75,780	$70,123	46.6%	121.7%
Utah	5.5	2.9	25.4%	22.8%	$259	$117	70.3%	70.7%	$93,421	$74,165	56.3%	108.3%
Vermont	4.1	2.5	27.0%	24.0%	$233	$86	73.7%	68.7%	$81,211	$62,074	54.5%	85.8%
Virginia	4.3	2.4	27.1%	23.9%	$210	$98	69.1%	65.6%	$89,931	$73,343	43.5%	110.7%
Washington	6.1	2.9	30.4%	20.8%	$336	$122	66.3%	65.6%	$94,605	$77,086	62.0%	101.3%
West Virginia	2.9	2.3	25.9%	21.1%	$120	$79	77.0%	73.6%	$55,948	$61,125	35.6%	124.5%
Wisconsin	3.7	2.4	26.2%	22.8%	$185	$99	69.2%	68.2%	$74,631	$74,203	45.0%	96.5%
Wyoming	4.1	2.6	27.4%	21.0%	$190	$122	74.5%	69.2%	$72,415	$83,915	23.3%	148.8%

About Anja Solum, CEPF

Anja Solum is a certified educator in personal finance and the Data Journalism Manager at MoneyGeek. For over six years, she has produced data analyses and studies for agency and in-house teams across multiple verticals.

Solum holds a bachelor's degree in communication arts from Florida International University. She's passionate about using data to tell compelling, informed stories that empower readers.

Read Full Bio »

Sources

Federal Reserve Bank of St. Louis. "30-Year Fixed Rate Mortgage Average in the United States." Accessed September 9, 2026.
Real Estate News. "Retro Housing Market Stuck in Early ‘80s Time Warp." Accessed September 9, 2026.
U.S. Department of Housing and Urban Development. "1980." Accessed September 9, 2026.