High home prices and elevated mortgage rates have made it impossible for many Americans to purchase a house but in some states, high homeownership rates have been recorded despite the area having lower income levels.
That is according to a recent report from CNN Business, which analyzed Federal Reserve and US Census data. In the analysis, the publication found that states with some of the highest per capita incomes in the nation have the lowest rates of homeownership in the country. New York, for instance, has a 53% homeownership rate despite having an average personal income of $79,581 per capita.
In contrast, West Virginia has a homeownership rate of 77%---the highest of all 50 US states. That is despite only having an average personal income of $52,585 per capita, which is the second lowest in the country.
Part of the reason why homeownership in states with the highest income is low is because those states contain major cities, which attract younger people who are either renting or transient.
"Big cities attract people who are in transition or the growth stage of their lives. They're more interested in renting, or they may be more transient," Mike Simonsen, founder of real estate analytics firm Altos Research, told CNN.
In addition, the states with the highest income are also more likely to attract buyers, leading to biddings and, in turn, higher home prices. This is further exacerbated by strict zoning laws, which also makes land much more expensive and drive up the costs of buying a home higher.
States With Lower Incomes but Highest Homeownership Rates
The five states with the lowest per capita incomes but the highest homeownership rates in the nation, per the report, include:
Mississippi
Income: $48,110
Income Rank: 50
Homeownership rate: 76%
Homeownership rank: 3
West Virginia
Income: $52,585
Income Rank: 49
Homeownership rate: 77%
Homeownership rank: 1
Alabama
Income: $53,175
Income Rank: 49
Homeownership rate: 74%
Homeownership rank: 9
Kentucky
Income: $54,326
Income Rank: 47
Homeownership rate: 69%
Homeownership rank: 21
Arkansas
Income: $54,347
Income Rank: 46
Homeownership rate: 66%
Homeownership rank: 38
