Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Homeownership has been getting more expensive. Housing costs have increased steadily over the years, but that's not the only expense that's going up. Higher housing prices have also translated into higher property taxes and insurance premiums. It's also more expensive if you need to maintain and upgrade your house. This isn't new information, but aspiring home buyers may be shocked to discover that the median income isn't enough to buy a house. This isn't even exclusive to states with high cost of living. Median incomes aren't keeping up with homeownership costs in any state. Don't Miss: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here’s how you can earn passive income with just $100. Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.26/share! How Much You Need vs. How Much You Receive A study from Realtor.com recently revealed that the typical household has to earn $118,530 per year to buy a median-priced home of $402,500. However, the required median income is well above the actual median household income of $80,610 in 2023, according to the U.S. Census Bureau. The typical household income is almost 50% short of how much you need to keep up with housing costs. This figure explains why more people are picking up side hustles and looking for ways to advance their careers. Earning far more money than the average person has become a requirement just to live the American Dream. What Has Created the Gap High interest rates have led to higher mortgage payments. If the Fed continues to cut rates, it can alleviate some of the gap. However, steady inflation has been the main culprit. It's the reason why wages haven't kept up with many hallmark expenses, such as groceries, college tuition, and cars. Trending: It’s no wonder Jeff Bezos holds over $250 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started. Any efforts to stem inflation can make prices more feasible, especially if you combine it with a higher housing supply. Housing shortages primarily affect the coasts, but even in the Midwest, the median income falls below what people need to afford median housing costs.