The Necessary Income For Buying in 15 Cities
March 6, 2018
As home prices rise, more buyers are finding they need to earn more to break into some housing markets. SmartAsset, a personal finance resource, recently analyzed the salary residents need to buy a median-priced home in 15 of the nation’s largest cities.
In some cities, buyers may need to bring more than just savings from a paycheck. For example, in three big cities—San Francisco, San Jose, Calif., and New York—buyers need to make more than $110,000 to afford a home (including the mortgage, property taxes, and homeowners insurance), which is nearly double the nation’s median household income of $57,617.
However, owning a home is much more affordable in other cities. Researchers found that in 10 of the 15 cities analyzed, the median household income was sufficient enough to afford the median-priced home. For example, in Indianapolis, after making a 20 percent down payment on a median-priced home, residents only need an annual income of $21,955 to afford their monthly home payments.
Updated: November 21, 2019