Incomes Needed to Buy a Home in Every Part of America
June 27, 2019
In the nation’s priciest areas, you’ll need to be in the top 20% to 30% of household earners to afford a median-priced home, according to a new study by Zoocasa, a real estate website.
Researchers evaluated how much income households need to qualify for a mortgage on a median-priced home in 35 of the largest cities in the U.S. They factored in a 20% down payment, a mortgage rate of 4.5%, and a 30-year fixed-rate mortgage.
The top three most accessible housing markets in the U.S., where median-priced homes are affordable to 80% of the residents, according to the study, are:
- Detroit: A median-priced home of $85,000 could be purchased with an income of $14,772.
- Columbus, Ohio: A $157,000 median-priced home requires a $27,276 income.
- Oklahoma City: The area’s median $170,000 home could be purchased with a $29,544 income.
On the other hand, the least affordable cities tended to be in California. San Francisco topped Zoocasa’s list, with a median home price of $1,418,500, which requires buyers to have an income of $246,432 to buy a home. In San Jose, Calif., buyers would need an income of $177,204 to buy a $1,020,000 median priced home. Buyers in Los Angeles would need to earn $147,672 to buy a median priced home of $850,000.
Updated: October 11, 2019