How much do need to earn to buy a moderate home in U.S. major metro areas? A new study looked at 25 big cities across the country and determined the minimum salary you should earn to become a homeowner.
To buy a median-priced house, homebuyers on a budget have it made in Cleveland compared with San Francisco and San Diego in terms of what they need to earn. How much less do they have to earn?
Try 83 percent less, according to a study of mortgage rates and median home prices in 25 cities by mortgage website HSH.com. You would need a salary of $115,510.06 in San Francisco to afford a median-priced home in that city, while buying in Cleveland requires a salary of $19,435.17, according to HSH.
HSH looked at its own 30-year, fixed-rate mortgages and fourth-quarter median home prices from the National Association of Realtors. In their model, they used a 20 percent down payment. They did not account for the cost of taxes, insurance and other expenses to live in the home. HSH also did not look at debt, so their scenario demands good credit.
Salary: $115,510.06. House price: $682,410
Salary: $81,570.40. House price: $476,790.
Salary: $72,126.90. House price: $423,900
|New York City|
Salary: $66,167.27. House price: $386,300.
Salary: $63,673.13. House price: $371,300.
Salary: $62,809.63. House price: $368,000.
Salary: $59,129.86. House price: $344,400.
Salary: $48,122.72. House price: $279,300.
Salary: $45,872.78. House price: $267,500.
Salary: $43,918.66. House price: $254,900.
Salary: $42,832.20. House price: $250,360.
Salary: $41,155.40. House price: $241,700.
Salary: $36,836.47. House price: $214,300.
Salary: $33,800.09. House price: $197,100.
Salary: $32,811.94. House price: $192,700.
Salary: $32,388.90. House price: $187,100.
Salary: $31,298.99. House price: $182,300.
Salary: $29,751.24. House price: $29,751.24.
Salary: $29,305.47. House price: $171,700.
Salary: $28,298.47. House price: $165,800.
Salary: $24,650.88. House price: $142,400.
Salary: $24,390.94. House price: $142,400.
Salary: $22,397.54. House price: $130,300.
Salary: $22,226.95. House price: $128,700.
Salary: $19,435.17. House price: $112,800