In a recent article by DailyMail, it was revealed how much earning power is needed to buy a home in the 50 largest cities in the US. This just furthermore exemplifies that renting is the way to go! Keep reading below to find out what the minimum income to buy a home is for your state.
Buying a house is increasingly out of reach in America’s biggest cities, with California home to the four metropolitan areas requiring the highest incomes in the country to make home-ownership affordable.
San Jose topped the list, with residents needing to earn $274,623 a year in order to buy a home, followed by San Francisco ($213,727), San Diego ($130,986) and Los Angeles ($114,908), according to data compiled by HSH.com, a national consumer and mortgage information publisher.
‘The economy is good, but there are just not enough homes for sale,’ said Lawrence Yun, chief economist with the National Association of Realtors in an interview with DailyMail.com. ‘The builders have not been building to adequately meet the rising demand.’
This map illustrates how much one must earn in order to buy a home in each of the 50 largest metropolitan housing markets in America
HSH.com analyzed the 50 most densely populated cities in the U.S. and then calculated monthly principal, interest, property tax and insurance costs to determine what buyers would pay for a 30-year fixed rate mortgage.
Researchers then projected a 20 percent down payment and calculated how much prospective homeowners would need to make in order to hold their total monthly housing payment to no more than 28 percent of their gross income.
The economy is good, but there are just not enough homes for sale. -Lawrence Yun, National Association of Realtors
By those measures, Boston came in fifth place, with wannabe homeowners having to rake in $109,411 annually in order to buy a place of their own.
Seattle came in sixth ($109,275), followed by New York City ($103,235), Washington D.C. ($96,144), Denver, Colorado ($93,263) and Portland, Oregon ($85,369).
HowMuch.net mapped the HSH.com results to illustrate where home buying pain is felt the most severely. Their map reveals three income tiers needed to afford a median home.
By those measures, the West Coast stood out as the most expensive place in the country for home buyers.
The East Coast was considered second-tier, which included major cities further south along the Atlantic Coast, including Miami ($78,337) and Providence, Rhode Island ($75,808).
Continue reading here.