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The salary you must earn to buy a home in the 50 largest metros

See below exactly how much salary you would need to earn in order to afford the principal, interest, taxes and insurance payments on a median-priced home in the 50 most populous metropolitan areas.

Key takeaways: Median home prices were measurably higher, sometimes substantially, when comparing the first quarter of 2017 with the second. In the 50 metro markets we include in our analysis, quarter-to-quarter increases ranged from a relatively mild 3.95 percent in the Phoenix metro area to a whopping 23.91 percent in the Detroit region. On a quarterly-comparison basis, 28 metros and the nation as a whole featured double-digit increases in the median price of a home sold during the period.
 
However, always-volatile quarter-to-quarter prices don't reveal the complete picture. Comparing the median price of homes sold in the second quarter of 2016 with second quarter 2Q17 values, no markets saw price decreases, and increases ranged from just 0.89 percent in the Hartford, CT metro area to an outsized 13.06 percent rise in the Seattle, WA metro.
 
With home prices, taxes and insurance costs all rising over time, the income needed to buy a median priced home continues to increase, too. On a year-to-year basis, the median increase in salary needed to keep pace with rising costs was 9.3 percent.
 
Prices are rising quickly for two reasons: Plenty of demand and limited supply. During the quarter, the average number of months of available inventory of existing homes at the running sales rate was just 4.2; optimal levels are reckoned at around six months. Helping to drive demand are mortgage rates that have not only remained lower than expected this year, but actually declined measurably in the second quarter, with the average conforming 30-year FRM reaching 2017 lows at the end of the period.
 
For this quarter, our analysis includes updated cost factors for homeowner's (hazard) insurance premiums.

PLEASE SEE: Metro area definitions

 

Chicago

How much salary do you need to earn in order to afford the principal, interest, tax and insurance payments on a median-priced home in your metro area?

For our calculations, HSH.com uses the National Association of Realtors’ 2017 second-quarter data for median-home prices, national mortgage rate data derived from weekly surveys by Freddie Mac and the Mortgage Bankers Association of America for 30-year fixed rate mortgages and available property tax and homeowners insurance costs to determine the annual salary it takes to afford the base cost of owning a home (principal, interest, property tax and homeowner's insurance, or PITI) in the nation's 50 largest metropolitan areas. 

We used standard 28 percent "front-end" debt ratios and a 20 percent down payment subtracted from the NAR’s median-home-price data to arrive at our figures. We've incorporated available information on property taxes and homeowner’s insurance costs to more accurately reflect the income needed in a given market. Read more about the methodology and inputs on the final slide of this slideshow.

In the commentary section of each slide, we provide data to show how the required salary would change if you were to make a 10 percent down payment instead of a 20 percent. As we work from a fixed median home price, a smaller down payment means both a larger loan amount and the need to pay for private mortgage insurance, which in turn means even higher salary requirements.

Second-quarter analysis: If you think that buying a home is getting more expensive (and quickly), your perception is correct. A solid spring homebuying season that featured plenty of demand but limited supply saw the median value of a home sold in the second quarter of this year some 6.2 percent higher than the same period last year. Some metropolitan areas saw increases more than double this, pleasing home sellers but pinching potential buyers.

Lawrence Yun, NAR chief economist, says home prices in most metro areas continued their fast ascent in the second quarter because supply remained at pitiful levels. "Listings typically flew off the market in under a month (28 days) — and even quicker in the affordable price range — in several parts of the country. With new supply not even coming close to keeping pace, price appreciation remained swift in most markets."

Supply issues don't look to get much better anytime soon, either.

Added Yun, "The glaring need for more new home construction is creating an affordability crisis that needs to be addressed by policy officials and local governments. An increasing share of would-be buyers are being priced out of the market and are unable to experience the wealth building benefits of homeownership."

"Mortgage rates have subsided in recent months, which has only somewhat helped take away some of the sting prospective buyers are experiencing with the deteriorating affordability conditions in many areas," added Yun.

Mr. Yun's statement about lower mortgage rates taking the sting out of rising costs isn't wrong, but perhaps overstated. The 18 basis point decline in the average conforming 30-year FRM was more than overwhelmed by the 6.2 percent increase in the median value of a home sold during the quarter, with the income needed to purchase that home increasing by more than $3,000 despite lower mortgage rates. The decline in rates would have been sufficient to offset a quarter-to-quarter increase of just 2.15 percent in the median price.

Here’s a current look at how much salary you would need to earn in order to afford the principal, interest, taxes and insurance payments on a median-priced home in your metro area.

National

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $255,600

  •  Quarterly change: +10.08 percent
  •  Year-over-year change: +6.19 percent

Monthly payment:  $1,310.40

Salary:  $56,159.89

  •  Quarterly change: $3,044.91
  •  Year-over-year change: +8.5 percent

If a homebuyer wants to buy the National median-priced home with only 10 percent down instead of 20 percent, the required salary increases to $64,827.78

Atlanta

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $204,900

  •  Quarterly change: +12.09 percent
  •  Year-over-year change: +6.72 percent

Monthly payment:  $1,024.18

Salary:  $43,893.29

  •  Quarterly change: $3,007.22
  •  Year-over-year change: +9.5 percent

If homebuyers in the Atlanta metro put 10 percent down instead of 20 percent, the required salary increases from $43,893.29 to $50,681.13.

Austin

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $308,000

  •  Quarterly change: +8.57 percent
  •  Year-over-year change: +6.54 percent

Monthly payment:  $1,632.23

Salary:  $69,952.75

  •  Quarterly change: $3,008.69
  •  Year-over-year change: +8.85 percent

If homebuyers in the Austin metro put 10 percent down instead of 20 percent, the required salary increases from $69,952.75 to $80,004.77.

Baltimore

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $277,000

  •  Quarterly change: +16.58 percent
  •  Year-over-year change: +4.21 percent

Monthly payment:  $1,417.05

Salary:  $60,730.87

  •  Quarterly change: $5,679.33
  •  Year-over-year change: +7.01 percent

If homebuyers in the Baltimore metro put 10 percent down instead of 20 percent, the required salary increases from $60,730.87 to $69,988.77.

Birmingham

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $206,100

  •  Quarterly change: +12.62 percent
  •  Year-over-year change: +5.58 percent

Monthly payment:  $973.40

Salary:  $41,717.33

  •  Quarterly change: $3,172.36
  •  Year-over-year change: +8.03 percent

If homebuyers in the Birmingham metro put 10 percent down instead of 20 percent, the required salary increases from $41,717.33 to $48,645.87.

Boston

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $464,900

  •  Quarterly change: +12.24 percent
  •  Year-over-year change: +6.68 percent

Monthly payment:  $2,298.77

Salary:  $98,518.71

  •  Quarterly change: $6,917.52
  •  Year-over-year change: +9.78 percent

If homebuyers in the Boston metro put 10 percent down instead of 20 percent, the required salary increases from $98,518.71 to $114,102.23.

Buffalo

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $140,000

  •  Quarterly change: +11.2 percent
  •  Year-over-year change: +8.02 percent

Monthly payment:  $933.92

Salary:  $40,024.95

  •  Quarterly change: $1,885.23
  •  Year-over-year change: +7.59 percent

If homebuyers in the Buffalo metro put 10 percent down instead of 20 percent, the required salary increases from $40,024.95 to $44,619.05.

Charlotte

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $234,300

  •  Quarterly change: +11.78 percent
  •  Year-over-year change: +7.43 percent

Monthly payment:  $1,122.63

Salary:  $48,112.64

  •  Quarterly change: $3,341.94
  •  Year-over-year change: +10.5 percent

If homebuyers in the Charlotte metro put 10 percent down instead of 20 percent, the required salary increases from $48,112.64 to $55,886.78.

Chicago

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $264,300

  •  Quarterly change: +15.62 percent
  •  Year-over-year change: +7.26 percent

Monthly payment:  $1,509.23

Salary:  $64,681.50

  •  Quarterly change: $5,098.04
  •  Year-over-year change: +8.44 percent

If homebuyers in the Chicago metro put 10 percent down instead of 20 percent, the required salary increases from $64,681.50 to $73,469.43.

Cincinnati

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $168,600

  •  Quarterly change: +15.96 percent
  •  Year-over-year change: +4.98 percent

Monthly payment:  $932.10

Salary:  $39,947.32

  •  Quarterly change: $3,324.39
  •  Year-over-year change: +6.57 percent

If homebuyers in the Cincinnati metro put 10 percent down instead of 20 percent, the required salary increases from $39,947.32 to $45,543.44.

Cleveland

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $144,800

  •  Quarterly change: +14.83 percent
  •  Year-over-year change: +4.85 percent

Monthly payment:  $852.91

Salary:  $36,553.26

  •  Quarterly change: $2,647.50
  •  Year-over-year change: +6.69 percent

If homebuyers in the Cleveland metro put 10 percent down instead of 20 percent, the required salary increases from $36,553.26 to $41,342.28.

Columbus

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $197,700

  •  Quarterly change: +15.82 percent
  •  Year-over-year change: +8.81 percent

Monthly payment:  $1,064.73

Salary:  $45,631.19

  •  Quarterly change: $3,863.55
  •  Year-over-year change: +10.15 percent

If homebuyers in the Columbus metro put 10 percent down instead of 20 percent, the required salary increases from $45,631.19 to $52,214.15.

Dallas

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $255,200

  •  Quarterly change: +7.91 percent
  •  Year-over-year change: +9.91 percent

Monthly payment:  $1,424.27

Salary:  $61,039.97

  •  Quarterly change: $2,249.84
  •  Year-over-year change: +10.51 percent

If homebuyers in the Dallas metro put 10 percent down instead of 20 percent, the required salary increases from $61,039.97 to $69,301.44.

Denver

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $424,500

  •  Quarterly change: +7.17 percent
  •  Year-over-year change: +7.63 percent

Monthly payment:  $1,898.16

Salary:  $81,349.82

  •  Quarterly change: $3,283.88
  •  Year-over-year change: +11.2 percent

If homebuyers in the Denver metro put 10 percent down instead of 20 percent, the required salary increases from $81,349.82 to $95,341.87.

Detroit

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $179,529

  •  Quarterly change: +23.81 percent
  •  Year-over-year change: +9.34 percent

Monthly payment:  $982.57

Salary:  $42,110.08

  •  Quarterly change: $5,204.93
  •  Year-over-year change: +9.64 percent

If homebuyers in the Detroit metro put 10 percent down instead of 20 percent, the required salary increases from $42,110.08 to $48,105.40.

Hartford

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $239,000

  •  Quarterly change: +14.85 percent
  •  Year-over-year change: +0.89 percent

Monthly payment:  $1,449.82

Salary:  $62,135.07

  •  Quarterly change: $4,375.72
  •  Year-over-year change: +4.32 percent

If homebuyers in the Hartford metro put 10 percent down instead of 20 percent, the required salary increases from $62,135.07 to $70,015.02.

Houston

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $235,600

  •  Quarterly change: +5.98 percent
  •  Year-over-year change: +8.37 percent

Monthly payment:  $1,338.08

Salary:  $57,346.12

  •  Quarterly change: $1,405.31
  •  Year-over-year change: +9.45 percent

If homebuyers in the Houston metro put 10 percent down instead of 20 percent, the required salary increases from $57,346.12 to $64,942.92.

Indianapolis

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $176,200

  •  Quarterly change: +10.68 percent
  •  Year-over-year change: +7.24 percent

Monthly payment:  $873.35

Salary:  $37,429.34

  •  Quarterly change: $2,246.30
  •  Year-over-year change: +10.32 percent

If homebuyers in the Indianapolis metro put 10 percent down instead of 20 percent, the required salary increases from $37,429.34 to $43,201.05.

Jacksonville

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $232,500

  •  Quarterly change: +8.14 percent
  •  Year-over-year change: +8.14 percent

Monthly payment:  $1,203.16

Salary:  $51,564.08

  •  Quarterly change: $2,128.25
  •  Year-over-year change: +9.47 percent

If homebuyers in the Jacksonville metro put 10 percent down instead of 20 percent, the required salary increases from $51,564.08 to $59,662.89.

Kansas City

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $201,700

  •  Quarterly change: +12.68 percent
  •  Year-over-year change: +6.95 percent

Monthly payment:  $1,056.96

Salary:  $45,298.23

  •  Quarterly change: $3,120.43
  •  Year-over-year change: +9.59 percent

If homebuyers in the Kansas City metro put 10 percent down instead of 20 percent, the required salary increases from $45,298.23 to $51,938.27.

Las Vegas

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $252,500

  •  Quarterly change: +5.08 percent
  •  Year-over-year change: +4.21 percent

Monthly payment:  $1,160.57

Salary:  $49,738.56

  •  Quarterly change: $1,158.02
  •  Year-over-year change: +7.25 percent

If homebuyers in the Las Vegas metro put 10 percent down instead of 20 percent, the required salary increases from $49,738.56 to $58,301.32.

Los Angeles

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $514,200

  •  Quarterly change: +5.85 percent
  •  Year-over-year change: +7.13 percent

Monthly payment:  $2,369.07

Salary:  $101,531.66

  •  Quarterly change: $2,960.78
  •  Year-over-year change: +9.96 percent

If homebuyers in the Los Angeles metro put 10 percent down instead of 20 percent, the required salary increases from $101,531.66 to $118,940.61.

Louisville

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $176,700

  •  Quarterly change: +12.05 percent
  •  Year-over-year change: +7.74 percent

Monthly payment:  $897.27

Salary:  $38,454.63

  •  Quarterly change: $2,583.44
  •  Year-over-year change: +10.16 percent

If homebuyers in the Louisville metro put 10 percent down instead of 20 percent, the required salary increases from $38,454.63 to $44,296.87.

Memphis

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $171,500

  •  Quarterly change: +14.26 percent
  •  Year-over-year change: +6.65 percent

Monthly payment:  $885.83

Salary:  $37,964.05

  •  Quarterly change: $3,008.90
  •  Year-over-year change: +9.35 percent

If homebuyers in the Memphis metro put 10 percent down instead of 20 percent, the required salary increases from $37,964.05 to $43,604.94.

Miami

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $335,000

  •  Quarterly change: +5.35 percent
  •  Year-over-year change: +8.06 percent

Monthly payment:  $1,671.69

Salary:  $71,644.01

  •  Quarterly change: $1,674.31
  •  Year-over-year change: +9.25 percent

If homebuyers in the Miami metro put 10 percent down instead of 20 percent, the required salary increases from $71,644.01 to $83,218.80.

Milwaukee

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $246,900

  •  Quarterly change: +11.72 percent
  •  Year-over-year change: +7.35 percent

Monthly payment:  $1,339.73

Salary:  $57,416.85

  •  Quarterly change: $3,499.92
  •  Year-over-year change: +9.81 percent

If homebuyers in the Milwaukee metro put 10 percent down instead of 20 percent, the required salary increases from $57,416.85 to $65,714.71.

Minneapolis

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $259,000

  •  Quarterly change: +10.35 percent
  •  Year-over-year change: +6.85 percent

Monthly payment:  $1,328.97

Salary:  $56,955.98

  •  Quarterly change: $3,185.18
  •  Year-over-year change: +9.18 percent

If homebuyers in the Minneapolis metro put 10 percent down instead of 20 percent, the required salary increases from $56,955.98 to $65,749.89.

Nashville

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $248,500

  •  Quarterly change: +7.02 percent
  •  Year-over-year change: +9.47 percent

Monthly payment:  $1,172.59

Salary:  $50,253.66

  •  Quarterly change: $1,867.25
  •  Year-over-year change: +12.58 percent

If homebuyers in the Nashville metro put 10 percent down instead of 20 percent, the required salary increases from $50,253.66 to $58,505.78.

New Orleans

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $202,000

  •  Quarterly change: +8.37 percent
  •  Year-over-year change: +3.11 percent

Monthly payment:  $1,030.29

Salary:  $44,155.13

  •  Quarterly change: $1,916.12
  •  Year-over-year change: +6.75 percent

If homebuyers in the New Orleans metro put 10 percent down instead of 20 percent, the required salary increases from $44,155.13 to $50,916.06.

New York City

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $414,000

  •  Quarterly change: +7.25 percent
  •  Year-over-year change: +4.7 percent

Monthly payment:  $2,313.19

Salary:  $99,136.79

  •  Quarterly change: $3,253.91
  •  Year-over-year change: +6.93 percent

If homebuyers in the New York City metro put 10 percent down instead of 20 percent, the required salary increases from $99,136.79 to $113,022.77.

Oklahoma City

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $160,200

  •  Quarterly change: +10.64 percent
  •  Year-over-year change: +3.42 percent

Monthly payment:  $883.26

Salary:  $37,854.04

  •  Quarterly change: $2,032.78
  •  Year-over-year change: +7.49 percent

If homebuyers in the Oklahoma City metro put 10 percent down instead of 20 percent, the required salary increases from $37,854.04 to $42,865.30.

Orlando

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $245,000

  •  Quarterly change: +6.52 percent
  •  Year-over-year change: +9.38 percent

Monthly payment:  $1,263.71

Salary:  $54,158.84

  •  Quarterly change: $1,659.55
  •  Year-over-year change: +9.75 percent

If homebuyers in the Orlando metro put 10 percent down instead of 20 percent, the required salary increases from $54,158.84 to $62,681.55.

Philadelphia

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $239,100

  •  Quarterly change: +14.4 percent
  •  Year-over-year change: +2.97 percent

Monthly payment:  $1,323.04

Salary:  $56,701.66

  •  Quarterly change: $4,239.78
  •  Year-over-year change: +5.56 percent

If homebuyers in the Philadelphia metro put 10 percent down instead of 20 percent, the required salary increases from $56,701.66 to $64,702.86.

Phoenix

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $247,300

  •  Quarterly change: +3.95 percent
  •  Year-over-year change: +5.37 percent

Monthly payment:  $1,135.27

Salary:  $48,654.62

  •  Quarterly change: $702.24
  •  Year-over-year change: +9.16 percent

If homebuyers in the Phoenix metro put 10 percent down instead of 20 percent, the required salary increases from $48,654.62 to $56,894.62.

Pittsburgh

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $145,000

  •  Quarterly change: +20.83 percent
  •  Year-over-year change: +3.22 percent

Monthly payment:  $824.35

Salary:  $35,329.29

  •  Quarterly change: $3,714.44
  •  Year-over-year change: +6.66 percent

If homebuyers in the Pittsburgh metro put 10 percent down instead of 20 percent, the required salary increases from $35,329.29 to $40,139.37.

Portland

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $389,100

  •  Quarterly change: +8.11 percent
  •  Year-over-year change: +9.08 percent

Monthly payment:  $1,810.82

Salary:  $77,606.70

  •  Quarterly change: $3,546.96
  •  Year-over-year change: +10.49 percent

If homebuyers in the Portland metro put 10 percent down instead of 20 percent, the required salary increases from $77,606.70 to $90,780.41.

Providence

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $280,400

  •  Quarterly change: +7.52 percent
  •  Year-over-year change: +5.57 percent

Monthly payment:  $1,548.73

Salary:  $66,374.10

  •  Quarterly change: $2,311.60
  •  Year-over-year change: +7.57 percent

If homebuyers in the Providence metro put 10 percent down instead of 20 percent, the required salary increases from $66,374.10 to $75,654.44.

Raleigh

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $278,300

  •  Quarterly change: +11.19 percent
  •  Year-over-year change: +7.53 percent

Monthly payment:  $1,317.50

Salary:  $56,464.35

  •  Quarterly change: $3,742.70
  •  Year-over-year change: +10.77 percent

If homebuyers in the Raleigh metro put 10 percent down instead of 20 percent, the required salary increases from $56,464.35 to $65,730.62.

Richmond

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $254,000

  •  Quarterly change: +8.27 percent
  •  Year-over-year change: +5.66 percent

Monthly payment:  $1,208.95

Salary:  $51,812.36

  •  Quarterly change: $2,372.79
  •  Year-over-year change: +8.56 percent

If homebuyers in the Richmond metro put 10 percent down instead of 20 percent, the required salary increases from $51,812.36 to $60,300.99.

Riverside/San Bernardino

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $342,100

  •  Quarterly change: +4.78 percent
  •  Year-over-year change: +8.43 percent

Monthly payment:  $1,605.09

Salary:  $68,789.53

  •  Quarterly change: $1,411.48
  •  Year-over-year change: +10.86 percent

If homebuyers in the Riverside/San Bernardino metro put 10 percent down instead of 20 percent, the required salary increases from $68,789.53 to $80,362.23.

Sacramento

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $340,000

  •  Quarterly change: +6.35 percent
  •  Year-over-year change: +5.04 percent

Monthly payment:  $1,642.21

Salary:  $70,380.49

  •  Quarterly change: $2,215.55
  •  Year-over-year change: +7.28 percent

If homebuyers in the Sacramento metro put 10 percent down instead of 20 percent, the required salary increases from $70,380.49 to $81,881.98.

Salt Lake City

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $307,900

  •  Quarterly change: +8.11 percent
  •  Year-over-year change: +11.2 percent

Monthly payment:  $1,387.14

Salary:  $59,449.02

  •  Quarterly change: $2,805.68
  •  Year-over-year change: +13.18 percent

If homebuyers in the Salt Lake City metro put 10 percent down instead of 20 percent, the required salary increases from $59,449.02 to $69,801.22.

San Antonio

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $222,600

  •  Quarterly change: +9.87 percent
  •  Year-over-year change: +5.75 percent

Monthly payment:  $1,256.01

Salary:  $53,829.14

  •  Quarterly change: $2,587.58
  •  Year-over-year change: +8.15 percent

If homebuyers in the San Antonio metro put 10 percent down instead of 20 percent, the required salary increases from $53,829.14 to $60,985.08.

San Diego

Mortgage rate:  4.21 percent

  • Quarterly change: -0.14 percent

Home price:  $605,000

  •  Quarterly change: +7.27 percent
  •  Year-over-year change: +2.56 percent

Monthly payment:  $2,727.09

Salary:  $116,875.11

  •  Quarterly change: $5,180.74
  •  Year-over-year change: +6.26 percent

If homebuyers in the San Diego metro put 10 percent down instead of 20 percent, the required salary increases from $116,875.11 to $138,681.02.

San Francisco

Mortgage rate:  4.21 percent

  • Quarterly change: -0.14 percent

Home price:  $950,000

  •  Quarterly change: +16.56 percent
  •  Year-over-year change: +7.27 percent

Monthly payment:  $4,231.30

Salary:  $181,341.49

  •  Quarterly change: $20,202.59
  •  Year-over-year change: +11.39 percent

If homebuyers in the San Francisco metro put 10 percent down instead of 20 percent, the required salary increases from $181,341.49 to $215,598.47.

San Jose

Mortgage rate:  4.21 percent

  • Quarterly change: -0.14 percent

Home price:  $1,183,400

  •  Quarterly change: +10.6 percent
  •  Year-over-year change: +9.07 percent

Monthly payment:  $5,165.15

Salary:  $221,363.63

  •  Quarterly change: $15,807.38
  •  Year-over-year change: +13.29 percent

If homebuyers in the San Jose metro put 10 percent down instead of 20 percent, the required salary increases from $221,363.63 to $261,761.75.

Seattle

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $475,400

  •  Quarterly change: +12.63 percent
  •  Year-over-year change: +13.06 percent

Monthly payment:  $2,189.91

Salary:  $93,853.17

  •  Quarterly change: $7,320.31
  •  Year-over-year change: +13.17 percent

If homebuyers in the Seattle metro put 10 percent down instead of 20 percent, the required salary increases from $93,853.17 to $109,907.05.

St Louis

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $174,000

  •  Quarterly change: +12.33 percent
  •  Year-over-year change: +2.17 percent

Monthly payment:  $951.00

Salary:  $40,757.29

  •  Quarterly change: $2,610.11
  •  Year-over-year change: +5.67 percent

If homebuyers in the St Louis metro put 10 percent down instead of 20 percent, the required salary increases from $40,757.29 to $46,457.96.

Tampa

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $220,200

  •  Quarterly change: +6.12 percent
  •  Year-over-year change: +10.1 percent

Monthly payment:  $1,146.22

Salary:  $49,123.91

  •  Quarterly change: $1,359.10
  •  Year-over-year change: +9.16 percent

If homebuyers in the Tampa metro put 10 percent down instead of 20 percent, the required salary increases from $49,123.91 to $56,805.61.

Virginia Beach

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $239,900

  •  Quarterly change: +16.17 percent
  •  Year-over-year change: +7.58 percent

Monthly payment:  $1,182.55

Salary:  $50,680.78

  •  Quarterly change: $4,796.15
  •  Year-over-year change: +9.76 percent

If homebuyers in the Virginia Beach metro put 10 percent down instead of 20 percent, the required salary increases from $50,680.78 to $58,691.25.

Washington

Mortgage rate:  4.11 percent

  • Quarterly change: -0.18 percent

Home price:  $428,700

  •  Quarterly change: +11.79 percent
  •  Year-over-year change: +5.36 percent

Monthly payment:  $2,068.83

Salary:  $88,664.32

  •  Quarterly change: $6,115.83
  •  Year-over-year change: +8.44 percent

If homebuyers in the Washington metro put 10 percent down instead of 20 percent, the required salary increases from $88,664.32 to $103,198.80.

Alaska

To compile these results, HSH.com calculates the annual before-tax income required to cover the mortgage's principal, interest, property tax and homeowner's insurance payment. We use standard 28 percent "front-end" debt ratios and a 20 percent down payment subtracted from the median-home-price data to arrive at our figures. Loans with less than a 20 percent down payment will incur mortgage insurance, which would in turn increase the required salary and require Private Mortgage Insurance. Results using smaller down payments and including PMI costs are provided on each market's slide.

We utilized the National Association of Realtors 2017 second-quarter data for median home prices. For mortgage data, we create a quarterly average of mortgage rates from survey data published by Freddie Mac (conforming loans) and the Mortgage Bankers Association of America (jumbo loans) for a 30-year, fixed-rate mortgage.

The average mortgage rate information we used was for purchase-money mortgages made to borrowers with good to excellent credit.

Into our calculations, we incorporate metropolitan-area average property tax information using data made available from the Census Bureau's American Community Survey (ACS). We use 2010-2015 ACS 5-year estimates, which are the latest available data.

For homeowner's insurance costs, we use the latest available data for statewide average homeowner insurance premium costs from the Insurance Information Institute (http://www.iii.org), whose mission is to improve public understanding of insurance.

Note: Property taxes and insurance costs are specific to an individual property itself and will be different for any single property in which you may have an interest. Also, if other personal debts exceed 8 percent of one's given monthly gross income, this may increase the salary needed to qualify.

PMI costs used in our calculations are for 30-year fixed-rate mortgages. For conforming loan amounts, these are costs for FICO scores of greater than 740 but less than 759; for jumbo loan amounts, these costs are for FICO scores of 760 or greater. You can calculate mortgage insurance costs for other credit scores, down payment amounts and mortgage types using HSH.com's PMI Cost Calculator.

Data for the Pittsburgh metro area was provided by RealSTATs, a locally owned and operated real estate information company. Home-price data for Detroit was provided by Realcomp II Ltd., Michigan's largest Multiple Listing Service.

Page /53

National data and all 50 metros, sorted alphabetically

How much salary do you need to earn in order to afford the principal, interest, taxes and insurance payments on a median-priced home in your metro area?

Metro Area 30-Year Fixed Mortgage Rate % Change from 1Q17 Median Home Price % Change from 1Q17 Monthly Payment (PITI) Salary Needed
National 4.11% -0.18% $255,600 +10.08% $1,310.40 $56,159.89
Atlanta 4.11% -0.18% $204,900 +12.09% $1,024.18 $43,893.29
Austin 4.11% -0.18% $308,000 +8.57% $1,632.23 $69,952.75
Baltimore 4.11% -0.18% $277,000 +16.58% $1,417.05 $60,730.87
Birmingham 4.11% -0.18% $206,100 +12.62% $973.40 $41,717.33
Boston 4.11% -0.18% $464,900 +12.24% $2,298.77 $98,518.71
Buffalo 4.11% -0.18% $140,000 +11.2% $933.92 $40,024.95
Charlotte 4.11% -0.18% $234,300 +11.78% $1,122.63 $48,112.64
Chicago 4.11% -0.18% $264,300 +15.62% $1,509.23 $64,681.50
Cincinnati 4.11% -0.18% $168,600 +15.96% $932.10 $39,947.32
Cleveland 4.11% -0.18% $144,800 +14.83% $852.91 $36,553.26
Columbus 4.11% -0.18% $197,700 +15.82% $1,064.73 $45,631.19
Dallas 4.11% -0.18% $255,200 +7.91% $1,424.27 $61,039.97
Denver 4.11% -0.18% $424,500 +7.17% $1,898.16 $81,349.82
Detroit 4.11% -0.18% $179,529 +23.81% $982.57 $42,110.08
Hartford 4.11% -0.18% $239,000 +14.85% $1,449.82 $62,135.07
Houston 4.11% -0.18% $235,600 +5.98% $1,338.08 $57,346.12
Indianapolis 4.11% -0.18% $176,200 +10.68% $873.35 $37,429.34
Jacksonville 4.11% -0.18% $232,500 +8.14% $1,203.16 $51,564.08
Kansas City 4.11% -0.18% $201,700 +12.68% $1,056.96 $45,298.23
Las Vegas 4.11% -0.18% $252,500 +5.08% $1,160.57 $49,738.56
Los Angeles 4.11% -0.18% $514,200 +5.85% $2,369.07 $101,531.66
Louisville 4.11% -0.18% $176,700 +12.05% $897.27 $38,454.63
Memphis 4.11% -0.18% $171,500 +14.26% $885.83 $37,964.05
Miami 4.11% -0.18% $335,000 +5.35% $1,671.69 $71,644.01
Milwaukee 4.11% -0.18% $246,900 +11.72% $1,339.73 $57,416.85
Minneapolis 4.11% -0.18% $259,000 +10.35% $1,328.97 $56,955.98
Nashville 4.11% -0.18% $248,500 +7.02% $1,172.59 $50,253.66
New Orleans 4.11% -0.18% $202,000 +8.37% $1,030.29 $44,155.13
New York City 4.11% -0.18% $414,000 +7.25% $2,313.19 $99,136.79
Oklahoma City 4.11% -0.18% $160,200 +10.64% $883.26 $37,854.04
Orlando 4.11% -0.18% $245,000 +6.52% $1,263.71 $54,158.84
Philadelphia 4.11% -0.18% $239,100 +14.4% $1,323.04 $56,701.66
Phoenix 4.11% -0.18% $247,300 +3.95% $1,135.27 $48,654.62
Pittsburgh 4.11% -0.18% $145,000 +20.83% $824.35 $35,329.29
Portland 4.11% -0.18% $389,100 +8.11% $1,810.82 $77,606.70
Providence 4.11% -0.18% $280,400 +7.52% $1,548.73 $66,374.10
Raleigh 4.11% -0.18% $278,300 +11.19% $1,317.50 $56,464.35
Richmond 4.11% -0.18% $254,000 +8.27% $1,208.95 $51,812.36
Riverside/San Bernardino 4.11% -0.18% $342,100 +4.78% $1,605.09 $68,789.53
Sacramento 4.11% -0.18% $340,000 +6.35% $1,642.21 $70,380.49
Salt Lake City 4.11% -0.18% $307,900 +8.11% $1,387.14 $59,449.02
San Antonio 4.11% -0.18% $222,600 +9.87% $1,256.01 $53,829.14
San Diego 4.21% -0.14% $605,000 +7.27% $2,727.09 $116,875.11
San Francisco 4.21% -0.14% $950,000 +16.56% $4,231.30 $181,341.49
San Jose 4.21% -0.14% $1,183,400 +10.6% $5,165.15 $221,363.63
Seattle 4.11% -0.18% $475,400 +12.63% $2,189.91 $93,853.17
St Louis 4.11% -0.18% $174,000 +12.33% $951.00 $40,757.29
Tampa 4.11% -0.18% $220,200 +6.12% $1,146.22 $49,123.91
Virginia Beach 4.11% -0.18% $239,900 +16.17% $1,182.55 $50,680.78
Washington 4.11% -0.18% $428,700 +11.79% $2,068.83 $88,664.32

Comments

  1. Philip S. Moore October 24, 2016 6:13 pm

    Is there any calculation of standard deviation for these numbers? Since some of these urban areas have a vast difference between median and mean, it would be interesting to know whether the "average" is consistent with the "normal".

      Reply»  
    1. Editorial Team October 25, 2016 7:26 am

      Phillip,Thanks for all your comments. No, we do not take standard deviation into account. We can only use the data that is readily available to us: The NAR's median home prices by metro area. -Tim Manni, HSH.com

        Reply »  
  2. Oak Laurel October 22, 2016 2:47 am

    Spare a thought for us Aussies in Sydney where the median hose price is over $1 million Australian dollars. Melbourne houses are almost as expensive with a median price of over $800,000.

      Reply»  
  3. Jordan K September 21, 2016 3:06 pm

    I think the bigger issue is the assumption that the family has no student debt and has the money required to make a down payment. Even if we assume no student debt, a family making 160k in the Bay Area will, amidst ever rising rents and cost of living, have a very difficult time saving the 180k needed to put down to buy that 885k house. This needs to be more prominently addressed in order for this article to be helpful to most people.

      Reply»  
    1. Editorial Team September 22, 2016 7:49 am

      Jordan, Thanks for your comment. You're right in the sense that yes, debts are missing as part of our equation. We have no way of knowing how much debt one person has versus another. And we mention in the introduction that this is the BASE cost of owning a home, you will need to earn more to cover the total cost of owning a home. We can only work with the data that is available. Also, we provide numbers for a 10% down payment in the commentary of each slide. Given the salary break between 20% and 10%, you can assume a needed salary if you need to go down to 5%. Thanks for your comment, Tim Manni, HSH.com

        Reply »  
  4. Naomi September 20, 2016 11:34 am

    This article would be much better if you included/compared houses that you could buy at the "median" price in each city - otherwise these numbers are meaningless. A one BR walk up condo in NYC does not compare to 4BR home .. even if they are both median prices. As difficult as it may be, why don't you do the same analysis using a comparable home ..

      Reply»  
    1. Editorial Team September 22, 2016 7:56 am

      Naomi, Thanks for your comment. You're right, a 1-BR condo is NYC is not the same as a 4-BR home in Ohio. But the locations are extremely different and money buys many different things depending on where you live. We have to use the median price data from the NAR -- there is no other data. And, we compare entire metro areas, not just cities, so what you can buy in NYC vs. what you can buy on Long Island will vary greatly. Thanks for your comment, Tim Manni, HSH.com

        Reply »  
  5. Richard September 20, 2016 7:32 am

    Using the values in your table, I see that you divided monthly annual PITI (monthly PITI * 12) by 0.28 to arrive at the value for Salary Needed. Stated differently, you assume that the maximum percentage of income that should be used for PITI is 28 percent. It is wrong to assume that this value should be fixed across income. To show this, note that the household earning $32,390 in Pittsburgh has $23,320 remaining for other expenses, while the household earning $161,947 in San Francisco has $116,602 remaining for other expenses in addition to more favorable income tax deductions. Clearly, the household in San Francisco can afford to spend a somewhat higher percentage of their income on housing, and this implies that Salaries Needed at the high end of this table are somewhat inflated.

      Reply»  
    1. Editorial Team September 22, 2016 7:59 am

      Richard, Thanks for your comment. The 28% ratio we use are industry standards, the same thing any lender would calculate. Thanks for commenting, Tim Manni, HSH.com

        Reply »  
  6. Liisa Lippincott September 19, 2016 10:49 am

    What about Honolulu, Hawaii?

      Reply»  
    1. Editorial Team September 22, 2016 8:01 am

      Liisa, Up until now, we have not had metro-area mortgage rate data in Honolulu. We are considering using a national number so we can add more metros to our list. Thanks, Tim Manni, HSH.com

        Reply »  
  7. FN September 17, 2016 3:12 pm

    Next time, how about including at least one metropolitan area from EACH OF THE 50 states? You covered 4 areas just in CA here while leaving out more than half of the states in the union.

      Reply»  
    1. Editorial Team September 22, 2016 8:05 am

      FN, The reason is because, up until now, we have been using HSH's metro area mortgage rates which did not have data for all 50 states. We also compiled a list of metros based on population. We are considering using a national number so we can include more metros. Thanks for commenting, Tim Manni, HSH.com

        Reply »  
  8. Jeff September 16, 2016 9:17 pm

    I bought a house in Hillcrest (San Diego) with an income of just under $50k. Of course this was 2003 and much easier to obtain loans back then. Sold it 3 years later same condition at a $240k profit. Took that money invested and doubled over the next 3 years and used that money to repurchase the same house in cash as it had been forclosed and the price was same as i had paid in 2003. Life is good!

      Reply»  
  9. Richard September 16, 2016 12:53 pm

    These numbers seem to assume a ratio of home price to annual salary of about 4.5 - that seems rather high to me. I think most households would be really pushing their budget at that ratio. A more widely accepted ratio is 2.5-3.5. Thus, at a ratio of 3.5, the home price of 240,700 (nationwide median) would require a salary of $68,771. The home price of $885,600 in San Francisco would require a salary of $253,028.

      Reply»  
    1. Editorial Team September 22, 2016 8:10 am

      Richard, We used industry standard front and back-end ratios. Thanks for commenting, Tim Manni, HSH.com

        Reply »  
  10. B September 13, 2016 9:30 am

    Oh look! The South has been excluded again. Yes I see the Florida cities and and Atlanta. I guess that's what corporate America considers the South.

      Reply»  
    1. Rick Dykema September 21, 2016 7:16 am

      So you don't consider Texas to be in the South, B?

        Reply »  
    2. Editorial Team September 13, 2016 12:25 pm

      B: This list is based on the 27 largest metro areas, not favoritism to one region of the country over another. Thanks for your comment. Tim Manni, HSH.com.

        Reply »  

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