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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. Kirsten September 12, 2016 8:34 pm

    I wish you could make $160k a year and afford a house in the Bay Area. Ha!!!

      Reply»  
    1. Editorial Team September 13, 2016 12:27 pm

      Kirsten, This salary number is based of the median-price home (half the homes sold for more, half sold for less) as provided by the National Association of Realtors for the entire metro area, defined here: http://www.hsh.com/finance/real-estate/metro-area-definitions.html Thanks for commenting,Tim Manni, HSH.com.

        Reply »  
  2. AJ Johnston September 12, 2016 6:31 pm

    We live in Indy. It's $72 per sqaure foot in the city and around $89 per square foot in the suburbs... so my 2600ft colonial with 4 beds, 2 1/2 baths on a quarter acre overlooking a pond costs me $973 every month. Taxes are capped at 1% and my HOA is $200 a year.

      Reply»  
  3. Laura September 12, 2016 4:20 pm

    Why isn't Kansas City, Missouri on here?

      Reply»  
    1. Editorial Team September 13, 2016 12:30 pm

      Laura, Because we are utilizing the 27-largest metro areas (as defined by the OMB). Thanks for commenting, Tim Manni, HSH.com

        Reply »  
  4. tada September 12, 2016 1:53 pm

    Guys, in Atlanta atleast, the pricing is very underestimated. in any reasonable neighborhood, prices are north of 400k atleast.

      Reply»  
    1. Editorial Team September 13, 2016 12:31 pm

      Tada, You're probably right. But we're using the data that is available to us and to everyone else: median home prices (half sold for more, half sold for less) in the metro area. The Atlanta metro area is defined here: http://www.hsh.com/finance/real-estate/metro-area-definitions.html. Thanks for commenting, Tim Manni, HSH.com

        Reply »  
  5. Mariano Cortes September 12, 2016 1:03 pm

    How disappointing, i want to buy a home in NY, Long Island, i think i need a huge raise to do so.

      Reply»  
  6. Erika September 10, 2016 3:58 pm

    $480,000 in Los Angeles?! Try doubling that! Where are these numbers coming from??

      Reply»  
    1. Editorial Team September 13, 2016 12:44 pm

      Erika, These home price numbers are coming from the National Association of Realtors. It is the median home price (half the homes sold for more, half sold for less) for the entire LA metro area. See metro definitions here: http://www.hsh.com/finance/real-estate/metro-area-definitions.html Thanks for commenting. Tim Manni, HSH.com

        Reply »  
  7. James Fountain September 04, 2016 4:37 pm

    You should check out home pricing in and around Austin Tx. It's very expensive there. The closer to the city the more it costs. Very expensive.

      Reply»  
  8. Rob September 02, 2016 11:43 pm

    Looks like SF is not treated as the "major metropolitan area" of the Bay Area. So this compares SF without Oakland or Alemeda to NYC with Bronx and Staten Island. I'm sure there are similar issues in other cities.

      Reply»  
    1. Melina M September 13, 2016 10:21 am

      Actually, it looks like "San Francisco" includes all of the city, Alameda county, Marin county, San Mateo county, and Contra Costa county. If it were San Francisco by itself, the median price goes up by over a quarter million dollars to about $1.15 million, which is actually down from the $1.3 million at the beginning of the year. Citation: http://www.hsh.com/finance/real-estate/metro-area-definitions.html and http://sf.curbed.com/2015/12/8/9893366/san-franciscos-median-house-price-holds-strong-at-1-3m

        Reply »  
  9. Mike September 01, 2016 8:01 pm

    What is Burlington, VT?

      Reply»  
  10. Lisa September 01, 2016 11:57 am

    Hi, I have been looking at apartments in NYC and Los Angeles and was surprised that LA was more expensive than NYC. From what I have seen NYC is so much more expensive. Just wondering if you would have any additional factors/insights that would go into the stats.

      Reply»  
    1. Editorial Team September 06, 2016 1:37 pm

      Hey Lisa, thanks for commenting. "Just wondering if you would have any additional factors/insights that would go into the stats." If you look on the first and last slide you will see all the factors that went into these calculations. Thanks for commenting. -Tim Manni, HSH.com

        Reply »  

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