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:
On a year-over-year basis, home prices continue to rise and affordability continues to slide. This is the case even with only a slight rise in mortgage rates in the third quarter of 2018 compared to the second (however, another bounce higher came in the beginning of the fourth quarter). With challenging conditions continuing, it's little wonder that sales of existing homes have been flagging since late winter.
Of late, there have been some rumblings in the news that this cooling in sales is starting to lead to lower asking prices, or at least sellers accepting bids below asking price. While by no means widespread across individual metro markets, there is growing evidence that the rate of annual price increases has started to soften. Nationally, for example, the current year-over-year increase in the median price of an existing home sold in the third quarter was up by just 4.8%; that figure was 5.3% in the second quarter and 5.7% in the first quarter (4th and 3rd quarter in 2017 both had 5.3% year-over-year increases).
Of course, local markets can perform very differently than the nation as a whole, and year-over-year price increases ranged from the slight (+0.71% in the Philadelphia, PA metro area) to the pronounced (+12.61% in the Las Vegas metro area).
Of the most affordable areas, the Oklahoma City OK metro moved up to the second most affordable spot, nudging the Cleveland, OH down a sport; also, the Memphis, TN metro area jumped up by two spots from #6 to #4, swapping positions with the Louisville, KY metro. Along with Louisville getting relatively more pricey during the period, the Buffalo, NY metro dropped three slots in terms of affordability, moving from seventh most affordable to tenth for the quarter. There was only one measurable move in the least affordable group, where the Hartford, CT metro got a little pricier, moving two positions toward more expensive.
The third quarter often sees a fair number of markets posting quarter-to-quarter declines in the median price of homes sold. In 2018, 29 metro areas posted a Q-to-Q decline; in 2017, 28 markets did, and there were 26 such comparisons back in 2016. For markets that did show a Q-to-Q decline, the median decline was 2.05%; in 2017, it was 1.53%, and in 2016, just 0.90%. As such, not only are more metro areas seeing this quarterly shift, but the amount of the reduction seems to be growing. It's not clear if home shoppers are expressing a preference for lower-cost homes in the summer, or if homes on the market when the "spring homebuying season" has given way to summer vacations are being sold at a discounted price. Whatever the reason, it's an interesting phenomena.
Slowing sales should help balance supply better against demand, but it's not likely to happen quickly. According to NAR chief economist Lawrence Yun, “Aspiring middle-class home buyers continue to face affordably issues, as buyers are increasingly being priced out in the West while the rest of the country struggles, too,” said Yun. “The market desperately needs homebuilders to begin constructing more moderately priced single-family home and condominiums to help satisfy demand and mitigate rapid price growth.”
Given the trend in place, odds don't favor a quick rebound in either affordability or sales, so we're likely in for a quiet fourth quarter and probably first quarter of 2019 for existing home sales. If price gains continue to moderate and mortgage rates don't rise much from existing levels by then, we just might see sales power higher when the spring season comes back around.
Expensive and competitive housing markets means that homebuyers of more modest means can be at a considerable disadvantage. If you're struggling to try to buy a home in these conditions, you might check out our state-by-state Homebuyer Assistance pages, where you'll find state-backed entities that may be able to help you with lower cost financing and loans or grants to cover down payment and closing costs.
|
The salary you must earn to buy a home in the 50 largest metros
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’ 2018 third-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. At the bottom 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. 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: $61,297.78
Mortgage rate: 4.69 percent
Home price: $266,800
Monthly payment: $1,430.28 Salary: $61,297.78
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 $69,622.36
Atlanta: $49,935.15
Mortgage rate: 4.69 percent
Home price: $224,100
Monthly payment: $1,165.15 Salary: $49,935.15
If homebuyers in the Atlanta metro put 10 percent down instead of 20 percent, the required salary increases from $49,935.15 to $56,927.42.
Austin: $75,539.21
Mortgage rate: 4.69 percent
Home price: $318,200
Monthly payment: $1,762.58 Salary: $75,539.21
If homebuyers in the Austin metro put 10 percent down instead of 20 percent, the required salary increases from $75,539.21 to $85,467.56.
Baltimore: $68,372.23
Mortgage rate: 4.69 percent
Home price: $300,900
Monthly payment: $1,595.35 Salary: $68,372.23
If homebuyers in the Baltimore metro put 10 percent down instead of 20 percent, the required salary increases from $68,372.23 to $77,760.79.
Birmingham: $45,498.98
Mortgage rate: 4.69 percent
Home price: $213,400
Monthly payment: $1,061.64 Salary: $45,498.98
If homebuyers in the Birmingham metro put 10 percent down instead of 20 percent, the required salary increases from $45,498.98 to $52,157.39.
Boston: $108,918.16
Mortgage rate: 4.69 percent
Home price: $491,400
Monthly payment: $2,541.42 Salary: $108,918.16
If homebuyers in the Boston metro put 10 percent down instead of 20 percent, the required salary increases from $108,918.16 to $124,250.62.
Buffalo: $45,882.92
Mortgage rate: 4.69 percent
Home price: $163,100
Monthly payment: $1,070.60 Salary: $45,882.92
If homebuyers in the Buffalo metro put 10 percent down instead of 20 percent, the required salary increases from $45,882.92 to $50,971.89.
Charlotte: $52,832.97
Mortgage rate: 4.69 percent
Home price: $245,000
Monthly payment: $1,232.77 Salary: $52,832.97
If homebuyers in the Charlotte metro put 10 percent down instead of 20 percent, the required salary increases from $52,832.97 to $60,477.35.
Chicago: $68,127.79
Mortgage rate: 4.69 percent
Home price: $265,300
Monthly payment: $1,589.65 Salary: $68,127.79
If homebuyers in the Chicago metro put 10 percent down instead of 20 percent, the required salary increases from $68,127.79 to $76,405.57.
Cincinnati: $43,871.15
Mortgage rate: 4.69 percent
Home price: $179,100
Monthly payment: $1,023.66 Salary: $43,871.15
If homebuyers in the Cincinnati metro put 10 percent down instead of 20 percent, the required salary increases from $43,871.15 to $49,459.35.
Cleveland: $40,996.79
Mortgage rate: 4.69 percent
Home price: $159,800
Monthly payment: $956.59 Salary: $40,996.79
If homebuyers in the Cleveland metro put 10 percent down instead of 20 percent, the required salary increases from $40,996.79 to $45,982.81.
Columbus: $49,790.25
Mortgage rate: 4.69 percent
Home price: $207,600
Monthly payment: $1,161.77 Salary: $49,790.25
If homebuyers in the Columbus metro put 10 percent down instead of 20 percent, the required salary increases from $49,790.25 to $56,267.70.
Dallas: $65,420.14
Mortgage rate: 4.69 percent
Home price: $262,100
Monthly payment: $1,526.47 Salary: $65,420.14
If homebuyers in the Dallas metro put 10 percent down instead of 20 percent, the required salary increases from $65,420.14 to $73,598.08.
Denver: $91,275.61
Mortgage rate: 4.69 percent
Home price: $450,100
Monthly payment: $2,129.76 Salary: $91,275.61
If homebuyers in the Denver metro put 10 percent down instead of 20 percent, the required salary increases from $91,275.61 to $105,319.45.
Detroit: $47,007.05
Mortgage rate: 4.69 percent
Home price: $194,363
Monthly payment: $1,096.83 Salary: $47,007.05
If homebuyers in the Detroit metro put 10 percent down instead of 20 percent, the required salary increases from $47,007.05 to $53,071.48.
Hartford: $66,130.16
Mortgage rate: 4.69 percent
Home price: $244,200
Monthly payment: $1,543.04 Salary: $66,130.16
If homebuyers in the Hartford metro put 10 percent down instead of 20 percent, the required salary increases from $66,130.16 to $73,749.59.
Houston: $61,087.57
Mortgage rate: 4.69 percent
Home price: $240,200
Monthly payment: $1,425.38 Salary: $61,087.57
If homebuyers in the Houston metro put 10 percent down instead of 20 percent, the required salary increases from $61,087.57 to $68,582.19.
Indianapolis: $41,893.89
Mortgage rate: 4.69 percent
Home price: $188,900
Monthly payment: $977.52 Salary: $41,893.89
If homebuyers in the Indianapolis metro put 10 percent down instead of 20 percent, the required salary increases from $41,893.89 to $47,787.87.
Jacksonville: $56,737.71
Mortgage rate: 4.69 percent
Home price: $247,500
Monthly payment: $1,323.88 Salary: $56,737.71
If homebuyers in the Jacksonville metro put 10 percent down instead of 20 percent, the required salary increases from $56,737.71 to $64,460.10.
Kansas City: $48,428.55
Mortgage rate: 4.69 percent
Home price: $204,900
Monthly payment: $1,130.00 Salary: $48,428.55
If homebuyers in the Kansas City metro put 10 percent down instead of 20 percent, the required salary increases from $48,428.55 to $54,821.76.
Las Vegas: $60,299.70
Mortgage rate: 4.69 percent
Home price: $294,600
Monthly payment: $1,406.99 Salary: $60,299.70
If homebuyers in the Las Vegas metro put 10 percent down instead of 20 percent, the required salary increases from $60,299.70 to $69,491.68.
Los Angeles: $129,545.94
Mortgage rate: 4.81 percent
Home price: $628,900
Monthly payment: $3,022.74 Salary: $129,545.94
If homebuyers in the Los Angeles metro put 10 percent down instead of 20 percent, the required salary increases from $129,545.94 to $149,363.57.
Louisville: $42,108.04
Mortgage rate: 4.69 percent
Home price: $184,800
Monthly payment: $982.52 Salary: $42,108.04
If homebuyers in the Louisville metro put 10 percent down instead of 20 percent, the required salary increases from $42,108.04 to $47,874.09.
Memphis: $41,630.42
Mortgage rate: 4.69 percent
Home price: $180,600
Monthly payment: $971.38 Salary: $41,630.42
If homebuyers in the Memphis metro put 10 percent down instead of 20 percent, the required salary increases from $41,630.42 to $47,265.43.
Miami: $78,909.65
Mortgage rate: 4.69 percent
Home price: $355,000
Monthly payment: $1,841.22 Salary: $78,909.65
If homebuyers in the Miami metro put 10 percent down instead of 20 percent, the required salary increases from $78,909.65 to $89,986.21.
Milwaukee: $63,316.19
Mortgage rate: 4.69 percent
Home price: $262,500
Monthly payment: $1,477.38 Salary: $63,316.19
If homebuyers in the Milwaukee metro put 10 percent down instead of 20 percent, the required salary increases from $63,316.19 to $71,506.60.
Minneapolis: $63,122.54
Mortgage rate: 4.69 percent
Home price: $274,500
Monthly payment: $1,472.86 Salary: $63,122.54
If homebuyers in the Minneapolis metro put 10 percent down instead of 20 percent, the required salary increases from $63,122.54 to $71,687.38.
Nashville: $55,712.52
Mortgage rate: 4.69 percent
Home price: $262,600
Monthly payment: $1,299.96 Salary: $55,712.52
If homebuyers in the Nashville metro put 10 percent down instead of 20 percent, the required salary increases from $55,712.52 to $63,906.06.
New Orleans: $49,364.34
Mortgage rate: 4.69 percent
Home price: $216,000
Monthly payment: $1,151.83 Salary: $49,364.34
If homebuyers in the New Orleans metro put 10 percent down instead of 20 percent, the required salary increases from $49,364.34 to $56,103.88.
New York City: $106,632.33
Mortgage rate: 4.69 percent
Home price: $428,200
Monthly payment: $2,488.09 Salary: $106,632.33
If homebuyers in the New York City metro put 10 percent down instead of 20 percent, the required salary increases from $106,632.33 to $119,992.84.
Oklahoma City: $40,917.10
Mortgage rate: 4.69 percent
Home price: $164,700
Monthly payment: $954.73 Salary: $40,917.10
If homebuyers in the Oklahoma City metro put 10 percent down instead of 20 percent, the required salary increases from $40,917.10 to $46,056.00.
Orlando: $60,544.97
Mortgage rate: 4.69 percent
Home price: $266,000
Monthly payment: $1,412.72 Salary: $60,544.97
If homebuyers in the Orlando metro put 10 percent down instead of 20 percent, the required salary increases from $60,544.97 to $68,844.60.
Philadelphia: $59,847.90
Mortgage rate: 4.69 percent
Home price: $240,600
Monthly payment: $1,396.45 Salary: $59,847.90
If homebuyers in the Philadelphia metro put 10 percent down instead of 20 percent, the required salary increases from $59,847.90 to $67,355.00.
Phoenix: $56,231.41
Mortgage rate: 4.69 percent
Home price: $272,700
Monthly payment: $1,312.07 Salary: $56,231.41
If homebuyers in the Phoenix metro put 10 percent down instead of 20 percent, the required salary increases from $56,231.41 to $64,740.08.
Pittsburgh: $38,879.97
Mortgage rate: 4.69 percent
Home price: $155,000
Monthly payment: $907.20 Salary: $38,879.97
If homebuyers in the Pittsburgh metro put 10 percent down instead of 20 percent, the required salary increases from $38,879.97 to $43,716.21.
Portland: $84,235.03
Mortgage rate: 4.69 percent
Home price: $399,300
Monthly payment: $1,965.48 Salary: $84,235.03
If homebuyers in the Portland metro put 10 percent down instead of 20 percent, the required salary increases from $84,235.03 to $96,693.82.
Providence: $74,261.58
Mortgage rate: 4.69 percent
Home price: $305,300
Monthly payment: $1,732.77 Salary: $74,261.58
If homebuyers in the Providence metro put 10 percent down instead of 20 percent, the required salary increases from $74,261.58 to $83,787.43.
Raleigh: $61,488.36
Mortgage rate: 4.69 percent
Home price: $287,800
Monthly payment: $1,434.73 Salary: $61,488.36
If homebuyers in the Raleigh metro put 10 percent down instead of 20 percent, the required salary increases from $61,488.36 to $70,468.18.
Richmond: $57,282.34
Mortgage rate: 4.69 percent
Home price: $268,000
Monthly payment: $1,336.59 Salary: $57,282.34
If homebuyers in the Richmond metro put 10 percent down instead of 20 percent, the required salary increases from $57,282.34 to $65,644.37.
Riverside/San Bernardino: $76,473.88
Mortgage rate: 4.69 percent
Home price: $362,500
Monthly payment: $1,784.39 Salary: $76,473.88
If homebuyers in the Riverside/San Bernardino metro put 10 percent down instead of 20 percent, the required salary increases from $76,473.88 to $87,784.46.
Sacramento: $79,745.27
Mortgage rate: 4.69 percent
Home price: $370,000
Monthly payment: $1,860.72 Salary: $79,745.27
If homebuyers in the Sacramento metro put 10 percent down instead of 20 percent, the required salary increases from $79,745.27 to $91,289.85.
Salt Lake City: $65,762.43
Mortgage rate: 4.69 percent
Home price: $322,300
Monthly payment: $1,534.46 Salary: $65,762.43
If homebuyers in the Salt Lake City metro put 10 percent down instead of 20 percent, the required salary increases from $65,762.43 to $75,818.70.
San Antonio: $58,234.91
Mortgage rate: 4.69 percent
Home price: $231,800
Monthly payment: $1,358.81 Salary: $58,234.91
If homebuyers in the San Antonio metro put 10 percent down instead of 20 percent, the required salary increases from $58,234.91 to $65,467.44.
San Diego: $132,420.90
Mortgage rate: 4.81 percent
Home price: $650,000
Monthly payment: $3,089.82 Salary: $132,420.90
If homebuyers in the San Diego metro put 10 percent down instead of 20 percent, the required salary increases from $132,420.90 to $152,903.42.
San Francisco: $200,025.85
Mortgage rate: 4.81 percent
Home price: $989,000
Monthly payment: $4,667.27 Salary: $200,025.85
If homebuyers in the San Francisco metro put 10 percent down instead of 20 percent, the required salary increases from $200,025.85 to $231,190.80.
San Jose: $256,877.50
Mortgage rate: 4.81 percent
Home price: $1,300,000
Monthly payment: $5,993.81 Salary: $256,877.50
If homebuyers in the San Jose metro put 10 percent down instead of 20 percent, the required salary increases from $256,877.50 to $297,842.55.
Seattle: $104,717.94
Mortgage rate: 4.69 percent
Home price: $502,800
Monthly payment: $2,443.42 Salary: $104,717.94
If homebuyers in the Seattle metro put 10 percent down instead of 20 percent, the required salary increases from $104,717.94 to $120,406.10.
St Louis: $44,414.80
Mortgage rate: 4.69 percent
Home price: $182,000
Monthly payment: $1,036.35 Salary: $44,414.80
If homebuyers in the St Louis metro put 10 percent down instead of 20 percent, the required salary increases from $44,414.80 to $50,093.48.
Tampa: $54,295.17
Mortgage rate: 4.69 percent
Home price: $236,000
Monthly payment: $1,266.89 Salary: $54,295.17
If homebuyers in the Tampa metro put 10 percent down instead of 20 percent, the required salary increases from $54,295.17 to $61,658.74.
Virginia Beach: $52,628.27
Mortgage rate: 4.69 percent
Home price: $235,000
Monthly payment: $1,227.99 Salary: $52,628.27
If homebuyers in the Virginia Beach metro put 10 percent down instead of 20 percent, the required salary increases from $52,628.27 to $59,960.64.
Washington, D.C.: $93,380.86
Mortgage rate: 4.69 percent
Home price: $426,000
Monthly payment: $2,178.89 Salary: $93,380.86
If homebuyers in the Washington, D.C. metro put 10 percent down instead of 20 percent, the required salary increases from $93,380.86 to $106,672.74.
How did we come up with these salaries?
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 2018 third-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 2Q18 | Median Home Price | % Change from 2Q18 | Monthly Payment (PITI) | Salary Needed |
| National | 4.69% | +0.03% | $266,800 | -0.45% | $1,430.28 | $61,297.78 |
| Atlanta | 4.69% | +0.03% | $224,100 | -2.05% | $1,165.15 | $49,935.15 |
| Austin | 4.69% | +0.03% | $318,200 | -3.63% | $1,762.58 | $75,539.21 |
| Baltimore | 4.69% | +0.03% | $300,900 | +1.24% | $1,595.35 | $68,372.23 |
| Birmingham | 4.69% | +0.03% | $213,400 | -0.65% | $1,061.64 | $45,498.98 |
| Boston | 4.69% | +0.03% | $491,400 | -0.91% | $2,541.42 | $108,918.16 |
| Buffalo | 4.69% | +0.03% | $163,100 | +9.39% | $1,070.60 | $45,882.92 |
| Charlotte | 4.69% | +0.03% | $245,000 | -2.93% | $1,232.77 | $52,832.97 |
| Chicago | 4.69% | +0.03% | $265,300 | -3.56% | $1,589.65 | $68,127.79 |
| Cincinnati | 4.69% | +0.03% | $179,100 | -2.61% | $1,023.66 | $43,871.15 |
| Cleveland | 4.69% | +0.03% | $159,800 | +0.19% | $956.59 | $40,996.79 |
| Columbus | 4.69% | +0.03% | $207,600 | -0.48% | $1,161.77 | $49,790.25 |
| Dallas | 4.69% | +0.03% | $262,100 | -2.27% | $1,526.47 | $65,420.14 |
| Denver | 4.69% | +0.03% | $450,100 | -2.77% | $2,129.76 | $91,275.61 |
| Detroit | 4.69% | +0.03% | $194,363 | +1.79% | $1,096.83 | $47,007.05 |
| Hartford | 4.69% | +0.03% | $244,200 | +2.01% | $1,543.04 | $66,130.16 |
| Houston | 4.69% | +0.03% | $240,200 | -1.72% | $1,425.38 | $61,087.57 |
| Indianapolis | 4.69% | +0.03% | $188,900 | -2.68% | $977.52 | $41,893.89 |
| Jacksonville | 4.69% | +0.03% | $247,500 | -1.00% | $1,323.88 | $56,737.71 |
| Kansas City | 4.69% | +0.03% | $204,900 | -4.70% | $1,130.00 | $48,428.55 |
| Las Vegas | 4.69% | +0.03% | $294,600 | +1.10% | $1,406.99 | $60,299.70 |
| Los Angeles | 4.81% | +0.15% | $628,900 | +12.87% | $3,022.74 | $129,545.94 |
| Louisville | 4.69% | +0.03% | $184,800 | +0.49% | $982.52 | $42,108.04 |
| Memphis | 4.69% | +0.03% | $180,600 | -4.49% | $971.38 | $41,630.42 |
| Miami | 4.69% | +0.03% | $355,000 | +0.57% | $1,841.22 | $78,909.65 |
| Milwaukee | 4.69% | +0.03% | $262,500 | +2.18% | $1,477.38 | $63,316.19 |
| Minneapolis | 4.69% | +0.03% | $274,500 | -2.03% | $1,472.86 | $63,122.54 |
| Nashville | 4.69% | +0.03% | $262,600 | -0.23% | $1,299.96 | $55,712.52 |
| New Orleans | 4.69% | +0.03% | $216,000 | -0.05% | $1,151.83 | $49,364.34 |
| New York City | 4.69% | +0.03% | $428,200 | +4.31% | $2,488.09 | $106,632.33 |
| Oklahoma City | 4.69% | +0.03% | $164,700 | +0.12% | $954.73 | $40,917.10 |
| Orlando | 4.69% | +0.03% | $266,000 | -1.12% | $1,412.72 | $60,544.97 |
| Philadelphia | 4.69% | +0.03% | $240,600 | +1.91% | $1,396.45 | $59,847.90 |
| Phoenix | 4.69% | +0.03% | $272,700 | +0.26% | $1,312.07 | $56,231.41 |
| Pittsburgh | 4.69% | +0.03% | $155,000 | +1.97% | $907.20 | $38,879.97 |
| Portland | 4.69% | +0.03% | $399,300 | -1.92% | $1,965.48 | $84,235.03 |
| Providence | 4.69% | +0.03% | $305,300 | +3.60% | $1,732.77 | $74,261.58 |
| Raleigh | 4.69% | +0.03% | $287,800 | -0.96% | $1,434.73 | $61,488.36 |
| Richmond | 4.69% | +0.03% | $268,000 | +0.37% | $1,336.59 | $57,282.34 |
| Riverside/San Bernardino | 4.69% | +0.03% | $362,500 | +0.69% | $1,784.39 | $76,473.88 |
| Sacramento | 4.69% | +0.03% | $370,000 | -1.07% | $1,860.72 | $79,745.27 |
| Salt Lake City | 4.69% | +0.03% | $322,300 | -2.80% | $1,534.46 | $65,762.43 |
| San Antonio | 4.69% | +0.03% | $231,800 | +0.65% | $1,358.81 | $58,234.91 |
| San Diego | 4.81% | +0.04% | $650,000 | +0.78% | $3,089.82 | $132,420.90 |
| San Francisco | 4.81% | +0.04% | $989,000 | -7.57% | $4,667.27 | $200,025.85 |
| San Jose | 4.81% | +0.04% | $1,300,000 | -7.47% | $5,993.81 | $256,877.50 |
| Seattle | 4.69% | +0.03% | $502,800 | -5.19% | $2,443.42 | $104,717.94 |
| St Louis | 4.69% | +0.03% | $182,000 | -1.99% | $1,036.35 | $44,414.80 |
| Tampa | 4.69% | +0.03% | $236,000 | -1.13% | $1,266.89 | $54,295.17 |
| Virginia Beach | 4.69% | +0.03% | $235,000 | +0.00% | $1,227.99 | $52,628.27 |
| Washington, D.C. | 4.69% | +0.03% | $426,000 | -3.86% | $2,178.89 | $93,380.86 |
Honolulu Hawaii is shockingly not included in your list. Please add it
Reply»NYC @ $419k median home price is an absolutely joke. The median price is double that number, so salary "guesstimate" on this article is half of what would be needed, so you can double that $99k annual salary to $180,000. These numbers are far from accurate. Pass on any data contained here.
Reply»If you take the time to check the "metro definitions page" you'll find that the OMB definition of the metro area is quite expansive and well beyond Manhattan and the five boroughs. The area includes the counties of Bronx, Kings, New York, Queens, Richmond, Nassau, Suffolk, Putnam, Rockland, Westchester (NY); Essex, Hunterdon, Morris, Somerset, Sussex, Union, Bergen, Hudson, Middlesex, Monmouth, Ocean, Passaic (NJ); Dutchess, Orange (NY), Pike (PA), and we stand by our calculation (for details, check the "About" slide).
Reply »Just wondering what you consider a "home". The claim that the median price of a "home" in Miami is $340,000 makes me think that even studio apartments are counted in this equation. I don't think you can find a home for $340,000 in Miami unless you are including studio apartments. The houses in my Miami neighborhood start at $630,000, while most cost at least $700,000. Studio apartments usually start at $130,000 but can go for much more.
Reply»Please know that we don't define a home at all; we use the National Association of Realtors median price for an existing single-family home. Also, as the area included in the calculation covers the entire metropolitan area (Miami-Dade, Broward and Palm Beach Counties) is it certainly likely that homes in the city proper or in your specific neighborhood will be higher, but that's not necessarily the case when you get further away from the center city.
Reply »Your definition of Boston extends to places 50 miles away. It's a small concentrated city. Difference between the center and even 20 miles out is sometimes 3 fold.
Reply»We don't define the metro areas used in our analysis; rather, we use the definitions as provided by the Office of Management and Budget.
Reply »So, Honolulu is the 46th most populous city in the United States, with a metropolitan area boasting a population of 955,000, and is the most expensive to purchase a home (median prices starting at over $650,000). Shouldn't they have been included in this article?
Reply»The current (July 2016) population estimate for the Urban Honolulu, HI Metropolitan Statistical Area from the Census Bureau sees the area ranked #54 in terms of population. Even though it is historically an expensive housing area, it misses the cut.
Reply »It's fine to say the median price of a home in NEW YORK CITY IS approximately $400,000, but in Manhattan the median price is well over a million and a $100,00 salary really won't cut it unless you bought property decades ago. One East Village building that sold for 2.5 million in the 1980s now has individual apartments for that price. This survey really doesn't tell it like it is.
Reply»The calculation includes the entire New York City metropolitan area, not just Manhattan or the five boroughs. Please check the "metro definitions" page for details.
Reply »Did you use median homes defined as single family or including condo and coop?
Reply»The data from the National Association of Realtors that we use in our calculation covers existing single-family homes only.
Reply »What about Honolulu? I'm sure the median home price and the salary needed would rank towards the top.
Reply»The National Association of Realtors reported that the Urban Honolulu metro area had a median home price of $760,200 in the third quarter of 2017. This would have fit in between San Diego and San Francisco, and using our methodology, a reckoning for the salary needed to buy a median-priced existing home there would be $135,800.56 The metro area is ranked #54 in terms of population. so it just missed our list of top 50.
Reply »Has there been talk of changing or modifying the 28/36 rule to better reflect the cost of living excluding housing and loans? At present this table uses a fixed 28% to get from PITI to Salary Needed regardless of where you are in the USA.The problem is the PITI now ranges from $821.46 for Pittsburgh to $5,044.23 for San Jose. A median home is 6.1 times more expensive in the San Jose metro area than the Pittsburgh metro area. However, other costs such as an automobile, food, and utilities (electricity, gas, water) are roughly the same for San Jose vs. Pittsburgh.Someone maxed out at 36% of gross income for home, auto, and credit cards loans would have $1,056.16 of extra spending money per month for life's essentials in Pittsburgh and $6,485.44 per month extra in San Jose. It's tough to live on $1,056.16 if you are paying for a kid in college or trying to set aside money for major repairs. You can live like a king if you have an extra $6,485.44 per month coming in.Thus, it seems the 28/36 rule needs to be more flexible. The main advantage for folks in San Jose is they could live like they are in Pittsburgh (spending under $1000/month) and to add $5,500 per month to savings. Building up an extra $66,000 of savings every year would be bad for the economy but allows the San Jose folks to call their own shots in life. Every month they would be saving up more than their PITI. The main downside is very few people have a $216,181.25/year or more minimum gross income needed to pass the 28/36 rule in San Jose.
Reply»The good news of sorts is that while we do calculations using traditional rules, market rules allow for "back-end" ratios that are commonly higher. The FHA allows for 41 percent total DTIs; Qualified Mortgage rules allow for 43%, and Fannie and Freddie are currently purchasing loans with total DTIs of up to 50 percent. While this may be more reflective of reality in some eyes, the truth is that carrying this much debt can put you at a greater risk of financial trouble, so adhering to a more conservative level of debt is likely to be safer and more sustainable over time.
Reply »Your property tax estimates for California do not appear to take in account Prop 13. Upon sale the property is reassessed to the purchase price. In my area of San Jose the actual tax rate is 1.3% $1194 parcel tax. Your $1,165,000 property tax bill would be approximately $16,340 or $1362 per month.
Reply»The tax data we use in our calculations comes from the Census Bureau as part of the American Community Survey. The figures we use are medians for the metro area.
Reply »