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:
The difficult situation for potential homebuyers got little better in the third quarter of 2021, as lean inventories of existing homes to purchase and rising home prices continue to pose challenges. That said, price increases in the third quarter of 2021, while sizable, decelerated a bit from the usually-hot second quarter of the year. The second quarter encompasses the so-called "spring homebuying season", and often features the fastest price gains and sales of the year.
In these still-distorted times, that season extended into summer this year, and even into early autumn, and sales strengthened a bit during the period, and actually picked up smartly in September.
Leaving out 2020's pandemic period, it's not unusual to see home price increase start to soften in the third quarter. In the third quarter of the years of 2016, '17, '18 and '19, half or more of the 50 largest metropolitan areas showed quarter-to-quarter decreases in median home prices (2020 had no decreases). For 3Q21, 12 of the 50 did see lower costs than in the second stanza of the year, about half the normal rate, denoting a still-strong pace of activity during the period.
However, even in places where there was some quarterly easing in home prices, all markets were substantially more costly this year than last, with home price increases in the 50 metros we track ranging from 7.11% more costly in Milwaukee to as much as 26.18% higher in Salt lake City.
Price Pressures
Home prices are still marching higher, if perhaps slightly less so. On an year-over year basis, the increase in the national median price of a home sold during the third quarter was 16.05% higher, little better than the 22.88% annual increase notched in the second quarter. Of the 50 markets we track, the average median increase for the latest quarter was 14.74%, a bit better than the 20.57% rise in the second quarter of this year.
Of course, smaller percentage increases don't help all that much when the median price of a home this year is $363,700 -- $50,300 more than the median cost last year. Price increases may be cooling, but costs remain very elevated. Some of the markets that cooled a little this quarter are those that have been on fire for some time -- metros like San Francisco, Seattle, Denver, Austin, San Jose, Washington DC and a couple of others -- all could stand to settle a little if affordability in those markets is to be maintained. The six mentioned here are all in the 10 places that require the highest incomes to afford a home.
Salary Situation
Relative affordability managed to improve a bit in the third quarter, thanks to mortgage rates that retreated back to Q1 levels and the aforementioned markets that saw some price settling. In fact, 26 metro areas required a smaller annual salary to purchase a median-priced home in the third quarter compared to the second, although 15 of those saw decreases in the income needed of less than $1,000, just a little better than stabilization. If such a thing existed, purchasing the national median priced home in the third quarter of this year would require 11.94% more salary this year than last.
But that of course is only a comparison from a highly expensive quarter to a slightly less pricey one. There was no such improvement in purchasing power when referencing this year against last, where salary increases needed to keep pace ranged from 3.10% in the Milwaukee metro to 21.23% in the Phoenix metro area. Milwaukee is in the "Least expensive" group, while Phoenix is in the "Most expensive", but in reality they both occupy space in the middle third of the 50 markets we monitor.
With incomes rising somewhere in the range of 4.6% per year according to the latest Bureau of Labor Statistics data, home prices in most metros continue to outstrip income gains, so more homebuyers at the margins are likely stepping out of contention as we go. Despite relatively raging inflation, mortgage rates have remained both low and well-tethered, but with the Fed starting to consider raising rates next year, that fortunate happenstance may not last.
Inventory Issues
As long as inventories remain thin and demand for homes remains high, outsized price increase will continue, if perhaps at a lesser pace. The National Association of Realtors used to claim that about 6 months of inventory of homes available to buy at a given sales pace was considered "optimal". It has now been about nine years since that level was reached back in August of 2012, and existing home sales at that time were about 23% lower then they were this September. In fact, it's been six years since inventories have been even as high as 5 months, and stockpiles are currently about half that relatively lofty level as we start to enter the normally thinnest part of the year for homes for sale. It doesn't look as though the "high prices and little to buy" issue is going to solve itself anytime soon.
How much house will your income and debt-load support? You can run your own calculations with HSH.com's How Much House Can I Afford to Buy? calculator.
Downpayment Difficulties
As we've noted in the last several reviews of home-price conditions, it's not just the intersection of price, loan amount and interest rate that vexes potential home buyers, it's also the need to try to amass sufficient funds for a downpayment. Chasing escalating home prices is a challenge even in normal conditions of more moderate home price gains but far worse in these conditions. In the third quarter last year, a prospective homebuyer looking to purchase the national median priced home would have had to save up $62,680 to make the 20% downpayment we use in our calculations; this year, that amount has grown to $72,420. Just to keep pace a wanna-be buyer would have had to sock away more than an additional $812 per month, and the goalposts just keep moving further away was we go.
Lower down payment mortgages are available, of course, but the smaller the downpayment, the higher the PMI cost will be -- and that higher monthly cost will impinge on how much mortgage for which a borrower can qualify. And in our quarterly analysis, as we are calculating the income needed to cover a fixed median home price, a smaller downpayment also means a larger loan amount, which in turn requires more income to qualify.
Before we discourage any potential homebuyers any further, one point to consider in all of this is that we work from the median home price provided by the National Association of Realtors. The median means that half of the homes sold in the third quarter of 2021 had prices below these published values, and half above, so half the buyers would have found lower cost options available, lessening both the burden of the downpayment savings needed and the income required to own one of those homes.
As well, the average offered rates from Freddie Mac used in the majority of our calculations are just that: average. Borrowers who shop around for mortgage rates, take actions such as paying points to lower the rate somewhat and other considerations also would likely be able to do better than average, helping to keep costs more manageable. For first time buyers, being prepared, shopping around and getting preapproved are part of the essential steps to successful home buying.
A housekeeping note related to the data for this quarter: The Pittsburgh metro area median home price data provided by RealStats is again preliminary and subject to future revision.
Potential homebuyers of more modest means looking to buy homes often struggle to come up with even a minimum downpayment and closing costs, especially in heated markets. Help making the jump to homeownership is often available but is tricky to find if you don't know where to look. To help would-be homebuyers, HSH offers its database of Homebuyer Assistance Programs by state, where information about these valuable programs, vital website addresses, contact info and more can be found.
Left out Las Vegas on here
You can see Las Vegas either by clicking on the "All Metro Areas" list or the "25 Least Expensive" list (it's #25) or cut and paste this URL to see the slide directly --https://www.hsh.com/finance/mortgage/salary-home-buying-25-cities.html#las-vegas
If a homebuyer in this area put a 10% down payment instead of a 20% down payment, the required salary increases to how much?
The answer to your question -- 10% down versus 20% down -- can be found at the bottom of each metro area's individual slide. Click on a market you are interested in and see!
Great website
Did you forget Honolulu is part of the US?
No, but we did remember that current (2018) population estimate for the Urban Honolulu, HI Metropolitan Statistical Area from the Census Bureau sees the area ranked #56 in terms of population. As such, it missed our "top 50" cut off, even though it is historically a very expensive area for housing.
Why is Chicago so cheap, is everyone leaving?
Honolulu Hawaii is shockingly not included in your list. Please add it
I wouldn't go off what the realtor says, you know there is no jobs that pay those salary's around the area...so get ready for a market crash and I mean all over.
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.
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).
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.
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.
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.
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.
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?
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.
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.
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.
Did you use median homes defined as single family or including condo and coop?
The data from the National Association of Realtors that we use in our calculation covers existing single-family homes only.
What about Honolulu? I'm sure the median home price and the salary needed would rank towards the top.
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.
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.
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.
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.
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.
You (appropriately) include property taxes, but do you also include state/local income taxes? If one state takes 5k in property taxes, and another takes 5k from you in income taxes, it has an equal effect on affordability.
The calculation for mortgage qualification performed by lenders is done using pre-tax income, so this is the calculation we employ. Income taxes and other costs (utilities, commuting, etc) are part of the cost of living, and certainly can affect one's level of financial comfort, but play no role in mortgage qualification.
Great article. Atlanta 40k
This is a great article to read, it shows Atlanta at around $40K. Thought you might like to take a look at this
It's always interesting to me how these "National" surveys always skip over Indianapolis, in favor of dying markets like Cleveland, Cincinnati, St Louis, Pittsburg all of which are loosing population. Even Chicago has been loosing population since 2000. Indianapolis is the 14th largest city by population and has had a population growth of 9% from 2000 - 2015.
Currently, we are covering only the 27 largest metro areas; according to the latest Census estimates, Indianapolis comes in at #32. However, it might interest you to know that based on the same methodology as the areas we do cover, that the Indianapolis metro area, with a median home price of $152,900 in the first quarter of 2017 would have required a salary of $34,979.46, good enough for fourth lowest of our group.
When I purchased a home 20 years ago, the going rate was 3X salary, so $50,000 salary would equate to $150,000 home and that took into account a small down payment (<10%), 30 year mortgage rate and local taxes. This seems to be at least 4X and in some cases more which is bothersome.
You can check the methodology slide at the end of the show, but we use the industry standard 28 percent "front end" ratio for the PITI calculation. One considerable difference between years ago and today are much lower mortgage rates, which materially improve a given income's debt-carrying ability (aka as "lower mortgage rates increase borrowing ability").
Is this based on 20% down? These numbers (especially in Texas) are inaccurate. Did your methods consider 3% property tax? I don't know anyone with a 1,200/month payment on a home in Dallas.
Yes, the calculations are done with 20 percent down (you can see calcs at a 10% down payment on the individual slide for Dallas). Please know that the metro area is considerably larger than just Dallas -- see the metro definitions here http://www.hsh.com/finance/real-estate/metro-area-definitions.html and the methodology can be found on the "About" slide at the end of the group.
Cincinnati, you have got to be kidding, property taxes are ridiculous for new homeowners unless there is an abatement. Not too many of those.
What's your down payment for each of these loans, and is this median list price, or median reported list price, and does it take into account any immediate sweat equity work (fixer-uppers which have real costs higher than what they sell for)?
You can find our methodology for calculating these salaries on the last slide. Here's a link: http://www.hsh.com/finance/mortgage/salary-home-buying-25-cities.html#how-did-we-come-up-with-these-salaries
Nashville, TN these days?
The Nashville metro area is included in the to 50 list of metros; in the third quarter of 2019, it was the 19th most affordable city in our analysis.
Having worked in this industry, I am shocked that the "standard"front and back end ratios are still being touted and promoted as a means of what is affordable for a person or a family (regardless of geographical location)...I would never allow a client to base their affordability on their Gross income and not take taxes, household expenses (basics like electricity, gas, water, cable, etc), emergency fund, and some level of retirement planning into consideration (even as low as 6% of gross income). And yes, debt should also play a role (though that is an individual variable). If we as a country are looking for another housing bubble/crash, using these sorts of calculations will definitely help in making that happen. Either wages need to rise, home prices need to adjust downward, or taxes/expenses need to decrease.
The "standard" 28%/36% ratios have been in place for a long, long time and the market performed well with them (when adhered to, and in conjunction with items such as proper income documentation) in both good times and bad. Also, please know that our calculation does take into account available tax and insurance information. It's admirable that you look deeper into a client's finances, and of course you know that debts do play a role in qualification. However, items such as cable, emergency funds and retirement planning have always been beyond the scope of mortgage qualification and likely always will be.
I'm not sure why you're even in business. These numbers are bogus. Let's start with NY :) If you can't differentiate between LI and NYC you obviously have no idea what you're doing or what you're talking about. A one bedroom in NYC averages around 750K....
While we realize that midtown Manhattan real estate is of course more expensive (as it usually is any center-city review) the information we use is provided by the National Association of Realtors, who uses the Office of Management and Budget definition to define the area covered. We provide this information here: http://www.hsh.com/finance/real-estate/metro-area-definitions.htmlThis covers the "New York City" metro area on which our calculations are based.
Is there a reason Hawaiian and Alaskan metro areas were not considered in this article?
Yes. We provide information covering the 27 largest metropolitan areas (in terms of population, ranked by Census) as a basis for the feature.
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".
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
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.
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.
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
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 ..
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
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.
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
What about Honolulu, Hawaii?
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
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.
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
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!
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.
Richard, We used industry standard front and back-end ratios. Thanks for commenting, Tim Manni, HSH.com
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.
So you don't consider Texas to be in the South, B?
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.
I wish you could make $160k a year and afford a house in the Bay Area. Ha!!!
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.
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.
Why isn't Kansas City, Missouri on here?
Laura, Because we are utilizing the 27-largest metro areas (as defined by the OMB). Thanks for commenting, Tim Manni, HSH.com
Guys, in Atlanta atleast, the pricing is very underestimated. in any reasonable neighborhood, prices are north of 400k atleast.
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
How disappointing, i want to buy a home in NY, Long Island, i think i need a huge raise to do so.
$480,000 in Los Angeles?! Try doubling that! Where are these numbers coming from??
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
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.
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.
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
What is Burlington, VT?
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.
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
Where in nyc can I buy a house for $395k? I would like to know
Ray: Thanks for commenting. It's important to remember that the $395K is the median price number from the National Association of Realtors. It's also the median priced number for the entire metro area, not simply NYC. I think we both agree that it would be quite difficult to buy anything in the Manhattan, for example, for $395K. -Tim Manni, HSH.com.
Your logic for calculating these figures is flawed. Living in DC, saving enough to put down 20% is the obstacle in buying a home.
DC Renter: You say "Your logic for calculating these figures is flawed. Living in DC, saving enough to put down 20% is the obstacle in buying a home." We also provide salary figures for a 10% down payment (which factors in mortgage insurance) in the commentary portion of each slide. Thanks for commenting. -Tim Manni, HSH.com
And Honolulu? Guessing it is #3!!!
A 10 second google search will reveal that the average home price in Manhattan is $1.8 Million. What on earth is being calculated to give NYC a median of $395k?
Tom: "A 10 second google search will reveal that the average home price in Manhattan is $1.8 Million. What on earth is being calculated to give NYC a median of $395k?" In the first slide we indicate that the home price number is the median home price from the National Association of Realtors for the New York METRO AREA, not just Manhattan. Thanks for commenting. -Tim Manni, HSH.com
What estimates are you using for taxes? Seems a little low on the PITI figure for a house that price in the greater Seattle, King County area. Taxes on a $420k house would be in the $4000-5000/yr range right now, which would lead to a payment of $2000-2100/mo. Not a huge difference, but just an observation that got me curious on the source of property tax data for the article.
Greg: You commented: "What estimates are you using for taxes? Seems a little low on the PITI figure for a house that price in the greater Seattle, King County area?" In the final slide we indicate that "We used 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." Thanks for commenting. -Tim Manni, HSH.com
Why would you look at San Antonio but not Austin? Austin has been experiencing huge population growth causing house and rent prices to rise and be unaffordable or too competitive for most.
The "New York City" numbers and the photo of Times Square are incredibly misleading. Click on the link to see the metro areas defined, and you'll find a list of all the primary counties included, and even the secondary outlying counties included when they determined their numbers. Nowhere in the New York list - NOWHERE! - is Manhattan county listed. Manhattan county is literally the island of Manhattan - what most people mean when they say NYC. So to say it costs so little to live in a place called New York City with a picture of Times Square? They should say 5 Boroughs (Queens, Bronx, etc) and show a picture of a bridge or a tunnel. Do not believe that anyone making $100k can actually purchase a home in NYC. Absurd. Believe me, I wish it was true. Apartment living here will suck you dry.
Not even close as far as Boston is concerned...
I'd like to see an expanded version... top 100 cities?
$480,000 house price in LA? Yeah right. Where is this house? Compton next to the gangbangers and drug dealers?
Compton, of course, is one possibility, but also consider that the Los Angeles MSA includes Antelope Valley (Los Angeles County) and Riverside, where lower cost housing is one of the promoted attractions for those who do not immediately crave the beauties of the Mojave Desert.
I live in los angeles suburb, I have no Credit card debt nor car loan or any other loan. our net take home pay is around $70,000 and I am looking for a house to buy in Pasadena, what should be my ideal home loan?
PLEASE STOP USING THE MSA for DC/VA/MD/WV. Home prices in Jefferson County WV are not even in the same ballpark as DC. It would be like comparing a tent in the woods to a home with gold leaf laid by the hands of Michelangelo. Remove counties that are literally 75 miles from the DC city center and you will see that prices will exceed all but SF and NY.
Wish you would have included Nashville, TN since it currently has the highest housing market in the country.
Where's Austin? Because its expensive af here in the central ish area
What about northern Louisiana?
This report is extremely flawed as it did not account for property taxes. In Chicago housing doesn't look too bad until property tax is included.
Good morning! Your article is quite informative and a bit shocking! Some places I would never have imagined are more affordable than I initially would have thought and others are way more than I would have guessed! (Tampa, so LOW?! It's in the Sunshine State where EVERYTHING is expensive! And Portland, so HIGH?! I never would have guessed it was that expensive to live there!! LOL!!) I live in Salt Lake City the last two years and upon moving here, my wife & I were a bit "sticker shocked" by the cost of housing after moving here from Atlanta where we built a 4-bed/2.5 bath house from the ground up for less than $170,000 in 2005. I'm curious to know where Salt Lake's metro would end up on this list, as that would be a useful comparison for my family and I! I would like to talk her into leaving so this kind of information could be tremendously useful. Thanks!
Ever been to Tampa? A quick google search (Can be used for any city not just SLC) told me that "The median home value in Salt Lake City is $314.000" That is this mornings #s.
I understand the entire "housing bubble" in San Franciso is insured against earthquakes by the same companies that insured Lehmen Brothers and other Wall Street banks in 2008.
27 areas seems like a strange number to stop. Can you please calculate the numbers for Honolulu and Las Vegas also? Thank you.
Good luck buying a home in NYC for 395K. Try a meaningful metric next time, like an actual average, which is probably closer to 800K for Brooklyn, and probably higher for Manhattan. Shame on you for telling people they could afford a home in NYC on 86K a year.
Where can one buy a home for $770,300 these days? Not in the SF, peninsula region for sure. Median home prices are above 1 million.
Out here in Dallas you can easaly buy a house for $180,000 It's all about where you want to live.
What about Anchorage, AK?
Can you do this calculation for Honolulu county%u2026 note that NAR uses statistics for Honolulu as the county of Honolulu or the entire island so the #s could be construed as false for the city of Honolulu
I just bought a house in the Riverside county area after looking in the San Diego county area where I have lived for over 30 years. There is no way my realtor would have gotten me a mortgage for that low monthly payment that INCLUDES impound of property taxes 1% AND the cheapest home owners insurance of 50 bucks. I have a near 800 credit score and low debt. Maybe if we signed up for a NO INTEREST Jumbo loan...
These numbers are if you put 20% down.
Wise observation. Realtor's want to sell your as much house as possible to maximize their profit. First house I bought was ok. I was starting my career and my salary increased quickly. Later in my career, I bought a house and went along with standard debt ratio recommendations. My salary was no longer increasing at the same rate. The monthly mortgage payment was uncomfortable. I was essentially married to my hours.
Your stats on Washington are incorrect - unless you are including the entire DC metro area - which is not specified in your data source. The median price for a home - this includes condos - in DC is $537,000. And, fyi, to qualify for $1,800. per month in rent, the income requirement is $74,000. (gross). Please let me know if you need more info, or perhsps, a real estate journalist! Regards, Beth 202-422-4314.
Beth, Our home price data comes from the NAR and is 100% correct. We reiterate as many times as possible that this data pertains to metro areas (including in the title). Thanks for commenting, Tim Manni, HSH.com
I'm self employed. Trying to get an Apx number of what I would need to show on my tax returns for two years in Denver Colorado to qualify for a home between $350- 400,000.?
Kim, Since your numbers jive with what we're showing above, you can use the salary we provide as a benchmark to get started. However, you will need to discuss this with a mortgage lender or broker to determine what exactly you qualify for based on your salary. Thanks for commenting, Tim Manni, HSH.com
Was getting pretty excited until I saw that 20% down payment was your baseline. That no longer reflects the US housing market which has fallen to 14-15% average down payment. That seems like a good number except most of my buyers are either 100% cash or 0-3% down VA/FHA, so maybe a median down payment % in the average price range for owner occupied would be a more reasonable measure.
Jeff, That's why we included info on 10% down in every slide. The intro slide says, "In the commentary section of each slide, we discuss how the required salary would change if you were to put 10 percent down instead of 20 percent." Thanks for commenting, Tim Manni, HSH.com
Very interesting study. I live in the Charleston South Carolina area and by all indications is a very 'hot' real estate market for it's size. Any way you could give me the data for this market?
I feel like that is a low amount for Dallas. if you have 0 debt other than a car payment you would be spending about 2600 per month. I make 59k in dallas and take home 3600 per month after taxes and 401k. I am sure you will also be paying water and garbage in a house. so after you pay all your bills you have 800-1000 left over with a 59k salary. That 800- 1000 has to cover your random fun money plus any savings you can do. how do you save up for when something goes wrong with your appliances or other unexpected expenses. You would be so house poor you can't even afford to furnish it or have any fun at all. And that is for 1 person. If you have more than one person your food expenses will go up. I am sure you other expenses would go up as well. I think in dallas you need to make at least 75k to comfortably afford a 200k house and not have to go thousands in debt if something comes up. And that is after you save up for a 20% down payment.
Mike, Thanks for your comment. You're right, you will need to earn more money to help pay for things like furnishings and any other bills you might have. As we noted, this is the salary needed for the base cost of owning a home: principal, interest, taxes and insurance. And this is the Dallas metro, not just the city. Thanks, Tim Manni, HSH.com
My colleague lives in Honolulu. Why are they excluded from your list of metropolitan areas?
Doc, Thanks for commenting. This list of metros is based on population: 27 largest metro areas. -Tim Manni, HSH.com
There are some flaws with the methodology. The largest cities have fewer single family homes. I would like to see a breakdown of multi unit versus single family homes and see where the averages would be. How would the breakdown be for 15 year mortgages? I put 20% down on my 15 year mortgage. The average person doesn't have 20% to put down on a home. That assumption is a stretch. This analysis is even less realistic. Most people that I know, have 10% down, at best. Lastly, taxes in some locales are much higher than the average, such as NYC. Are those factors calculated in your methodology?
Doc, Thanks for your comment. These calculations are very straightforward. This is not just based on cities, but rather metro areas. A 15-year loan would increase the required salary for sure as the monthly payment would be higher. You're correct, the average person doesn't have 20% to put down, that is why we also provide the required salary based on 10% down in every slide.Yes, property taxes are included. For more on the methodology, please refer to the first and last slides of the slideshow: http://www.hsh.com/finance/mortgage/salary-home-buying-25-cities.html#how-did-we-come-up-with-these-salaries -Tim Manni, HSH.com
Household income of 51,000? Or is family size not factored in?
Daisy, Thanks for commenting. It's the total salary you need, whether single or family total. -Tim Manni, HSH.com
Virginia is a great place to live! Such a beautiful state, and I was not born here everyone! I wandered here from the mid west, looking for a better job. Yes, we may be more expensive than others, as the closer you live to DC the more pricey it becomes! Jobs are plentiful, great schools, free museums, steeped in history, and on and on. Not only should be looking at the prices, but the opportunities for growth and income in your life! We have first time home buyer programs that help you purchase with no monies down! You want to own, there is a way! Retirement does bring challenges with limited incomes, but planning, and maybe relocating might have to happen! Not only money is the issue, it is closeness to great medical care, maybe university to take classes, bus transportation, can you live in place in your home if you are not as mobile, what senior help does the area you choose have, where is your family in time of need? Bottom line, don't leap! Analyze, and realize life changes, so your plan in life must too! I love your charts and information!
Thanks Pat!!
Interesting that the rates fell in every metro area despite the 0 to .25% increase in the Fed range. (Sideways interesting that home prices *rose* in all but three areas %u2014 and those that declined were minimal %u2014at the same time.) I saw from your methodology page that you said, "our 2015 fourth-quarter average interest rate for a 30-year ... " were the basis for rate calculations. What does that mean "our ... average?" Only lenders that have some affiliation with HSH? Or it's a proprietary average you regularly collect/compile?
Paul, Thanks so much for your comment. Yes, the Fed did increase their target for the Fed Funds rate, but the FF rate doesn't have a direct effect on mortgage rates. You may be interested in the following articles: -http://library.hsh.com/articles/more-tools-resources-and-info/mortgage-basics/does-the-federal-funds-rate-affect-mortgage-rates/ -http://library.hsh.com/articles/more-tools-resources-and-info/mortgage-basics/what-moves-mortgage-rates-the-basics/ -http://www.hsh.com/finance/mortgage/latest-move-by-the-federal-reserve.html HSH.com has been a surveyor and publisher of mortgage rates for over 30 years. We call lenders from all around the country each day. Yes, it is a proprietary average we regularly collect/compile. Thanks again for the great comment, Tim Manni, HSH/com
If you buy a house in Chicago on a $58,000 salary, you are probably going to get shot. I would like to see the salary needed to afford a place in Chicago where you could actually survive.
Joe, Thanks for your comment. One thing to remember is that this examines the Chicago metro area, not just the city limits. This salary number is also with a 20% down payment. If you went 10% down, the salary increases to $65,263. -Tim Manni, HSH.com
Chicago would actually be a lot more if you wanted a house in a desired area.
CKB, Thanks for your comment. Remember, this study focuses on "metro area," not simply the city of Chicago. It also factors in a 20% down payment. At 10% down, the salary increases to $65,263. It would be even higher at 5% down. -Tim Manni, HSH.com
How did you arrive at that number? I mean, I get how you came up with the costs for the house, but how did you determine how much you need to make above that? Because by my math, after taxes, insurance, and conservative 401k pay-ins, $919 is more than an every-two-weeks paycheck. So, they can afford a house, but it's taking more than half of their take home pay? So the other check is supposed to pay all the utilities, car, insurance, gas, food, clothes, phone, furniture, appliances, problems, etc.? I hope they don't get cable and go bankrupt. Maybe they won the down payment in a lottery.
Hi Robin -- the methodology we use to determine the salary can be found on the last slide. Please know that we use industry standard guidelines regarding how much can be spent on Principal, Interest, Taxes and Insurance (PITI), which can make up no more than 28 percent of the monthly GROSS (pre-tax) income. 401K contributions and other items are not considered in the calculation.
Want to retire on the coast near Corpus Christi. Do you have those figures? The wife and I will have an income around 50k. Currently live north of Denver in a 250k home. Balance due should be around 130k when we retire.
Hi,can you give similar numbers for Greater Salt Lake City area?
Yea I see what the prices are and I'm on disability which brought my income down by $750.00 ever two weeks but I'm permanent disabled. What can I buy on a $1,900.00 dollar a Month income.nothing to put dwn.
Try the City of Tucson, Arizona, website for down payment assistance programs...of which the city has many.
Check on government programs to provide no downpayment, low interest loans for those in special categories (typically first time buyers with limited income). I was by no means poor but I qualified for a 0 down payment loan in the NYC area. I actually didn't take ti because I wanted to make the down payment and my dad could lend me some money. But there are special programs out there.
Michael, I don't have the rate data readily available, but the median price in SLC Utah is $254,000. That stands to reason that affordability in the SLC area will be close to that of the Baltimore area. Of course, taxes and insurance costs will vary, but that gives you a ballpark. Be sure to contact a local real estate agent to get an exact idea on the price of homes you are interested in. Thanks for your comment, Tim Manni, HSH.com
I'm curious as to how you calculated your monthly payments. I used a mortgage payment calculator for your Boston statistics, and for a 30-year, 4.03% fixed rate mortgage with 20% down (Leaving approximately $360,000 to pay off), I found the estimated monthly payment to be much lower at $1,724.93, more than $400 less than your estimate. Why is your's so high? What am I not factoring in?
GZ, Thanks for writing in. What you are not factoring in is taxes and insurance. We created metropolitan-area average property tax information using data made available from the Census Bureau's American Community Survey (ACS). We use 2011-2013 ACS 3-year estimates, which are the latest available. We used the latest available data for statewide average homeowner insurance premium costs from the Insurance Information Institute. 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. Thanks for writing in with your important question. -Tim Manni, HSH.com
I would like buy house in Atlanta
Haven't seen a home selling for $800K in San Francisco in many decades, so looked up the data. Current median home price is about twice that.
Sk8er, We used the median home price as reported by the National Association of Realtors for the San Francisco metro area, not just the city itself. Thanks for commenting, Tim Manni, HSH.com
Thanks for sharing and writing about the disparity in home purchasing power the country most working people doesn't know how their salary effects their buying power especially in cities like New York and California and not speaking of the taxes on state, county and local level can create a nightmare.
I would really like to see the sqft one would get at these prices.
Eric, Thanks for your comment. Unfortunately the data for square footage does not exist. These median-home prices (half sold for more, half sold for less) come from the National Association of Realtors. -Tim Manni, HSH.com
At first glance, i assumed that San Jose "Silicon Valley" was included in the SF metro area. But, apparently I was mistaken because the OMB link provided by the editors shows a separate listing for that metro. Population must be too small to include? Based on other statistics I've seen, it tops SF prices by over $100k!!!
What are you guys smoking? You will NEVER find a "median home" in Seattle for $385,300! You can't buy a dog house here anymore for $385K. Prices have surged 12% in the last year alone, and are predicted to rise another 7% next year.
Roger, Thanks for the spirited comment. The home price you see is the median-home price (half sold for more, half sold for less) as reported by the National Association of Realtors during the second quarter of 2015 -- new data comes out later this week. It's also important to understand that the NAR's home price number is for the Seattle metro area, not simply the city of Seattle. Thanks for commenting, hope to hear from you after the 3Q15 version is out next week. -Tim Manni, HSH.com.
Living in New York is expensive and no doubt why owning a home is costly in this place. I've been working for many years now and its been my dream to own a house. Right now were still living in an apartment and still working hard to have our own place one day.
Thanks for the intriguing article. This is eye opening, "In the second quarter, home prices and mortgage rates increased in every metro area on our list." I had no idea that were increasing this much nation-wide. It is astonishing how expensive San Francisco is compared to the rest of the cities. I appreciate the time you put into this post!
Dean, Thanks for the kind words, we appreciate it! -Tim Manni, HSH.com
I'm curious which major city is the highest; could you run your algorithm on Honolulu? Today's median price is $730,000 in today's local paper. Does cost of living factor in your salary figure?
Wally, I can ask our data analyst to run the figures for you. No, cost of living is not considered. As stated in the intro: This is the salary you need to earn in order to afford the base cost of owning a home -- the principal, interest, taxes and insurance. Thanks for writing in, Tim Manni, HSH.com
How about the time it takes to save 20% down payment? How long do you have to work at these salaries to save the down payment, while you're renting no doubt. These salaries seem WAY low for the home value.
Britt, You're absolutely right, it's quite difficult to save for a 20% DP. There's no way for us to say how long it would take someone at a given salary to save 20%. Again, you're right, the salaries will increase when you run the numbers for 10% down. We are considering changing the calculation to 10% down instead of 20% down. That might provide a more realistic calculation for most Americans. Thanks, Tim Manni, HSH.com
What is considered a metro area? How far out from the heart of said city do you take into consideration? I live in Falls Church, VA, only 20 minutes from DC and accessible via the DC metro (WMATA); just curious how much of the NOVA area was taken into consideration for WAshington D.C.'s numbers.
Brian, Thanks for writing in. We use the metro area definitions supplied by the Office of Management and Budget (https://www.whitehouse.gov/omb/inforeg_statpolicy). Each metro area is different in terms of size and scope. You said you were in Falls Church, Virginia. According to the OMB, here is your metro area definition: "Washington-Arlington-Alexandria, DC-VA-MD-WV Metropolitan Division District of Columbia, DC; Calvert County, MD; Charles County, MD; Prince George's County, MD; Arlington County, VA; Clarke County, VA; Culpeper County, VA; Fairfax County, VA; Fauquier County, VA; Loudoun County, VA; Prince William County, VA; Rappahannock County, VA; Spotsylvania County, VA; Stafford County, VA; Warren County, VA; Alexandria city, VA; Fairfax city, VA; Falls Church city, VA; Fredericksburg city, VA; Manassas city, VA; Manassas Park city, VA; Jefferson County, WV." Hope this answers your question. I'm here if you have any more. -Tim Manni, HSH.com
This doesn't seem right. There was just an article published about how Long Island Nassau and Suffolk county, is the most expensive place in the United States to live.
John, Thanks for your inquiry. We also saw that Nassau and Suffolk counties were voted most expensive earlier this year (Feb. 2015). However, there are a few things here that separate our distinctions from the one you mentioned: 1. We examined metro areas and not counties. 2. The distinction of most expensive for Nassau and Suffolk factored in far more than just housing costs. It included all types of cost of living factors. We simply looked at real estate and interest rates. 3. Our 27 metros are compiled via populations. We took the 27 metro areas with the highest populations. While there is a Nassau and Suffolk metro area ("Nassau County-Suffolk County, NY Metropolitan Division Nassau County, Suffolk County"), that wasn't in the top-27 in terms of population. There is no doubt that portion of New York state is an expensive place to live. Thanks again for writing in, Tim Manni, HSH.com
MY $12,492.00 YEARLY INCOME GOT ME A $95k HOME IN MARTINSBURG WEST VIRGINIA . .thank you Jesus I bought a home appraised for $95,000.00 which cost me $86,000.00 with $18,000.00 down and the sellers paid $4,000.00 closing cost and MY INCOME WAS $1,041.00 A MONTH veterans disability pension and i was supporting a child in Africa as my only debts. i am a Vietnam era veteran who always pays my bills. I lived out of my car for 17 months to be to save my down payment. My mortgage taxes and insurance are $453.00 a month plus trash and fire of $319.00 a year If i can do this anyone can ... I am not even allowed to rent rooms since my VA pension won't allow me to earn an income. I just grew enough veggies and canned 7 cases of them to last me all winter. Talk about being frugal and responsible HUMPH .. thank you Jesus for being my guide in my life PS: I am trying to save to get a hoop-house greenhouse so i can grow even more food and donate it to my local homeless mission as i was able to do with some of my veggies this summer. NOTE: If you want to help me help others get back to me at [email protected]
Your statement is full of holes. VA comp has nothing to do with income unless you are 100% and deemed unemployable in which case the payment is much much higher. VA comp is also not taxable as income or subject to payroll tax so being a net number is far different from being a gross number. There are many "REAL" disabled vets that will read your story and know you are a "WANNABE".
Daniel, Thanks for writing in and sharing your story. Continued success as a homeowner. -Tim Manni, HSH.com
Thanks for the great work of putting this useful information together. Are you certain the monthly payment includes property taxes? I bought a $319,000 home in Houston. 5% down payment, 30-year fixed rate mortgage at 3.75%. My monthly payment is $2383.01 (P&I $1403.03, insurance $89, PMI $224.69, Tax $666.29). This seems much higher than monthly payments listed here. I am beginning to think I got a raw deal.
Shay, No, you didn't get a raw deal, you only put 5% down so your monthly payment is going to be A LOT higher than our numbers since we are factoring 20% down. You bought a home at 3.75%. You may never see a lower rate in your time as a homeowner. Thanks for writing in, Tim Manni, HSH.com
Shay, 5% is a lot higher than 4%, so yes, the deal you got is a lot worse than those listed here.
These mortgage payments are based on what type of downpayment? 20%? I do not see PMI incorporated and there is a higher percentage of buyers that do not have 20% to put down.
Mary, Thanks for writing in. Yes, as the first slide explains we use 20% down because PMI costs complicate the calculations. But it's a fair point that smaller down payments are realistic options for borrowers these days. We're always looking for ways to improve this model so thanks again for your suggestion. -Tim Manni, HSH.com
Good data and a basic feel for the differences / discrepancies nationwide between markets that have been growing since the "recovery". The reponses are stimulating and entertaining. Keep up the good work!
Not sure if this data really works as it excludes taxes and insurance and related maintenance expenses and simply defines 28% of income as the affordability factor. These highly variable costs from market to market have a significant impact on affordability.
Alan, Thanks for writing in. We disagree with you that our data doesn't work because it clearly states in the intro, in slide one, and even on the final slide that this is the salary you would need to earn in order to afford the principal, interest, taxes and insurance payments... This is just the salary you need to afford those items (not including maintenance, utility bills, spending money, etc.). You are correct in that utility bills and maintenance costs will vary with the location and condition of the home. That is why we could not include them. Borrowers must be cognoscente of those costs. Think of it this way, when applying for a loan, your lender doesn't factor in your cable or cellphone bill -- they don't care if you watch HBO or have the latest iphone. Again, you're spot on with the fact that all potential borrowers need to consider all the other costs that go into owning a home besides simply the monthly payment. Thanks again for writing in, Tim Manni (HSH.com)
This is based on avg. home prices sold, which is good. However, do you have anything on new vs. used?
Joe, Thanks for writing in. Just as a reminder, this is existing median home sales as reported by the Realtors. There are new-home sale numbers out there, but it's a national number, not broken down by metro. There is no new-vs-used comparison data that we know of. We try to utilize the best data sets that are available to us. Thanks again for writing in, Tim Manni, HSH.com
Given the disparity in home size, neighborhood etc, price /sf would be a more useful comparison in this analysis.
Joe, Thanks for writing in. As I have mentioned in other comments, we are working with the data sets that are available -- the NAR doesn't publish home price and square footage, no home price source that I know of does. And if the NAR did publish price and square footage, it would likely be median square footage. If you have a home price you would like us to calculate a salary for just let us know. Thanks, Tim Manni, HSH.com
Charlotte is #17; above Seattle, Portland, Detroit or Denver.
William,We are going to work on getting Charlotte in the next go round. Thanks for writing in, Tim Manni, HSH.com
So... this article is bogus... what about what you get for your money. Tiny House... What a joke.
Mark, Sorry to hear that you found this content "bogus." The data speaks for itself, though: it's metro area median home prices. Half the houses sold for more, half sold for less. I'm not sure where you live, but this data doesn't produce a salary for just the city, but rather the surrounding areas which define the given metro area. If you have a home price in mind we could calculate the required salary for you in hopes of making this content more actionable for you. We're happy to oblige, thanks, Tim Manni, HSH.com
Weew.....Los Angles is fine...
Put Indianapolis on your list. It's the 14th biggest city.
Where are the statistics for Austin, Texas. It seemingly has the highest market but least affordable. Thank you for your answer
Elka, thanks for your comment. We are always looking for ways to improve our salary slideshow. So far, we have examined 27 cities in the US with the highest populations. I'm not sure what you mean by "[Austin] seemingly has the highest market but least affordable." What did you mean by "highest market"? Thanks again for writing in, looking forward to hearing back from you. -Tim Manni (author)
Very useful article