There are 5 places in the US where you need to make over $100,000 to afford a home
Several of the priciest housing markets in the country are found in the American West.
In the last quarter of 2016, the median cost of a single-family home in the region rose to $348,800, up nearly 8% from the previous year and a greater increase than any other region, according to the National Association of Realtors (NAR).
By contrast, the current US median home price is $232,200.
"Depressed new and existing inventory conditions led to several of the largest metro areas seeing near or above double-digit appreciation, which has pushed home values to record highs in a slight majority of markets," said Lawrence Yun, NAR chief economist.
As supply lags behind demand, and prices and mortgage rates continue to rise, homebuyers entering the market may find it increasingly unaffordable to buy a home.
Using NAR's data on housing affordability, we discovered the top-five US metro areas where the minimum salary required to qualify for a mortgage, with 20% down, is above $100,000. NAR assumes a mortgage rate of 3.9% for all areas, with the monthly principle and interest payment limited to 25% of income.
While the salary needed to buy in these areas is exceptional, purchasing a home in a number of markets across the country remains affordable, with required salaries at or below the median household income of $70,831. The average qualifying income for the US as a whole is $42,962.
Below, check out how much you need to earn to buy a home, and what the median home will cost you, in the most expensive markets.
The following markets are based on metropolitan statistical areas, with the exception of Anaheim-Santa Ana-Irvine, which is a metropolitan division.
5. San Diego-Carlsbad, California
Population: 3,299,521
Median home cost: $593,000
Salary needed to buy: $108,410
4. Urban Honolulu, Hawaii
Population: 998,714
Median home cost: $740,200
Salary needed to buy: $135,320
3. Anaheim-Santa Ana-Irvine, California
Population: 3,169,776
Median home cost: $745,200
Salary needed to buy: $136,234
2. San Francisco-Oakland-Hayward, California
Population: 4,656,132
Median home cost: $837,500
Salary needed to buy: $153,108
1. San Jose-Sunnyvale-Santa Clara, California
Population: 1,976,836
Median home cost: $1,005,000
Salary needed to buy: $183,730
Now see the most expensive area for renters:
See Also:
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