Here’s How Much You Need To Make To Afford a Home on the East Coast
The cost of purchasing a home has reached new levels since the onset of the COVID-19 pandemic. A recent Redfin report indicated that homebuyers today must earn about $114,627 to afford the typical U.S. home. This figure is up about 15% (or $15,285) from just a year ago and up more than 50% since the start of the pandemic. This is the highest annual income necessary to afford a home on record.
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The reality? That’s about $40,000 more than the typical American household currently earns. The cost of a home varies based on which part of the U.S. you’re looking to buy. However, many popular East Coast cities are more expensive than average.
Rising Home Prices And Record High Mortgage Rates Are Largely To Blame
The two biggest factors contributing to home affordability are rising prices coupled with high mortgage rates.
According to the Federal Reserve Bank of St. Louis, the average rate on a 30-year fixed mortgage is 6.9%. While this is down from mortgage rates in 2023 which peaked at over 8%, it’s still exorbitant and adds a significant cost to monthly mortgage payments.
At the same time, a typical U.S. home sold for about $420,000 in August 2023. This is up 3% year over year and just about $12,000 shy of the all-time high hit in mid-2022.
The Cost Of Buying a Home In 16 East Coast Cities
According to Visual Capitalist, these are the prices of homes on the East Coast in 16 cities along with the average annual salary needed to afford a home, ranked from highest to lowest salary:
Boston, Massachusetts
2023 median home value: $644,400
Average annual salary needed: $165,239
New York, New York
2023 median home value: $577,300
Average annual salary needed: $160,233
Washington, D.C.
2023 median home value: $557,200
Average annual salary needed: $139,911
Miami, Florida
2023 median home value: $560,000
Average annual salary needed: $137,574
Providence, Rhode Island
2023 median home value: $417,000
Average annual salary needed: $112,281
Orlando, Florida
2023 median home value: $419,900
Average annual salary needed: $104,772
Raleigh, North Carolina
2023 median home value: $420,000
Average annual salary needed: $102,572
Tampa, Florida
2023 median home value: $390,000
Average annual salary needed: $97,387
Hartford, Connecticut
2023 median home value: $314,900
Average annual salary needed: $93,861
Charlotte, North Carolina
2023 median home value: $387,200
Average annual salary needed: $93,735
Jacksonville, Florida
2023 median home value: $370,000
Average annual salary needed: $93,422
Baltimore, Maryland
2023 median home value: $357,800
Average annual salary needed: $93,378
Atlanta, Georgia
2023 median home value: $354,300
Average annual salary needed: $89,198
Richmond, Virginia
2023 median home value: $362,300
Average annual salary needed: $88,769
Philadelphia, Pennsylvania
2023 median home value: $315,300
Average annual salary needed: $87,293
Virginia Beach, Virginia
2023 median home value: $313,200
Average annual salary needed: $79,336
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This article originally appeared on GOBankingRates.com: Here’s How Much You Need To Make To Afford a Home on the East Coast
