{"id":1434486,"date":"2023-10-23T23:20:00","date_gmt":"2023-10-24T03:20:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1434486"},"modified":"2023-10-23T23:20:00","modified_gmt":"2023-10-24T03:20:00","slug":"heres-what-you-need-to-earn-to-own-a-home-in-50-american-cities","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/heres-what-you-need-to-earn-to-own-a-home-in-50-american-cities\/1434486\/","title":{"rendered":"Here’s What You Need To Earn To Own A Home In 50 American Cities"},"content":{"rendered":"

Here’s What You Need To Earn To Own A Home In 50 American Cities<\/span><\/p>\n

\n

Once a fundamental part of the American dream, the ability to own a home is drifting farther and farther away for many Americans.<\/p>\n

But, as Visual Capitalist’s Pallavi Rao details below,<\/a> between skyrocketing prices,\u00a0stagnating wages<\/a>, and now rising interest rates, the deck seems to be increasingly stacked against home ownership.<\/strong><\/p>\n

Using May 2023 data tabulated by\u00a0Home Sweet Home<\/a>, we map out the annual salary needed to afford a 30-year mortgage (at 6.37%) to buy a home in America\u2019s 50 most populous metropolitan areas.<\/p>\n

<\/a><\/p>\n

The monthly minimum mortgage payment includes taxes and insurance as well, and is capped at roughly one-third of the income. This analysis also assumes that the homeowner will put down a 20% down payment.<\/p>\n

The Least and Most Affordable American Cities to Own a Home<\/h2>\n

At the top of the list, and at the very west of the country,\u00a0San Jose<\/strong>\u00a0is the least affordable city to own a home for the average American.<\/p>\n

One would have to earn at least $374,000 a year to afford a $1.6 million dollar home in the city.<\/p>\n

To put those numbers into perspective, the median American annual income is\u00a0$75,000<\/strong>, about one-fifth what\u2019s required to buy a home in San Jose.<\/p>\n

Here\u2019s a look at the annual earnings needed to afford a home in all 50 largest cities in the U.S., ranked from least to most affordable.<\/p>\n

Rank
\n\t\t\tMetro Area
\n\t\t\tState
\n\t\t\tMedian Home Price
\n\t\t\tAnnual Salary
\n\t\t1
\n\t\t\tSan Jose
\n\t\t\tCalifornia
\n\t\t\t$1,618,400
\n\t\t\t$373,696
\n\t\t2
\n\t\t\tSan Francisco
\n\t\t\tCalifornia
\n\t\t\t$1,192,600
\n\t\t\t$282,167
\n\t\t3
\n\t\t\tSan Diego
\n\t\t\tCalifornia
\n\t\t\t$880,000
\n\t\t\t$209,110
\n\t\t4
\n\t\t\tLos Angeles
\n\t\t\tCalifornia
\n\t\t\t$746,800
\n\t\t\t$181,106
\n\t\t5
\n\t\t\tSeattle
\n\t\t\tWashington
\n\t\t\t$699,300
\n\t\t\t$170,340
\n\t\t6
\n\t\t\tBoston
\n\t\t\tMassachusetts
\n\t\t\t$644,400
\n\t\t\t$165,239
\n\t\t7
\n\t\t\tNew York City
\n\t\t\tNew York
\n\t\t\t$577,300
\n\t\t\t$160,233
\n\t\t8
\n\t\t\tDenver
\n\t\t\tColorado
\n\t\t\t$636,100
\n\t\t\t$150,622
\n\t\t9
\n\t\t\tWashington, D.C.
\n\t\t\tN\/A
\n\t\t\t$557,200
\n\t\t\t$139,911
\n\t\t10
\n\t\t\tMiami
\n\t\t\tFlorida
\n\t\t\t$560,000
\n\t\t\t$137,574
\n\t\t11
\n\t\t\tPortland
\n\t\t\tOregon
\n\t\t\t$556,800
\n\t\t\t$136,147
\n\t\t12
\n\t\t\tRiverside\/San
\n\t\t\tBernardino
\n\t\t\tCalifornia
\n\t\t\t$550,000
\n\t\t\t$133,607
\n\t\t13
\n\t\t\tAustin
\n\t\t\tTexas
\n\t\t\t$467,900
\n\t\t\t$128,995
\n\t\t14
\n\t\t\tSacramento
\n\t\t\tCalifornia
\n\t\t\t$500,000
\n\t\t\t$125,304
\n\t\t15
\n\t\t\tSalt Lake City
\n\t\t\tUtah
\n\t\t\t$522,700
\n\t\t\t$122,717
\n\t\t16
\n\t\t\tProvidence
\n\t\t\tRhode Island
\n\t\t\t$417,000
\n\t\t\t$112,281
\n\t\t17
\n\t\t\tOrlando
\n\t\t\tFlorida
\n\t\t\t$419,900
\n\t\t\t$104,772
\n\t\t18
\n\t\t\tDallas
\n\t\t\tTexas
\n\t\t\t$372,400
\n\t\t\t$103,460
\n\t\t19
\n\t\t\tPhoenix
\n\t\t\tArizona
\n\t\t\t$439,700
\n\t\t\t$103,112
\n\t\t20
\n\t\t\tRaleigh
\n\t\t\tNorth Carolina
\n\t\t\t$420,000
\n\t\t\t$102,572
\n\t\t21
\n\t\t\tLas Vegas
\n\t\t\tNevada
\n\t\t\t$431,400
\n\t\t\t$101,310
\n\t\t22
\n\t\t\tTampa
\n\t\t\tFlorida
\n\t\t\t$390,000
\n\t\t\t$97,387
\n\t\t23
\n\t\t\tMinneapolis
\n\t\t\tMichigan
\n\t\t\t$361,500
\n\t\t\t$94,466
\n\t\t24
\n\t\t\tHartford
\n\t\t\tConnecticut
\n\t\t\t$314,900
\n\t\t\t$93,861
\n\t\t25
\n\t\t\tCharlotte
\n\t\t\tNorth Carolina
\n\t\t\t$387,200
\n\t\t\t$93,735
\n\t\t26
\n\t\t\tJacksonville
\n\t\t\tFlorida
\n\t\t\t$370,000
\n\t\t\t$93,422
\n\t\t27
\n\t\t\tBaltimore
\n\t\t\tMaryland
\n\t\t\t$357,800
\n\t\t\t$93,378
\n\t\t28
\n\t\t\tNashville
\n\t\t\tTennessee
\n\t\t\t$385,800
\n\t\t\t$93,168
\n\t\t29
\n\t\t\tChicago
\n\t\t\tIllinois
\n\t\t\t$321,000
\n\t\t\t$92,868
\n\t\t30
\n\t\t\tHouston
\n\t\t\tTexas
\n\t\t\t$327,000
\n\t\t\t$91,826
\n\t\t31
\n\t\t\tMilwaukee
\n\t\t\tWisconsin
\n\t\t\t$339,600
\n\t\t\t$89,752
\n\t\t32
\n\t\t\tAtlanta
\n\t\t\tGeorgia
\n\t\t\t$354,300
\n\t\t\t$89,198
\n\t\t33
\n\t\t\tRichmond
\n\t\t\tVirginia
\n\t\t\t$362,300
\n\t\t\t$88,769
\n\t\t34
\n\t\t\tSan Antonio
\n\t\t\tTexas
\n\t\t\t$320,500
\n\t\t\t$88,683
\n\t\t35
\n\t\t\tPhiladelphia
\n\t\t\tPennsylvania
\n\t\t\t$315,300
\n\t\t\t$87,293
\n\t\t36
\n\t\t\tVirginia Beach
\n\t\t\tVirginia
\n\t\t\t$313,200
\n\t\t\t$79,336
\n\t\t37
\n\t\t\tKansas City
\n\t\t\tMissouri
\n\t\t\t$291,000
\n\t\t\t$76,147
\n\t\t38
\n\t\t\tColumbus
\n\t\t\tOhio
\n\t\t\t$284,700
\n\t\t\t$76,133
\n\t\t39
\n\t\t\tIndianapolis
\n\t\t\tIndiana
\n\t\t\t$289,300
\n\t\t\t$71,409
\n\t\t40
\n\t\t\tNew Orleans
\n\t\t\tLouisiana
\n\t\t\t$265,200
\n\t\t\t$68,946
\n\t\t41
\n\t\t\tMemphis
\n\t\t\tTennessee
\n\t\t\t$268,600
\n\t\t\t$68,005
\n\t\t42
\n\t\t\tBirmingham
\n\t\t\tAlabama
\n\t\t\t$276,500
\n\t\t\t$67,773
\n\t\t43
\n\t\t\tCincinnati
\n\t\t\tOhio
\n\t\t\t$252,200
\n\t\t\t$66,260
\n\t\t44
\n\t\t\tBuffalo
\n\t\t\tNew York
\n\t\t\t$206,800
\n\t\t\t$63,386
\n\t\t45
\n\t\t\tSt Louis
\n\t\t\tMissouri
\n\t\t\t$231,100
\n\t\t\t$63,260
\n\t\t46
\n\t\t\tDetroit
\n\t\t\tMichigan
\n\t\t\t$227,000
\n\t\t\t$62,758
\n\t\t47
\n\t\t\tLouisville
\n\t\t\tKentucky
\n\t\t\t$246,000
\n\t\t\t$62,741
\n\t\t48
\n\t\t\tOklahoma City
\n\t\t\tOklahoma
\n\t\t\t$227,300
\n\t\t\t$62,161
\n\t\t49
\n\t\t\tCleveland
\n\t\t\tOhio
\n\t\t\t$191,400
\n\t\t\t$55,515
\n\t\t50
\n\t\t\tPittsburgh
\n\t\t\tPennsylvania
\n\t\t\t$175,000
\n\t\t\t$50,316
\n\t\t\u00a0
\n\t\t\tNational
\n\t\t\t\u00a0
\n\t\t\t$371,200
\n\t\t\t$97,204<\/p>\n

Other\u00a0Californian<\/strong>\u00a0cities, San Francisco (ranked 2nd), San Diego (3rd), and Los Angeles (4th) all require an annual income of at least $180,000 to attempt home ownership within their metropolitan boundaries.<\/p>\n

Boston (ranked 6th) and New York (ranked 7th) represent unaffordability on the\u00a0East Coast<\/strong>, both requiring at least $160,000 a year to buy homes there.<\/p>\n

It\u2019s not just the coasts that are expensive however. To buy a home in Denver (ranked 8th) and Salt Lake City (15th) means earning more than $120,000 a year.<\/p>\n

However, cities in the\u00a0Midwest<\/strong>\u00a0and\u00a0South<\/strong>, like Pittsburgh, Detroit, Oklahoma City, and Louisville, are far more affordable, requiring less than $63,000 a year to buy a home.<\/p>\n

Interest Rates Rock Home Ownership Chances<\/h2>\n

Aside from the obvious price differences in\u00a0housing markets<\/a>, a key factor that has elevated income requirements across the board is the rapid rise in interest rates in the last year. In fact the average 30-year mortgage has\u00a0pushed past 7%<\/a>, the highest it\u2019s been since the 2000s.<\/p>\n

This means that while the median price of a house in San Jose has actually come down between 2022 and 2023, the minimum monthly payment has increased from $7,717 to $8,720 this year.<\/p>\n

Country
\n\t\t\tAssistance (USD)
\n\t\t\tTop Activity
\n\t\t\ud83c\udde6\ud83c\uddeb Afghanistan
\n\t\t\t$1.5 billion
\n\t\t\tHumanitarian Assistance
\n\t\t\ud83c\uddea\ud83c\uddf9 Ethiopia
\n\t\t\t$1.4 billion
\n\t\t\tEmergency Food Assistance
\n\t\t\ud83c\uddef\ud83c\uddf4 Jordan
\n\t\t\t$1.3 billion
\n\t\t\tCash Transfer
\n\t\t\ud83c\uddfe\ud83c\uddea Yemen
\n\t\t\t$1.1 billion
\n\t\t\tEmergency Food Assistance
\n\t\t\ud83c\uddf8\ud83c\uddf8 South Sudan
\n\t\t\t$1.0 billion
\n\t\t\tEmergency Food Assistance
\n\t\t\ud83c\udde8\ud83c\udde9 DRC
\n\t\t\t$891 million
\n\t\t\tEmergency Food Assistance
\n\t\t\ud83c\uddf8\ud83c\uddfe Syria
\n\t\t\t$844 million
\n\t\t\tHumanitarian Assistance
\n\t\t\ud83c\uddf3\ud83c\uddec Nigeria
\n\t\t\t$828 million
\n\t\t\tGlobal Health Supply Chain
\n\t\t\ud83c\udde8\ud83c\uddf4 Colombia
\n\t\t\t$761 million
\n\t\t\tCounter-Narcotics
\n\t\t\ud83c\uddf8\ud83c\udde9 Sudan
\n\t\t\t$620 million
\n\t\t\tEmergency Food Assistance<\/p>\n

So to afford a\u00a0median-priced home<\/a>\u00a0in the country, an American needs to earn closer to\u00a0$100,000 a year<\/strong>, up from $75,500 in 2022. And even then, they would be priced out of owning a home in nearly half of the 50 largest cities in the country.<\/p>\n

As a result Americans may yet further delay home ownership. Renting is now a far more attractive option, thanks to the biggest difference between\u00a0rent and mortgages<\/a>\u00a0in over 50 years.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 10\/23\/2023 – 19:20<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/personal-finance\/heres-what-you-need-earn-own-home-50-american-cities<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

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