Buying a House in the U.S.? You'll Need This Salary
As a traveler at heart, I've always rented properties and been very happy about it, but as I enter my mid-thirties I've been struck with the sudden urge to buy my own home. It could also have something to do with my son's yearning to get a family dog, which isn't going to happen in our small Los Angeles apartment. I already had a pretty realistic view of house prices in the U.S. before reading the HSH.com report, but now my jump from renter to homeowner is looking even more distant. If I want to buy a home in Los Angeles I will need to have a median annual salary of $99,500 to buy a home worth $506,800, and I'm pretty sure homes in my area are twice as expensive. Scroll down to see how much you need to earn to buy a home in six major American cities.
If you are interested in owning a home in this pretty city, then you'll need an annual salary of $64,112 with home prices averaging $290,000. Even though there hasn't been much growth, HSH reports the required salary in the Miami metro is up $822 thanks to higher mortgage rates. If you have a 10% deposit, you will need more than $74,000.
If you earn $66,507 annually then you can buy a house in Portland for $319,300 with monthly payments around $1500. But HSH states that if you can't afford to pay down a 20% down payment then your affordability goes down. If you put 10% down, then the loan amount goes up to nearly $32,000 and you'll be hit with a monthly PMI (private mortgage insurance) cost of $105, which subsequently raises your required salary to $77,659.
With an average home price of $386,300 you'll need a salary of $79,283 to buy a home in Seattle. But a Seattle-area resident told HSH.com that “you can't buy a dog house [in Seattle] anymore for $385,000. Prices have surged 12 percent in the last year alone.” And if you put a 10% down payment it will up your required salary to $92,823.
New York City, New York
The Big Apple is high up on our wish list of places to live, but you'll need a minimum salary of $91,497 to buy a home worth $410,500. Monthly payments are around $2134. Thanks to a mild increase in mortgage rates, the required salary only increased by $747 and that only applies if you’re putting 20% down. For those putting 10% down, the salary jumps to $105,763.
Los Angeles, California
Despite needing a $99,527 salary to buy a home worth $506,800, L.A. isn't the most expensive metro area on the HSH.com list. According to their report, the Los Angeles metro area had the highest salary jump at over $11,000, but you'll need another $19,491 if you only put a 10% down payment.
San Francisco, California
If you plan on moving to Silicon Valley, you'll need to get an awesome-paying job first. The minimum salary is $153,152 and average house prices are $809,400 with monthly payments of $3573. According to HSH.com, if you can’t afford a 20% down payment (which is about $161,880) then a 10% down payment will mean you'll need a salary that pays $32,000 more per year.
If you want to buy a home then you will need to start budgeting—shop our notepad below.
To read the complete list of 27 U.S. cities, visit HSH.com.
Are you in the market for buying your own home? Would you move to a city that has better housing prices? Share your thoughts below.