According to a recent analysis of the mortgage analytics firm HSHHome ownership in America’s biggest cities has become even more unaffordable for all but the wealthiest residents.
A household needs to earn $463,887 to afford a median-priced homein San Jose, California, making it the most expensive of the 50 largest cities in the United States. The estimate assumes no more than 28% of gross income will be spent on housing costs and a 20% down payment, as well as an average mortgage rate of 7.16% for borrowers good or excellent credit rating.
In the 50 largest cities in the United States, the income needed to cover mortgage principal, interest, property taxes and homeowner’s insurance payments averages $104,339, well above income – median household income of $74,580, according to US Census data. Not surprisingly, the income required to buy a home is higher in America’s largest cities, where there is strong demand for housing due to job opportunities, especially in the high paying fields of technology, finance and medical care.
Not surprisingly, the income required to buy a home is higher in America’s largest cities, where demand for housing is strong. because of job opportunitiesespecially in the high paying fields of technology, finance, and health care.
Another factor is the chronic housing shortage especially hungry in Californiawhich helps explain why median home prices in some of the state’s cities, such as San José, are double the national average of $412,300, according to the United States Census Data.
Here’s a look at the 15 most expensive cities to buy a home, based on the income needed to buy a median-priced property in that market.
1. Saint Joseph
- Required income: $463,887
- Median home price: $1.84 million
2. San Francisco
- Required income: $336,170
- Median home price: $1.3 million
3. San Diego
- Required income: $241,784
- Median home price: $981,000
4. Los Angeles
- Required income: $207,030
- Median home price: $823,000
5. Seattle
- Required income: $191,332
- Median home price: $755,300
6. New York City
- Required income: $186,123
- Median home price: $659,200
7. Boston
- Required income: $186,059
- Median home price: $704,700
8. Denver
- Income Required Income: $160,874
- Median home price: $651,000
9. Miami
- Required income: $159,528
- Median home price: $625,000
10. Washington, DC
- Required income: $155,370
- Median home price: $600,200
11. Riverside/San Bernardino, California
- Required income: $146,792
- Median home price: $579,900
12. Portland, Oregon
- Required income: $146,483
- Median home price: $574,000
13. Sacramento, California
- Required income: $139,283
- Median home price: $533,900
14. Austin, Texas
- Required income: $135,333
- Median home price: $466,700
15. Salt Lake City
- Required income: $134,692
- Median home price: $551,200
Data for this study was collected using median home prices from the National Association of Realtors and Freddie Mac’s 30-year fixed mortgage rates for the first quarter of 2024.
Mortgage rates for San Jose and San Francisco were 7.16%, as median home prices in these cities qualify for large loan sizes. Calculations for all other cities used mortgage rates of 6.75%. Data for large loans (typically over $700,000 in most markets) were obtained from the Mortgage Bankers Association.
Property taxes were calculated using US Census data for each city, and insurance costs are based on average rates for each state, using data from the Insurance Information Institute.
he is article first published in English by Mike Winters for our sister network CNBC.com. For more from CNBC enter here.
2024-08-12 19:56:41
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