Map Shows How Much Income You Need to Become a Homeowner
Summary
A study found that, on average, Americans need to earn about $120,000 per year to afford a home, which is much higher than the current median household income of $81,604. The research looked at 200 large metro areas and found large differences in affordability depending on location.Key Facts
- The average monthly cost of owning a home in the U.S. is around $2,819.
- To afford this, an annual income of $120,796 is needed, assuming a 10% downpayment.
- The national median household income is $81,604, which is almost 50% less than what is needed.
- Affordability is measured by the 28/36 rule, meaning spending no more than 28% of gross income on housing.
- Median incomes last fully matched homeownership costs nationwide in 2015.
- The most affordable metro is Huntington, West Virginia, where $53,650 yearly income is needed.
- The least affordable metros are mostly in California, with San Jose requiring over $500,000 annual income.
- Other expensive metros include San Francisco, Los Angeles, and Honolulu, where incomes required far exceed the median household earnings.
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