How much money do you need to make in order to afford a home?
Using data from the National Association of REALTORS®, mortgage site HSH.com pinpointed the minimum salary required to pay for the principal loan amount, interest, taxes, and insurance payments on a median-priced home in some of the largest metro areas in the country.
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Nationwide, buyers would need to earn about $51,247 to afford a median-priced home of $217,300, assuming a 20 percent down payment and a 4.37 percent interest rate, according to HSH.com.
However, the minimum income needed to afford a home in specific areas can be much higher. Here are the five metros of the 27 HSH.com analyzed where buyers would need to have the highest salaries to afford a median-priced home there:
San Francisco
Salary needed: $145,351
Median home price: $744,400
Monthly payment (PITI): $3,392
San Diego
Salary needed: $101,683
Median home price: $517,800
Monthly payment (PITI): $2,373
Los Angeles
Salary needed: $96,514
Median home price: $481,900
Monthly payment (PITI): $2,252
New York City
Salary needed: $92,271
Median home price: $410,800
Monthly payment (PITI): $2,153
Boston
Salary needed: $84,476
Median home price: $399,900
Monthly payment (PITI): $1,971
On the other hand, these are the metros that would require the least amount of salary to purchase a median-priced home there:
Pittsburgh
Salary needed: $32,373
Median home price: $136,700
Monthly payment (PITI): $755
Cleveland
Salary needed: $33,909
Median home price: $129,900
Monthly payment (PITI): $791
Tampa
Salary needed: $35,732
Median home price: $145,000
Monthly payment (PITI): $834
Cincinnati
Salary needed: $35,765
Median home price: $149,000
Monthly payment (PITI): $835
St. Louis
Salary needed: $35,800
Median home price: $150,200
Monthly payment (PITI): $835
Source: “The Salary You Must Earn to Buy a Home in 27 Metros,” HSH.com (Dec. 1, 2014)
