The Salary Needed to Buy a Home in 50 U.S. Metro Areas

The homeownership rate nationwide is 64.8 percent, slowly reversing a downward trend that started in 2004.

The data for the map below comes from the mortgage information site HSH Associates.

The Salary Needed to Buy a Home in 50 U.S. Metro Areas
howmuch.net

The median home in the United States costs about $257,600. With a 20 percent down payment and a 4.90 percent mortgage rate, and taking into account what’s needed to pay principal, interest, taxes, and insurance on the home, it would mean a prospective buyer would need to have $61,453.51 in salary to afford such a purchase.

The most expensive metros are located in California. For example, San Jose requires the highest salary ($254,835.73). On the flip side, Pittsburgh only requires a salary of $37,659.86 to buy a median-priced home.

The ten most expensive metro areas with the highest salary required for buying a home

  1. San Jose – $254,835.73
  2. San Francisco – $198,978.01
  3. San Diego – $131,640.79
  4. Los Angeles – $123,156.01
  5. Boston – $106,789.93
  6. New York City – $105,684.33
  7. Seattle $489,600 – $105,367.89
  8. Washington, D.C. – $94,408.70
  9. Denver – $91,672.45
  10. Portland – $85,173.08

The ten cheapest metro areas with the lowest salary required for buying a home

  1. Pittsburgh – $37,659.86
  2. Cleveland – $40,437.72
  3. Oklahoma City – $41,335.41
  4. Memphis – $41,400.93
  5. Indianapolis – $42,288.92
  6. Louisville – $42,323.15
  7. Cincinnati – $43,429.97
  8. St. Louis – $44,215.56
  9. Birmingham – $44,593.35
  10. Buffalo – $45,698.05

The salary you must earn to buy a home in the 50 largest metros

Metro AreaStateMedian Home PriceMonthly Payment (PITI)Salary Needed
San JoseCA1,250,0005,946.17254,835.73
San FranciscoCA952,2004,642.82198,978.01
San DiegoCA626,0003,071.62131,640.79
Los AngelesCA576,1002,873.64123,156.01
BostonMA460,3002,491.76106,789.93
New York CityNY403,9002,465.97105,684.33
SeattleWA489,6002,458.58105,367.89
Washington, D.C.417,4002,202.8794,408.70
DenverCO438,3002,139.0291,672.45
PortlandOR389,0001,987.3785,173.08
SacramentoCA363,0001,890.7181,030.42
MiamiFL350,0001,859.9579,712.22
AustinTX310,4001,859.4079,688.61
Riverside/San BernardinCA360,0001,832.4178,531.85
ProvidenceRl294,2001,736.7274,430.80
Salt Lake CityUT341,0001,654.8270,920.97
BaltimoreMD280,2001,550.3966,445.35
ChicagoIL243,3001,540.4266,018.14
DallasTX254,9001,537.2665,882.49
HartfordCT226,9001,522.6365,255.37
MinneapolisMN271,2001,496.4664,134.21
HoustonTX237,9001,455.9162,396.25
Las VegasNV295,1001,439.4461,690.28
OrlandoFL265,0001,433.9761,456.04
RaleighNC276,9001,430.0861,289.26
MilwaukeeWl243,8001,424.8861,066.27
San AntonioTX229,1001,384.0259,315.21
PhiladelphiaPA224,6001,374.1958,894.00
JacksonvilleFL246,9001,346.5457,708.92
PhoenixAZ272,7001,343.4257,575.01
NashvilleTN264,0001,340.8157,463.36
RichmondVA256,5001,319.8056,562.92
TampaFL235,0001,285.7755,104.27
CharlotteNC235,4001,226.3052,555.63
Virginia BeachVA224,0001,212.0651,945.53
ColumbusOH200,0001,164.5849,910.55
AtlantaGA216,1001,162.9449,840.16
Kansas CityMO204,0001,155.4049,516.98
New OrleansLA206,6001,143.6949,015.08
DetroitMl186,3171,092.0746,802.89
BuffaloNY154,2001,066.2945,698.05
BirminghamAL202,3001,040.5144,593.35
St LouisMO174,1001,031.7044,215.56
CincinnatiOH169,4001,013.3743,429.97
LouisvilleKY180,100987.5442,323.15
IndianapolisIN185,200986.7442,288.92
MemphisTN174,000966.0241,400.93
Oklahoma CityOK161,000964.4941,335.41
ClevelandOH150,100943.5540,437.72
PittsburghPA141,625878.7337,659.86

Data: www.hsh.com

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