A six-figure salary is required to buy a home in these cities
Even with a six-figure salary, buying a home in San Francisco may not be a good idea.
The most expensive city in the US to buy a home is San Francisco, where home buyers need a salary of $ 206,760 to live comfortably and buy a home. One of the cheapest places to buy a home was Jackson, Miss., Where homebuyers only need $ 44,129 a year to buy a home and step with other cost of living, according to Finder's analysis of the Zillow, Urban Institute, and Census data to keep. an Australian fintech company.
“Given their salary, this can give people an idea of whether it will always be difficult [to make housing allowance with the cost of living]. Potential homeowners can look at other options [locations] and find a job that is more comfortable for their finances, ”said Britny Lawhorn, assistant mortgage editor, Finder.
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The most expensive city in the US to buy a home is San Francisco, where home buyers need a salary of $ 206,760 to live comfortably and buy a home.
According to the study, a six-figure salary was required in San Jose ($ 151,619), Los Angeles ($ 109,985), and San Diego ($ 101,023). The median household income in California in 2019, according to census data, was $ 91,377 - making home purchases unaffordable for most Californians. Two-earner households made an average of $ 114,555 per year, which would make for comfortable home ownership in Los Angeles (recommended $ 112,570).
“One thing we noticed is that California is the most expensive. Many factors determine how expensive it is to live in a particular state, such as: B. State taxes, ”said Lawhorn. Seattle was also one of the most expensive locations with a suggested pre-home salary of $ 112,570 (the median household income in Seattle was $ 102,586).
Cityscape of downtown Birmingham, Alabama, USA at dusk.
In Jackson, miss. And Birmingham, Ala., Homes typically cost less than $ 70,000. Low cost of living means residents need to earn less than $ 49,000 to live comfortably and own a home.
“Many of the affordable areas are in the southeast. Alabama, Tennessee, Georgia, South Carolina - we see these areas. In Tennessee we don't have high taxes, so it's cheaper to buy real estate, ”said Lawhorn, who currently lives in Tennessee.
Other places that require salaries under $ 53,000 are Memphis, Tennessee, Little Rock, Ark. Tulsa, Okla. And Augusta, Georgia, although Memphis households typically earn less ($ 43,794), according to the latest census data.
"The pandemic is opening up many opportunities for people as companies are relocating to be more remote working friendly," Lawhorn said. "I can move to a cheaper area while still working where I want to work."
House prices in the US were up 11.1% year over year and sold for an average of $ 350,000 in September, according to Realtor.com. According to First American, a Santa Ana, California-based provider of property insurance, settlement services, and risk solutions to real estate, real estate is 4.8% more achievable as a percentage of income than last year as low mortgage rates have increased purchasing power from estate deals.
“I found it really interesting to see that the required salary in each area changes compared to last year. It looks like affordability must have increased by at least 10-15% in most cities, but what drives a lot of it is falling interest rates, ”Lawhorn said.
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