Salary Needed to Afford Home Payments in the 15 Largest Cities

Salary Needed to Afford Home Payments in the 15 Largest Cities

If you are currently saving to buy a home you may be wondering how much you need to get started. Realistically it depends on where you live at. The location is everything. A study was recently done to see what the average salary a person needed in the California is right around $100,000. If you want something a little cheaper, but still in California, San Diego is a great choice. The average salary to own a home here is right around $75,000.
 

Salary Needed to Afford Home Payments in the 15 Largest Cities

You finally have enough savings for a down payment and you’re ready to buy a house. How much will monthly house payments cost? Like with any big financial commitment, it’s important to know how much you’ll need to budget per month. It can be hard to calculate exact payments as property taxes and homeowners insurance are also factors. We crunched the numbers to find how much median home payments cost in the 15 largest U.S. cities and the salary needed to pay them.

We then added up the total monthly payments on the mortgage, real estate taxes and homeowners insurance. Our calculator then recommends a minimum income needed to make these payments. We ranked each city from to highest minimum income to lowest minimum income. Median home values and median household incomes are from the U.S. Census Bureau’s 2015 5-Year American Community Survey.

Just down the road from San Francisco is San Jose, where residents need to earn just under six figures to afford payments on the average home. The median home in San Jose is valued at $609,500, meaning after a 20% down payment the mortgage balance is $487,600. That will cost homeowners about $3,000 per month. To afford that, our calculator recommends an annual salary of $99,963.

The median home value in New York is just shy of $500,000. After paying a 20% down payment, homeowners will have to make monthly home payments of $2,910 to live there. Our calculator recommends you make at least $96,993 if you are planning on buying the median-value house. Despite New York and San Jose having similar monthly payments, home values are 20% higher in San Jose. So why can homeowners expect to pay about the same amount per month? The answer is high New York real estate taxes. New Yorkers pay double what San Jose residents do in real estate taxes.

Of all the California cities on our list, San Diego is the most affordable for home buyers. Home payments in San Diego will run up a monthly bill of $2,274 on average. To cover this, our mortgage calculator recommends earnings of about $75,816 per year.

If you are currently saving to buy a home you may be wondering how much you need to get started. Realistically it depends on where you live at. The location is everything. A study was recently done to see what the average salary a person needed in the California is right around $100,000. If you want something a little cheaper, but still in California, San Diego is a great choice. The average salary to own a home here is right around $75,000.

You finally have enough savings for a down payment and you’re ready to buy a house. How much will monthly house payments cost? Like with any big financial commitment, it’s important to know how much you’ll need to budget per month. It can be hard to calculate exact payments as property taxes and homeowners insurance are also factors. We crunched the numbers to find how much median home payments cost in the 15 largest U.S. cities and the salary needed to pay them.

We then added up the total monthly payments on the mortgage, real estate taxes and homeowners insurance. Our calculator then recommends a minimum income needed to make these payments. We ranked each city from to highest minimum income to lowest minimum income. Median home values and median household incomes are from the U.S. Census Bureau’s 2015 5-Year American Community Survey.

Just down the road from San Francisco is San Jose, where residents need to earn just under six figures to afford payments on the average home. The median home in San Jose is valued at $609,500, meaning after a 20% down payment the mortgage balance is $487,600. That will cost homeowners about $3,000 per month. To afford that, our calculator recommends an annual salary of $99,963.

The median home value in New York is just shy of $500,000. After paying a 20% down payment, homeowners will have to make monthly home payments of $2,910 to live there. Our calculator recommends you make at least $96,993 if you are planning on buying the median-value house. Despite New York and San Jose having similar monthly payments, home values are 20% higher in San Jose. So why can homeowners expect to pay about the same amount per month? The answer is high New York real estate taxes. New Yorkers pay double what San Jose residents do in real estate taxes.

Of all the California cities on our list, San Diego is the most affordable for home buyers. Home payments in San Diego will run up a monthly bill of $2,274 on average. To cover this, our mortgage calculator recommends earnings of about $75,816 per year. Read more…

 

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