3: The salary you must earn to buy a home in 25 citiesby Tim Manni
“The salary you must earn to buy a home in 25 cities,” number three on our list of the top-10 pieces of content for 2013, was one of our more recent, and as you can see, most popular pieces of 2013. This is the first slideshow on our list.
How much salary do you need to earn in order to purchase a median-priced home in your city?
To find out, HSH.com took the National Association of Realtors’ third quarter data for median home prices and our own third-quarter average interest rate for 30-year, fixed-rate mortgages to determine how much money homebuyers in 25 cities would need to earn in order to afford the principal and interest payment on the median-priced home in their market. There is no doubt that your income will need to be much higher to cover taxes, insurances and other expenses to live in the home, plus any other debts you might have.
Affordability has declined significantly since the beginning of 2013 because both home prices and mortgage rates have trended upward. “Affordability has fallen to a five-year low as home-price increases easily outpaced income growth,” Lawrence Yun, chief economist for the NAR, said in a release. Yun said that the recent declines in both pending and existing-home sales are the result of decreased affordability.
Here’s a current look at how much salary you would need to earn in order to afford the median-priced home in your city.
Be sure to check out our slideshow “The salary you must earn to buy a home in 25 cities.”