Of the largest 50 largest metropolitan areas in the United States, only one is less expensive than it was a year ago.
How much do you need to make to buy a home? It depends on the city, according to HSH.com’s recent report on home-buying costs in America’s 50 largest metropolitan areas.
Taking into account current prices, 30-year-fixed mortgage rates and insurance costs (and assuming a 20 percent down payment and industry-standard mortgage-debt-to-earnings ratios), the report arrived at the minimum annual income needed to buy a median-priced home in each area.
Philadelphia was the only major metropolitan area in the country that became more affordable during the past year. (And even that might be more of a glitch in the calculations than a trend, the report noted.) The median home price there was down 5.79 percent, to $196,900, requiring annual earnings of $50,960 to qualify to buy.
San Jose, Calif., the most expensive area, also had the greatest median price increase. The median home there cost $1.373 million, up about 28 percent, and required a salary of $262,116. (New York City, the seventh-priciest area, required a salary of $97,565.)
This week’s chart shows what you would have to make to buy a home in the nation’s five most and least expensive areas.
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