For many of us, owning a home is the ultimate dream. But, can you afford to buy a property in your city? A report released by loan and mortgage site HSH.com looks at the income families would need in 27 cities to become homeowners. Ranging from about $32,000 (Pittsburgh) to almost $162,000 (San Francisco), the salary needed to buy a home varies greatly from one city to the next.
The HSH report looked at the money needed to buy a property at the local median home price, including principal, interest, taxes and insurance. The calculations assume buyers put down 20 percent of the home price and that the monthly mortgage payment does not exceed 28 percent of their income.
In expensive markets like San Francisco, home ownership is unattainable for all but the wealthiest residents. As Huffington Post reports, the median household income is $78,000 in San Francisco, and only 13 percent of residents make en0ugh to buy a median-priced home, which is $885,600.Photo by jeffgunn
With home prices so high in places like San Francisco, more people are opting to rent. But, according to Huffington Post, rents are rising as well, and many people are spending more than they can afford on rent.
However, there are some cities where home ownership is relatively affordable. You don’t need to earn more than $50,000 to buy a home in Cincinnati, Phoenix, Cleveland and Tampa. See the rest of the report here.
[h/t: Huffington Post]