In the News – The Income Needed To Afford A Typical Home In 20 Major Cities
Potential buyers who don’t earn that much can still find a decent home in Pittsburgh or San Antonio. People who make less than $20,000 a year can afford a median-priced home in those cities.
CNBC found how much income is needed to a house in 20 U.S. cities. While Pittsburgh, San Antonio, New Orleans, and Charlotte are on the cheaper end, people essentially need to be well-paid professionals to live in Seattle, New York City, Los Angeles, and San Francisco, where median home prices are more than $500,000 (or, in San Francisco, more than $1.2 million).
The report assumes a 10 or 20 percent down payment with associated monthly costs at a four percent mortgage rate on a 30-year fixed-rate mortgage, with a maximum allowable debt-to-income ratio of 45 percent.
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