As home prices rise, more buyers are finding they need to earn more to break into some housing markets. SmartAsset, a personal finance resource, recently analyzed the salary residents need to buy a median-priced home in 15 of the nation’s largest cities.
In some cities, buyers may need to bring more than just savings from a paycheck. For example, in three big cities—San Francisco, San Jose, Calif., and New York—buyers need to make more than $110,000 to afford a home (including the mortgage, property taxes, and homeowners insurance), which is nearly double the nation’s median household income of $57,617.
However, owning a home is much more affordable in other cities. Researchers found that in 10 of the 15 cities analyzed, the median household income was sufficient enough to afford the median-priced home. For example, in Indianapolis, after making a 20 percent down payment on a median-priced home, residents only need an annual income of $21,955 to afford their monthly home payments.