USA

What Is The Salary Needed To Buy A Home In The USA

Buying a house is the ultimate dream for almost everyone. And what is the salary needed to buy a home in the USA? Let’s find out.

Over the last 12 months, the cost of buying a home in 49 out of 50 metro areas in the USA has risen. The mortgage rates have also risen significantly – they are currently at a 7-year high. The median cost of buying a home in the USA is about $257,600.

In Pittsburgh, this falls to $141,625 while at the other end of the spectrum, in San Jose, the median cost of buying a home is about $1,250,000. To buy a home at this median price, one would have to earn a salary of atleast $61,453.51.

This takes into account the 20% down payment due, a 4.9% mortgage rate and PITI (the Principal, Interest, Taxes and Insurance) payable.

The Salary Needed To Buy A Home In The USA – Affordable Metro Areas

Pittsburg is the most affordable metro area in the USA to buy a home. It is followed by Cleveland and Buffalo.

However, the median price alone is not enough to calculate the ideal salary you would need to earn to buy a home. There is also local taxes, insurance etc. that needs to be considered.

Thus, though the median price of buying a home in Buffalo is less than that of buying a home in Oklahoma City, you would need to earn more in Buffalo than in Oklahoma City to buy a home for yourself.

Metro Area	Median Home Price In USD	Salary Needed In USD
Pittsburgh	141,625	37,659.86
Cleveland	150,100	40,437.72
Buffalo	154,200	45,698.05
Oklahoma City	161,000	41,335.41
Cincinnati	169,400	43,429.97
Memphis	174,000	41,400.93
St. Louis	174,100	44,215.56
Loisville	180,100	42,323.15
Indianopolis	185,200	42,288.92
Birmingham	202,300	44,593.35

The Salary Needed To Buy A Home In The USA – Most Expensive Metro Areas

San Jose followed by San Fransisco top the list of most expensive metro areas in the USA. In both cities, this is fueled by the Silicon Valley’s economic boom.

According to this list, New York City ranks 6^th across the country but one must note that it takes into account the five boroughs of NYC as well as Jersey City, Newark and other neighboring counties.

Metro Area	Median Home Price In USD	Salary Needed In USD
San Jose	1,250,000	254,835.73
San Fransisco	952,200	198,978.01
San Diego	626,000	131,640.79
Los Angeles	576,100	123,156.01
Seattle	489,600	105,367.89
Boston	460,300	106,789.93
Denver	438,300	91,672.45
Washington D.C.	417,400	94,408.7
New York City	403,900	105,684.33
Portland	389,000	85,173.08