HSH.com contributor Tim Manni taps National Association of Realtors data to identify the salary needed in order to afford the principal, interest, taxes and insurance payments on a median-priced home in 27 metro areas.
As a methodological basis, HSH.com took the National Association of Realtors’ 2015 third-quarter data for median-home prices and HSH.com’s 2015 third-quarter average interest rate for 30-year, fixed-rate mortgages. The takeaways include:
- For the first time in this series, in the commentary section of each slide, we discuss how the salary numbers change when a borrower puts 10 percent down compared with 20 percent. Here’s a hint: things become a lot more expensive. See the commentary portion of each slide to learn more.
- The largest salary increase occurred in the Los Angeles metro area where home prices were up nearly 14 percent in the third quarter.
- At 20 percent down, the required salary to purchase a median-priced home in the Pittsburgh metro is $33,729. In the San Francisco metro, the required salary is $153,152. If you put 10 percent down, the required salary in the Pittsburgh and San Francisco metros increases to $38,663 and $185,023, respectively.
- Mortgage rates sported a mild increase in every metro area on our list.