Content producer Yuqing Pan reports that for the 50 largest U.S. markets, Realtor.com calculated the minimum number of years homeowners can expect to spend paying off their mortgage.
The calculations are a formula made up of median home prices and median household incomes, normalized debt-to-income ratios, etc., assuming a 20% down payment and a normal 30-year mortgage as the starting benchmark. Pan writes:
The country’s West Coast has some of the most stressed home buyers. In Los Angeles, the nonstop inflow of foreign money has driven its median home price to over $600,000. For those average home buyers who can’t pay off a Beverly Hill estate in cash, their annual income of around $100,000 dictates a 29.4-year mortgage amortization period.