The salary you need to earn to buy a home right now in the 25 biggest US cities


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Home prices across the United States have continued to rise, though at a steadier pace, with 92% of metros showing sales-price gains, according to the latest quarterly report from the National Association of Realtors.
Despite a strong economy, homebuying affordability has decreased year-over-year due to a rise in mortgage rates and home prices.
Homebuyers in the San Francisco metro area must earn just under $200,000 a year to qualify for a mortgage with 20% down.

Middle-class homebuyers are still struggling.

Home prices across the US rose in the fourth quarter of 2018, but at a steadier pace, according to the latest quarterly report from the National Association of Realtors (NAR).

“Housing affordability will be the key to sustained healthy growth in the housing market in the upcoming years. That requires more homebuilding of moderately priced homes,” said NAR’s chief economist Lawrence Yun in a press release.

California is a particularly difficult market, though the income needed to qualify for a mortgage in San Francisco and Los Angeles metro areas decreased slightly in the fourth quarter of 2018.

Each quarter, NAR calculates qualifying income requirements for all US metropolitan-statistical areas assuming the buyer puts 25% of gross income toward the mortgage principal and interest. The calculations are done for 5%, 10%, and 20% down payments at a 3.9% interest rate. Metro areas are based on the US Census definitions.

Below, we’ve pulled the qualifying annual income amounts for the 25 largest metros by population, ranked from lowest to highest qualifying income. Detroit and Pittsburgh are not included because of insufficient data.

SEE ALSO: We did the math to calculate how much money you need to save monthly to buy a home by 35

DON’T MISS: This $45 million San Francisco home could shatter the city’s real-estate record — take a look inside the gorgeous complex

25. St. Louis, Missouri

Income needed for 20% down: $35,829

Income needed for 10% down: $40,308

24. Atlanta, Georgia

Income needed for 20% down: $44,473

Income needed for 10% down: $50,032

23. San Antonio, Texas

Income needed for 20% down: $47,148

Income needed for 10% down: $53,042

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Source:: Businessinsider – Finance

      

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