Homeownership costs continue to weigh on all but the wealthiest buyers, with potential homeowners now spending more than $200,000 in eight U.S. cities to buy a typical home. needs to earn, new research reveals.
US mortgage payments increased by an average of 45.6% last year.and Interest rates on 30-year fixed-rate mortgages hover near 7%homebuyers will have to spend more just to meet rising financing costs. According to a new analysis by real estate platform Redfin.
According to Redfin research, a US homebuyer must earn an average of $107,281 to pay the median monthly mortgage payment of $2,682.
However, home ownership costs also vary widely by market. Many cities require much more income to make the monthly mortgage payments for a typical home. Of the 100 largest metropolitan areas in the United States, these eight markets ranked as the most affordable based on income need.
Median house price: $1,497,000
Income needed to buy a mid-priced home: $402,821
Median house price: $1,350,000
Income needed to buy a mid-priced home: $363,265
Median house price: $945,000
Income needed to buy a mid-priced home: $254,286
Median house price: $920,000
Income needed to buy a mid-priced home: $247,559
Median house price: $823,500
Income needed to buy a mid-priced home: $221,592
Median house price: $790,000
Income needed to buy a mid-priced home: $212,577
Median house price: $782,500
Income needed to buy a mid-priced home: $210,559
Median house price: $763,000
Income needed to buy a mid-priced home: $205,312
with chronic housing shortage Also home to some of the wealthiest residents in the United States, California is home to many of the most expensive markets to buy a typical home, seven of which require an income of $200,000 or more.
New York City is not far behind on this list, ranking 11th overall. To buy a median house in the Big Apple, you need $178,942 in income to maintain your payments.
For the purposes of this study, mortgage payability assumes that a given homebuyer spends 30% or less of their income on their home. General rules of thumb for budgeting.
Median home price based on Redfin sales data from October 2021 to October 2022, median mortgage payment assumes buyers have paid a 5% down payment . Mortgage interest rates are based on average interest rates for October 2021 and October 2022, which are 3.1% and 6.9% respectively.
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