The salary you need to earn to buy a home right now in 23 of the most expensive US housing markets
Courtesy of Jim Salem, First Team Real Estate
In the second quarter of 2017, the US housing supply continued to lag, pushing home prices further upward, according to the National Association of Realtors (NAR).
By the end of June, there were 1.96 million existing homes available for sale — 7% less than were on the market the same time last year.
"The 2.2 million net new jobs created over the past year generated significant interest in purchasing a home in what was an extremely competitive spring buying season," said Lawrence Yun, NAR chief economist. "Listings typically flew off the market in under a month — and even quicker in the affordable price range — in several parts of the country. With new supply not even coming close to keeping pace, price appreciation remained swift in most markets."
The group reports that while the national median family income rose to $71,529, increasing mortgage rates and home prices will affect Americans' ability to buy a home, specifically in the country's most expensive housing markets.
Using NAR's data on housing affordability, we gathered a list of the US metro areas where the minimum salary required to qualify for a mortgage, after a 20% down payment, is highest. NAR assumes a mortgage rate of 3.9% for all areas, with the monthly principle and interest payment limited to 25% of income.
Notably, the salary needed to qualify in the top-five metro areas — four of which are located in California — exceeds $100,000.
For the US as a whole, the average qualifying income is $47,300 and the median home price is $263,300.
Below, check out how much you need to earn to buy a home in the most expensive housing markets, and what the median home will cost you.
The following markets are based on metropolitan statistical areas, with the exception of Anaheim-Santa Ana-Irvine and Los Angeles-Long Beach-Glendale, which are metropolitan divisions.
23. Burlington-South Burlington, Vermont
Courtesy of Jarvis & Titus Realty Group, Keller Williams Green MountainPopulation: 214,363
Median home cost: $288,000
Salary needed to buy: $53,444
22. Salt Lake City, Utah
Courtesy of Beesley and Company, KW Salt Lake City Keller Williams Real EstatePopulation: 1,170,266
Median home cost: $307,900
Salary needed to buy: $56,979
21. Austin-Round Rock, Texas
Courtesy of Grant Whittenberger, Outlaw RealtyPopulation: 2,000,860
Median home cost: $308,000
Salary needed to buy: $56,997
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