2020 Update: Median Home Price and Salary Required in 25 Major Cities
This article was originally written by Jill Mislinski. Starting in January 2023, AP Charts pages will be maintained by Jennifer Nash at Advisor Perspectives/VettaFi.
The team at HSH.com features a periodic update entitled "The Salary You Must Earn to Buy a Home in the 50 Largest Metros". The key question is:
"How much salary do you need to earn in order to afford the principal and interest payments on a median-priced home in your metro area?"
The article is a must-read for anyone interested in US real estate trends and income demographics. Here is a slightly edited version of Keith's table of the key data. We've rounded the dollar amounts to the nearest $100 to facilitate reading. Note that the data is sorted by the salary needed to finance the median single-family priced home with a standard 28 percent "front-end" debt ratio and a 20 percent down payment. The locations are for the entire metro areas defined by the Office of Management and Budget.
How do these metropolitan area real estate costs stack up against each other and the US median household income? Here is a column chart to which we've added the latest data for the US median household income as of 2020.