For most of us whom make a list of goals we want to accomplish when we get out of school probably umber one is finding a good job, then somewhere just below that is finding a nice place to live and buying a home. Unfortunately for those of us in the market it’s going to take being very successful at number one before number two is even possible as the cost to purchase a home, especially coming up with the down payment has become more difficult than any time in history. We looked at some of the areas around the country to see what the range of cost was in various markets to get into a home so you know what to shoot for when you’re negotiating that salary.
According to the 2018 Home Affordability Report “Over the past decade, home prices in almost all major U.S. cities have increased,” which means there are not safe places to hide any more. It’s not just the ones you know about like New York, LA, San Francisco, and the coastal areas but some cities you wouldn’t think of. So we listed the full range to give you an idea what to expect when you’re making your choice on where to settle down. The report went on to read that “Cities like San Francisco and Seattle have seen home price appreciation far outpace any historical precedent, growing as much as 10 percent year-over-year,”. To put it in perspective on what it would take to become a homeowner in various locations across the country, Unison calculated the salary needed to afford to buy.
To determine the necessary salary, the report looked at median property values in each area, then calculated approximate monthly costs for different sized down payments. For the purpose of the study, we assumed a 4.62% percent mortgage interest rate on a 30-year fixed-rate mortgage, property taxes of 1.25% and and average home owners insurance cost of 0.4% on the value of the home. Lastly, the necessary salaries in the study assumed the home buyer spent the recommended 30% of total income on their home.
New York, New York
Salary required for a 10 percent down payment: $418,482
Salary required for a 20 percent down payment: $350,000
Median home price: $1.6 million
San Francisco, California
Salary required for a 10 percent down payment: $349,650
Salary required for a 20 percent down payment: $292,000
Median home price: $1.3 million
Los Angeles, California
Salary required for a 10 percent down payment: $187,306
Salary required for a 20 percent down payment: $156,000
Median home price: $714,935
Seattle, Washington
Salary required for a 10 percent down payment: $171,575
Salary required for a 20 percent down payment: $143,000
Median home price: $654,889
Portland, Oregon
Salary required for a 10 percent down payment: $107,692
Salary required for a 20 percent down payment: $90,000
Median home price: $496,328
Denver, Colorado
Salary required for a 10 percent down payment: $95,360
Salary required for a 20 percent down payment: $79,000
Median home price: $363,984
Atlanta, Georgia
Salary required for a 10 percent down payment: $61,847
Salary required for a 20 percent down payment: $51,000
Median home price: $236,065
Phoenix, Arizona
Salary required for a 10 percent down payment: $53,388
Salary required for a 20 percent down payment: $44,000
Median home price: $203,777
Dallas, Texas
Salary required for a 10 percent down payment: $48,887
Salary required for a 20 percent down payment: $40,000
Median home price: $186,597
Philadelphia, Pennsylvania
Salary required for a 10 percent down payment: $37,429
Salary required for a 20 percent down payment: $31,000
Median home price: $142,864
Kansas City, Missouri
Salary required for a 10 percent down payment: $29,036
Salary required for a 20 percent down payment: $24,000
Median home price: $110,827