Skip to comments.Here's How Much You Have To Make To Buy A House In 25 Major Cities
Posted on 02/20/2014 8:52:58 AM PST by SeekAndFind
Online mortgage company HSH.com recently estimated the salaries needed to afford a house in 25 metropolitan areas across the United States. Because, the cost of real estate varies across cities and regions you need to be making about four times as much money in San Diego as in Cincinnati to afford a house.
The map illustrates these differences. The wider the circle over a city, the more you need to make to afford a house there:
CLICK ABOVE LINK FOR THE MAP AND TABLE
(Excerpt) Read more at businessinsider.com ...
Noticeably absent: Detroit and Pittsburgh.
Just who in their right minds wants to live in those “cities”? Most are filled with street rats who go about killing, robbing and stealing anyone and everthing they can. It’s not for me.
These people are on drugs.
Really? You make less than $20K a year and you’re supposed to be able to afford a $112K house?
This sounds like Barney Frank economics.
You might be able to buy a house way out in Dublin or Pleasanton and commute your ass off 2 hours each way to work in the city on that salary.
Otherwise, to live in the city on that salary you're paying $2500/month rent of a 2-bedroom apartment or you're living in the Mission or the Tenderloin amongst the Philistines.
The truly curious thing is why anyone would want to buy any asset that will be subject to the coming 10% annual Federal asset confiscation tax that the IMF has set as a requirement for all national governments to employ.
The listed salaries with those prices are a recipe for default, even if you can get a mortgage on it these days.
For example, San Antonio, where I lived for more than ten years, shows a median house price of $171,700, and the salary of $29,305. That’s just nuts.
Another unwritten issue about those most expensive markets in the Northeast: Once you buy that house fasten your seat belt for the annual property tax.
Yes, thanks to Barney the only houses worth living in are $112k. I bought a home in DFW area in year 2000. I tried hard to stay within my single income to purchase a house (although I married the next year). Good thing because now I am at a single income again. The thing is, the mortgage brokers were trying really hard to convince me to buy bigger. I already knew I needed to downsize my life. However, my property taxes due to the economy are so high, my monthly house payment is outrageous! But think if I had listened to those financial ‘experts.’
I moved from Seattle and now my house payment, my land payment, and both my car payments are approximately 1/3 what the mortgage and taxes would have been on my house in Seattle. And there I had a fifth of an acre. Here I have a new home a large 100+ year old barn and 32 gorgeous wooded acres.
Took me a while to find “paying” work out here, though. I didn’t move until I did.
I used to think that 3x to 3-1/2x annual income was normal. Maybe even 4 with the lower mortgages of today vs 30 years ago. But these are over almost 6x.
>> “You might be able to buy a house way out in Dublin or Pleasanton and commute your ass off 2 hours each way to work in the city on that salary.” <<
You got that right!
Nobody is going to be buying anything in SF County for less than 1.5 million.
I recently did a certification survey to get a building remodel permit signed off for a row house on Anza St. The permit fees were based on a valuation of 3 million on that 2000 square foot house in a fairly average San Francisco neighborhood.
I don’t think you can buy a house anywhere in the US if you are making less than $30,000, maybe even $40,000. These numbers look way off.
I was blown away and he said it was no big deal because he bought it for $4,000.
The unhappiest U.S. metro areas to work in, according to Forbes.com:
My daughter and her husband make over $100,000 combined as just wage earners. I know inflation has moved the mean income up a bit but when I was working for civil service that would have been enough to make you wealthy.
They have a nice house, nicer than the one she grew up in but our house was a good one just not as large as theirs now. They live in a rural suburb of a small city so prices are not high.
Under contract on a beautiful house with great features (like marble columned foyer) on almost 2 acres with a nice in ground swimming pool for $78 sqft outside of Charlotte, NC.
Forget the income you have to earn? What kind of House are you getting? Same house in San Francisco would be 500+ sqft. 1000 sqft houses in San Francisco are half a million.
What happens is people in that situation get a lot of benefits because of their near low-income status. They can pay their bills.
The problem is with maintenance. If a plumbing, electrical, any kind of home repair comes up, you've got to have cash reserves or let things slide. But for right now, it's a solution. The house isn't abandoned and the family has a place to live.
That’s because two-fiddy cash money will get you a house in Detroit. If you can collect aluminum cans from the side of the road, you too, can own your own house, but neither the gun nor ammunition to protect it.
The key to the math working on these is buried in the details. To get to these salary levels for financing, you’re expected to put 20% down. At these salary levels, who can afford to save the 20% down and live a somewhat normal life? Well, thank goodness there’s MyRA! LOL!
“The truly curious thing is why anyone would want to buy any asset that will be subject to the coming 10% annual Federal asset confiscation taxthat the IMF has set as a requirement for all national governments to employ.”
Now THAT story I want to see more details on!
Have you got a link?
It will make it even harder for people to buy a house....
Wow! Nobody wants to walk away from even $4,000. But by the time the realty and finance people take their cut, there would’ve been nothing left anyway.
Bought my house in Boston in 2003. Paid 329k. Sold my house in 2013 for 655k. It was on the market for 3 days. Moved to the burbs, bought a 4000 SQF house on 3 acres adjacent to a 600 acre nature preserve. Paid $703k. Massachusetts is expensive, but I’ve been here all my life. Don’t plan on moving again.
They are ignoring property tax and heating/cooling costs. A comparable house in the NY area may cost half as much as a house in the San Francisco area however the property taxes and heating/cooling will be double. The total cost of ownership in both areas is about the same, and therefore so is the net income requirement.
Don't lump Pittsburgh together w/ Detroit, the two have nothing in common.
Why do I need 25 houses?
I don’t even LIKE cities.
Well, they’ve both been run by corrupt politicians and tax eating union thugs for generations. It is just that the Pittsburgh version is way more circumspect in its level of greed and corruption.
That's true to an extent, but there's more to it than that.
People here didn't give up on the place, even when things got bad, and beleive me, things got very bad, we built our way back and now we're better off than we were before.
I've worked in Detroit and Pittsburgh is nothing like that.
2 hrs each way? Bah. Takes me only 45 min on a typical day to drive to SOMA, pay my $15 for parking and walk a block to work.