11 U.S. cities where you need to earn more than $200,000 to buy a home—New York City isn’t one of them

You’ll need to make over $200,000 yearly to afford a home in some California cities, a current National Association of Realtors report reveals.

In the San Jose area, a family would have to earn $482,835 to qualify for a median-priced single-family residence — the best of all 221 U.S. metro markets surveyed — in accordance to NAR’s quarterly report.

The examine decided the qualifying revenue wanted to buy a residence in every metro market based mostly on a 20% down cost and a 7.12% rate of interest. The month-to-month principal and curiosity cost are restricted to 25% of a family’s revenue.

Perhaps unsurprisingly, cities that require the best revenue are giant city coastal hubs where properties have a tendency to be more costly. In California, properties are each fascinating and scarce, which is why the state has some of the highest home prices in the U.S.

Here are the 11 metro areas where households need to earn over $200,000 to afford a median-priced residence.

1. San Jose-Sunnyvale-Santa Clara, California: $482,835
2. Anaheim-Santa Ana-Irvine, California: $340,595
3. San Francisco-Oakland-Hayward, California: $339,290
4. Honolulu, Hawaii: $277,147
5. San Diego-Carlsbad, California: $255,381
6. Salinas, California: $246,716
7. Oxnard-Thousand Oaks-Ventura, California: $240,504
8. Los Angeles-Long Beach-Glendale, California: $234,266
9. San Luis Obispo-Paso Robles, California: $232,257
10. Boulder, Colorado: $223,879
11. Naples-Immokalee-Marco Island, Florida: $200,964

In distinction to the costliest areas, properties are far more reasonably priced in Decatur, Illinois, which ranked final of all 221 U.S. metro areas within the examine. To personal a residence in that metropolis, consumers solely need a family revenue of $33,459.

Similarly, properties in smaller rust belt and rural cities are less expensive in contrast with some cities in California. The qualifying revenue for a residence in Charleston, West Virginia; Erie, Pennsylvania and Youngstown, Ohio is much less than $50,000.

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