Moving? Here’s how much you need to earn to afford a house

News

For those who can afford it, the coronavirus crisis has caused a home-buying frenzy.

In the last year, 1 in 20 adults moved, either permanently or temporarily, from where they were living due to the Covid outbreak, according to a recent report by the Pew Research Center.

Not everyone is heading from the city to the suburbs, however. In the New York metro area, for example, 3 of the 5 most popular places to relocate to from Manhattan were less than 15 miles away, according to a separate analysis of data from the U.S. Postal Service by Bankrate.com.

More from Invest in You:
Americans are more in debt than ever
How much you need to invest each month to save $2 million by 40
How much money do you need to retire? Start with $1.7 million

Almost regardless of location, prices are rising in face of skyrocketing demand.

That, in turn, has fueled an affordability problem for many would-be buyers, despite mortgage rates near the lowest levels ever.

Here’s a look at how much you need to earn now to afford a home in the country’s most popular cities, according to a new analysis by Zippia.com.

For most people on the move, hot spots like San Francisco and New York remain well out of reach. On the flipside, Detroit and Akron or Toledo, Ohio are relatively affordable.

The career-planning site determined monthly mortgage payments by taking the average home cost with a 30-year mortgage and a 3.9% interest rate (not including taxes, insurance and other costs). Zippia also applied the standard rule that your monthly mortgage payments should be less than 30% of your monthly income.

In the end, of the 175 cities in the report, there are only 51 where the amount needed for home ownership is below the median income in that location. (Here’s a look at Zippia’s full list.)

SIGN UP: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox.

CHECK OUT: How to make money with creative side hustles, from people who earn thousands on sites like Etsy and Twitch via Grow with Acorns+CNBC.

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

Products You May Like

Articles You May Like

Weekly mortgage demand inched up, despite higher interest rates. Here’s why
‘RHOC’ star Kelly Dodd and Rick Leventhal sell the Westhampton beach house where they met — for $1.16M
Cara Delevingne sells torched $7M Los Angeles mansion at a serious loss—6 months after it was destroyed by fire
Real estate titans toast Daniel Boulud’s steakhouse La Tete d’Or: ‘Cathedral to carnivorism’
This thoroughly modern Georgia mansion was one hated by locals — now it’s listed for $40M

Leave a Reply

Your email address will not be published. Required fields are marked *