The minimum income required to buy a home now hovers at $116,000 nationwide, according to a new Realtor.com® report—but this threshold varies greatly based on where you live.
On the high end is San Jose, CA, where homes are listed at a median of $1,467,000 and homebuyers need a salary of $361,000 to comfortably cover these massive mortgage payments.
On the low end, homebuyers in Pittsburgh need to make just $67,000 to snag a property at a more modest median of $250,000.
In April, mortgage rates started rising again, pushing up the cost of buying a home by 6.9% compared with last year.
Overall, the income needed to afford a house rose by $5,900 compared with last year.
“Notably, 34 of the 50 largest metro areas required a household income of more than $100,000 to afford the median-priced home at current interest rates,” says Realtor.com Chief Economist Danielle Hale.
“And six even required a household income of more than $200,000.”
The need for a six-figure salary to purchase a median-priced home in all but 16 metros adds a bitter note to a housing market already stacked against budget-minded buyers, with mortgage prices pushing above 7% as of late.
The typical household income in America was $74,580 in 2022, according to the most recent figures from the U.S. Census Bureau.
(A household consists of all adults who live in the same home, including couples, multigenerational families, and roommates.)
In a nutshell, that means all but three metros are out of reach for the typical household.
To estimate the salary required to buy a home in America’s top 50 metros, the Realtor.com data team crunched the numbers using a few key factors: a maximum spending limit of 30% of income on housing; a down payment of 20%; and a 30-year home loan with a fixed interest rate similar to current levels.
Calculations also factor in local taxes and insurance costs.
Checking out the required income information is a good “reality check” for homebuyers. However, Hale adds, “This doesn’t mean that if you earn more than this income, you can buy whatever you want, and that if you earn less than this income, it will be impossible.”
In other words, these numbers are just a starting point, and homebuyers should always consult a lender or personal finance adviser to get a better understanding of their specific situation.
Read on to get a glimpse of how your salary can handle home prices across the country, and where homebuyers have the easiest (and hardest) times affording a roof over their heads.
The heartland offers hope for buyers
The Midwest is a beacon for would-be homebuyers earning less than six figures.
“Midwestern metros were commonly among the 16 remaining metro areas that required a household income of less than $100,000,” says Hale.
That includes the affordable havens of Detriot and Cleveland, where buyers can snag homes for less than $255,000 while earning $69,000 and $71,000, respectively.
The way-high West
Maybe it’s the weather or the laid-back lifestyle, but something about the West—and California, specifically—demands buyers come to the closing table armed with high six-figure salaries.
For instance, to purchase a median home in San Jose, CA, buyers must be in the top 5% of earners nationally and bring home $361,000 a year.
Runners-up for the metros with high salaries are Los Angeles, and San Diego, two sun-kissed metros.
Buyers in L.A. need to earn $298,000 to land a median home listed at $1,192,000.
In San Diego, an income of $259,000 is needed to buy a median home priced at $1,050,000.
The 10 metros where buyers need the highest incomes to buy a home
Median home list price: $1,467,000
Median household income required to purchase a home: $361,000
Median home list price: $1,192,000
Median household income required to purchase a home: $298,000
Median home list price: $1,050,000
Median household income required to purchase a home: $259,000
Median home list price: $1,027,000
Median household income required to purchase a home: $256,000
Median home list price: $870,000
Median household income required to purchase a home: $226,000
Median home list price: $769,000
Median household income required to purchase a home: $218,000
Median home list price: $775,000
Median household income required to purchase a home: $193,000
Median home list price: $650,000
Median household income required to purchase a home: $162,000
Median home list price: $625,000
Median household income required to purchase a home: $159,000
Median home list price: $567,000
Median household income required to purchase a home: $157,000
The 10 metros with the lowest income requirements to buy a home
Median home list price: $250,000
Median household income required to purchase a home: $67,000
Median home list price: $250,000
Median household income required to purchase a home: $69,000
Median home list price: $255,000
Median household income required to purchase a home: $71,000
Median home list price: $297,000
Median household income required to purchase a home: $75,000
Median home list price: $285,000
Median household income required to purchase a home: $79,000
Median home list price: $294,000
Median household income required to purchase a home: $82,000
Median home list price: $327,000
Median household income required to purchase a home: $87,000
Median home list price: $340,000
Median household income required to purchase a home: $87,000
Median home list price: $295,000
Median household income required to purchase a home: $87,000
Median home list price: $352,000
Median household income required to purchase a home: $91,000
1. Atlanta, GA
Median home list price:$415,000
Median household income required to purchase a home: $108,000
2. Austin, TX
Median home list price: $557,000
Median household income required to purchase a home: $157,000
3. Baltimore, MD
Median home list price: $352,000
Median household income required to purchase a home: $91,000
4. Birmingham, AL
Median home list price: $297,000
Median household income required to purchase a home: $75,000
5. Boston, MA
Median home list price: $870,000
Median household income required to purchase a home: $226,000
6. Buffalo, NY
Median home list price: $285,000
Median household income required to purchase a home: $79,000
7. Charlotte, NC
Median home list price: $422,000
Median household income required to purchase a home: $106,000
8. Chicago, IL
Median home list price: $389,000
Median household income required to purchase a home: $115,000
9. Cincinnati, OH
Median home list price: $375,000
Median household income required to purchase a home: $99,000
10. Cleveland, OH
Median home list price: $255,000
Median household income required to purchase a home: $71,000
11. Columbus, OH
Median home list price: $397,000
Median household income required to purchase a home: $108,000
12. Dallas, TX
Median home list price: $450,000
Median household income required to purchase a home: $139,000
13. Denver, CO
Median home list price: $625,000
Median household income required to purchase a home: $165,000
14. Detroit, MI
Median home list price: $250,000
Median household income required to purchase a home: $69,000
15. Hartford, CT
Median home list price: $406,000
Median household income required to purchase a home: $118,000
16. Houston, TX
Median home list price: $370,000
Median household income required to purchase a home: $118,000
17. Indianapolis, IN
Median home list price: $340,000
Median household income required to purchase a home: $87,000
18. Jacksonville, FL
Median home list price: $420,000
Median household income required to purchase a home: $108,000
19. Kansas City, KN
Median home list price: $422,000
Median household income required to purchase a home: $119,000
20. Las Vegas, NV
Median home list price: $475,000
Median household income required to purchase a home: $114,000
21. Los Angeles, CA
Median home list price: $1,192,000
Median household income required to purchase a home: $298,000
22. Louisville, KY
Median home list price: $327,000
Median household income required to purchase a home: $87,000
23. Memphis, TN
Median home list price: $339,000
Median household income required to purchase a home: $91,000
24. Miami, FL
Median home list price: $540,000
Median household income required to purchase a home: $153,000
25. Milwaukee, WI
Median home list price: $376,000
Median household income required to purchase a home: $102,000
26. Minneapolis, MN
Median home list price: $449,000
Median household income required to purchase a home: $122,000
27. Nashville, TN
Median home list price: $573,000
Median household income required to purchase a home: $142,000
28. New Orleans, LA
Median home list price: $335,000
Median household income required to purchase a home: $90,000
29. New York, NY
Median home list price: $769,000
Median household income required to purchase a home: $218,000
30. Oklahoma City, OK
Median home list price: $330,000
Median household income required to purchase a home: $98,000
31. Orlando, FL
Median home list price: $440,000
Median household income required to purchase a home: $116,000
32. Philadelphia, PA
Median home list price: $370,000
Median household income required to purchase a home: $100,000
33. Phoenix, AZ
Median home list price: $537,000
Median household income required to purchase a home: $132,000
34. Pittsburgh, PA
Median home list price: $250,000
Median household income required to purchase a home: $67,000
35. Portland, OR
Median home list price: $615,000
Median household income required to purchase a home: $156,000
36. Providence, MA
Median home list price: $524,000
Median household income required to purchase a home: $138,000
37. Raleigh, NC
Median home list price: $451,000
Median household income required to purchase a home: $113,000
38. Richmond, VA
Median home list price: $459,000
Median household income required to purchase a home: $114,000
39. Riverside, CA
Median home list price: $600,000
Median household income required to purchase a home: $152,000
40. Rochester, NY
Median home list price: $295,000
Median household income required to purchase a home: $87,000
41. Sacramento, CA
Median home list price: $650,000
Median household income required to purchase a home: $162,000
42. San Antonio, TX
Median home list price: $345,000
Median household income required to purchase a home: $100,000
43. San Diego, CA
Median home list price: $1,050,000
Median household income required to purchase a home: $259,000
44. San Francisco, CA
Median home list price: $1,027,000
Median household income required to purchase a home: $256,000
45. San Jose, CA
Median home list price: $1,467,000
Median household income required to purchase a home: $361,000
46. Seattle, WA
Median home list price: $775,000
Median household income required to purchase a home: $193,000
47. St. Louis, MO
Median home list price: $294,000
Median household income required to purchase a home: $82,000
48. Tampa, FL
Median home list price: $420,000
Median household income required to purchase a home: $109,000
49. Virginia Beach, VA
Median home list price: $390,000
Median household income required to purchase a home: $100,000
50. Washington, DC
Median home list price: $625,000
Median household income required to purchase a home: $159,000