In 2022, the annual salary needed to buy a median priced home in the United States was 97,204 U.S. dollars. However, in some of the largest metropolitan areas in the United States where housing prices are up to two or three times higher, homebuyers would have to earn more than 100,000 U.S. dollars to afford a home. In San Jose, which was the most expensive metro in 2022, the annual salary needed for a median home was approximately 373,696 U.S. dollars.
Annual salary needed to buy a median priced home in selected metros in the United States in 2022
(in U.S. dollars)
The source adds the following information: "For our calculations, HSH.com uses the National Association of Realtors’ 2020 fourth-quarter data for median home prices, national mortgage rate data derived from weekly surveys by Freddie Mac and the Mortgage Bankers Association of America for 30-year fixed rate mortgages and available property tax and homeowners insurance costs to determine the annual salary it takes to afford the base cost of owning a home (principal, interest, property tax and homeowner's insurance, or PITI) in the nation's 50 largest metropolitan areas.
We used standard 28 percent "front-end" debt ratios and a 20 percent down payment subtracted from the NAR’s median-home-price data to arrive at our figures. We've incorporated available information on property taxes and homeowner’s insurance costs to more accurately reflect the income needed in a given market."
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HSH Associates. (June 14, 2023). Annual salary needed to buy a median priced home in selected metros in the United States in 2022 (in U.S. dollars) [Graph]. In Statista. Retrieved November 03, 2024, from https://www.statista.com/statistics/1235757/salary-needed-to-buy-median-priced-home-usa-by-metro/
HSH Associates. "Annual salary needed to buy a median priced home in selected metros in the United States in 2022 (in U.S. dollars)." Chart. June 14, 2023. Statista. Accessed November 03, 2024. https://www.statista.com/statistics/1235757/salary-needed-to-buy-median-priced-home-usa-by-metro/
HSH Associates. (2023). Annual salary needed to buy a median priced home in selected metros in the United States in 2022 (in U.S. dollars). Statista. Statista Inc.. Accessed: November 03, 2024. https://www.statista.com/statistics/1235757/salary-needed-to-buy-median-priced-home-usa-by-metro/
HSH Associates. "Annual Salary Needed to Buy a Median Priced Home in Selected Metros in The United States in 2022 (in U.S. Dollars)." Statista, Statista Inc., 14 Jun 2023, https://www.statista.com/statistics/1235757/salary-needed-to-buy-median-priced-home-usa-by-metro/
HSH Associates, Annual salary needed to buy a median priced home in selected metros in the United States in 2022 (in U.S. dollars) Statista, https://www.statista.com/statistics/1235757/salary-needed-to-buy-median-priced-home-usa-by-metro/ (last visited November 03, 2024)
Annual salary needed to buy a median priced home in selected metros in the United States in 2022 (in U.S. dollars) [Graph], HSH Associates, June 14, 2023. [Online]. Available: https://www.statista.com/statistics/1235757/salary-needed-to-buy-median-priced-home-usa-by-metro/
