It’s no mystery that cost of living varies drastically depending on where you live, so a new study by GOBankingRates set out to find out what minimum salary you would need to make in order to buy a median-priced home in each of the 50 states, and Washington, D.C.
New York, as one might guess, came in near the top, requiring a $64,000 annual income to purchase a median-priced home. But compared to Hawaii ($111K) and, curiously, Colorado ($74K) the affordability of home ownership in New York is tied with that of Oregon. States in the Midwest came out as most affordable, requiring the smallest salaries in order to buy a median-priced home. States with large metropolitan areas saw a bump in the average salary needed to buy.
Below is a map with the full results of the study:
GoBankingRates gave this advice to anyone considering a home purchase,
“Before you buy a home, it’s important to find out if you can afford the monthly mortgage payment. To do this, some financial experts recommend your housing costs — primarily your mortgage payments — shouldn’t consume more than 30 percent of your monthly income.”
As we recently reported, research shows that historically, Americans had spent 21% of their income on owning a median-priced home. The latest data from the fourth quarter of 2017 shows that the percentage of income needed today is only 15.7%!
Global Property Systems says:
If you are considering buying a home, whether it’s your first time or your fifth time, consult with a Global Property Systems REALTOR® who can help evaluate your ability to do so in today’s market!