The topic of affordability is on everyone’s radar these days including Harris Real Estate. Here is this week’s second piece on the topic.
Unison, a home investment company, just released its latest 2018 Home Affordability Report. The Report indicates how much a homeowner would need to spend per year in order to buy a home and live it in a specific city in the US.
For the purposes of this report, Unison included the following elements in its calculations to determine the salary needed to buy a home in specific major cities. The elements included were
- median property values in each specific city
- approximate monthly costs for different sized down payments
- an assumed 4.625% mortgage rate on a 30-year fixed loan
- an assumed property tax estimate of 1.25%/year
- an assumed home insurance cost of 0.4% home valuation.
Unison’s results DID NOT ASSUME that homeowners were spending the recommended 30% of their income on housing costs.
New York City
Assuming a 10% down payment – $418,482/year
Assuming a 20% down payment – $350,000/year
Median home price – $1.6M
San Francisco
Assuming a 10% down payment – $349,650/year
Assuming a 20% down payment – $292,000/year
Median home price – $1.3M
Los Angeles
Assuming a 10% down payment – $187,306/year
Assuming a 20% down payment – $156,000/year
Median home price – $714,935/year
Seattle
Assuming a 10% down payment – $171,575/year
Assuming a 20% down payment – $143,000/year
Median home price – $654,899
Portland
Assuming a 10% down payment – $107,692/year
Assuming a 20% down payment – $90,000/year
Median home price – $496,328
Denver
Assuming a 10% down payment – $95,360/year
Assuming a 20% down payment – $79,000/year
Median home price – $363,984
Atlanta
Assuming a 10% down payment – $61,847/year
Assuming a 20% down payment – $51,000
Median home price – $236,065
Phoenix
Assuming a 10% down payment – $53,388/year
Assuming a 20% down payment – $44,000/year
Median home price – $203,777
Dallas
Assuming a 10% down payment – $48,887/year
Assuming a 20% down payment – $40,000/year
Median home price – $186,597
Philadelphia
Assuming a 10% down payment – $37,429/year
Assuming a 20% down payment – $31,000/year
Median home price – $142,864
Kansas City
Assuming a 10% down payment – $29,036/year
Assuming a 20% down payment – $24,000/year
Median home price – $110,827
