Salaries Needed to Afford Home Payments in 15 Largest US Cities

Key Highlights

• Median home value across the 15 largest US cities is $418,500, according to SmartAsset
• To afford monthly payments on this median valued house, an average salary required would be $68,440/year assuming no additional non-mortgage debt
• Those with additional debt would need to earn $17,000-$34,000 more than $68,440/year, according to Smart Asset

SmartAsset, a personal finance tech company that uses financial modeling to provide advice on major financial decisions, just released its research on how much annual salary would be needed in order to afford monthly home payments in the 15 largest cities in the US. (Cities mentioned here are not the most expensive US cities, merely the largest.)

New Free Webinar Shows You The 12 Secrets Of Real Millionaire Agents. Stop Struggling. You Can FINALLY Laugh At Your Money Worries – If You Follow This Simple Plan. Learn How To Generate 100’s of Motivated Leads Without Coming Off As A Pushy Salesperson and Losing Your Soul. Learn Now How To Become One of the 1000s of Agents Making HUGE Money Who Never Thought They Could.

YES, I Want To Attend The FREE Webinar! <——Click To Register

P.S. Free Webinar, Limited Space. Less Than 300 Spots Still Available.

For this research study, SmartAsset assumed financing for a 30-year fixed mortgage with a 4% interest rate, a 20% down payment and home insurance at the rate of 0.35%. Also, SmartAsset assumed NO additional non-mortgage debt. If the homeowner did have additional non-mortgage debt, an additional $17,000-$34,000 would be needed on top of that $68,440 average annual salary.

Here are SmartAsset’s findings:

City                     Median Home   Monthly Home           Salary

Value        Payment                 Needed

1. San Francisco       $1,195,700      $5,533                  $184,442
2. San Jose              $968,500         $4,579                  $152,625
3. Los Angeles          $682,400         $3,186                  $106,210
4. New York              $645,100        $3,082                   $102,736
5. San Diego             $654,700        $3,057                   $101,898
6. Austin                   $365,500        $2,023                   $67,446
7. Chicago                 $271,600       $1,467                    $48,914
8. Dallas                    $209,700       $1,150                    $38,347
9. Phoenix                  $249,100       $1,147                    $38,219
10. Ft. Worth                $189,300       $1,086                    $36,194
11. Houston                  $179,100       $997                      $33,249
12. San Antonio            $155,600       $896                       $29,882
13. Jacksonville            $183,700        $888                      $29,612
14. Columbus               $159,400        $881                      $29,371
15. Philadelphia            $167,700        $824                      $27,454

Thanks to SmartAsset and HousingWire’s Julia Falcon

Also read: Podcast: What You Must Know Now: Coronavirus, Recession, Market Crash, Investment Hotspots in 2019 & Beyond, For-Sale Housing Shortage Now Driving Up Rent Prices