Doug Short: Tim Manni, the Managing Editor at HSH.com, features a periodic update entitled “The Salary You Must Earn to Buy a Home in 27 Metros”.
The opening tease is a question:
“How much salary do you need to earn in order to afford the principal and interest payments on a median-priced home in your metro area?”
The article is a must-read for anyone interested in US real estate trends and income demographics. Here is a slightly edited version of the Tim’s table of the key data.
We’ve rounded the dollar amounts to the nearest $100 to facilitate reading.
Note that the data is sorted by the salary needed to finance the median priced home with a standard 28 percent “front-end” debt ratio and a 20 percent down payment:
How do these metropolitan area real estate costs stack up against each other and the US median household income?
Here is a column chart to which we’ve added the latest Sentier Research data for the US median household income as of July 2015.
The table above includes a column for the percent change from the previous quarter (Q1 2015).