Having a salary over $100,000 is the standard some clients face in certain areas of the U.S. when it comes to homebuying. NAR’s quarterly
Metropolitan Median Area Prices and Affordability Indexfrom the second quarter of 2017 helped CNBC identify the 10 cities with this high income necessity. The data included in the index assumes a 4 percent mortgage rate for all areas, as well as a monthly principal and interest payment limited to 25 percent of a resident’s income.
The following cities and salaries illustrate what’s needed to buy a home in these 10 areas:
10. Boston
Salary needed for a 5 percent down payment: $102,164
Salary needed for a 10 percent down payment: $96,787
Salary needed for a 20 percent down payment: $86,033
9. Long Island, N.Y.
Salary needed for a 5 percent down payment: $102,559
Salary needed for a 10 percent down payment: $97,162
Salary needed for a 20 percent down payment: $86,366
8. Seattle
Salary needed for a 5 percent down payment: $104,471
Salary needed for a 10 percent down payment: $98,973
Salary needed for a 20 percent down payment: $87,976
7. Los Angeles
Salary needed for a 5 percent down payment: $112,998
Salary needed for a 10 percent down payment: $107,050
Salary needed for a 20 percent down payment: $95,156
6. Boulder, Colo.
Salary needed for a 5 percent down payment: $130,358
Salary needed for a 10 percent down payment: $123,497
Salary needed for a 20 percent down payment: $109,775
5. San Diego
Salary needed for a 5 percent down payment: $132,951
Salary needed for a 10 percent down payment: $125,954
Salary needed for a 20 percent down payment: $111,959
4. Honolulu
Salary needed for a 5 percent down payment: $167,145
Salary needed for a 10 percent down payment: $158,348
Salary needed for a 20 percent down payment: $140,754
3. Irvine, Calif.
Salary needed for a 5 percent down payment: $173,166
Salary needed for a 10 percent down payment: $164,052
Salary needed for a 20 percent down payment: $145,824
2. San Francisco
Salary needed for a 5 percent down payment: $208,767
Salary needed for a 10 percent down payment: $197,779
Salary needed for a 20 percent down payment: $175,804
1. San Jose, Calif.
Salary needed for a 5 percent down payment: $260,057
Salary needed for a 10 percent down payment: $246,370
Salary needed for a 20 percent down payment: $218,996
Source: “10 U.S. cities where you need to earn over $100,000 to afford to buy a house” CNBC (Oct. 4, 2017)
