Mapped: The Salary Needed to Buy a Home in 50 U.S. Metro Areas
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Mapped: The Salary Needed to Buy a Home in 50 U.S. Metro Areas

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This 3D Map Shows the Salary Needed to Buy a Home in 50 U.S. Metro Areas

The Salary Needed to Buy a Home in 50 U.S. Metro Areas

Over the last year, home prices have risen in 49 of the biggest 50 metro areas in the United States.

At the same time, mortgage rates have hit seven-year highs, making things more expensive for any prospective home buyer.

With this context in mind, today’s map comes from HowMuch.net, and it shows the salary needed to buy a home in the 50 largest U.S. metro areas.

The Least and Most Expensive Metro Areas

As a reference point, the median home in the United States costs about $257,600, according to the National Association of Realtors.

 Median Home PriceMontly Payment (PITI)Salary Needed
National$257,600$1,433.91$61,453.51

With a 20% down payment and a 4.90% mortgage rate, and taking into account what’s needed to pay principal, interest, taxes, and insurance (PITI) on the home, it would mean a prospective buyer would need to have $61,453.51 in salary to afford such a purchase.

However, based on your frame of reference, this national estimate may seem extremely low or quite high. That’s because the salary required to buy in different major cities in the U.S. can fall anywhere between $37,659 to $254,835.

The 10 Cheapest Metro Areas

Here are the cheapest metro areas in the U.S., based on data and calculations from HSH.com:

RankMetro AreaMedian Home PriceMonthly Payment (PITI)Salary Needed
#1Pittsburgh$141,625$878.73$37,659.86
#2Cleveland$150,100$943.55$40,437.72
#3Oklahoma City$161,000$964.49$41,335.41
#4Memphis$174,000$966.02$41,400.93
#5Indianapolis$185,200$986.74$42,288.92
#6Louisville$180,100$987.54$42,323.15
#7Cincinnati$169,400$1,013.37$43,429.97
#8St. Louis$174,100$1,031.70$44,215.56
#9Birmingham$202,300$1,040.51$44,593.35
#10Buffalo$154,200$1,066.29$45,698.05

After the dust settles, Pittsburgh ranks as the cheapest metro area in the U.S. to buy a home. According to these calculations, buying a median home in Pittsburgh – which includes the surrounding metro area – requires an annual income of less than $40,000 to buy.

Just missing the list was Detroit, where a salary of $48,002.89 is needed.

The 10 Most Expensive Metro Areas

Now, here are the priciest markets in the country, also based on data from HSH.com:

RankMetro AreaMedian Home PriceMonthly Payment (PITI)Salary Needed
#1San Jose$1,250,000$5,946.17$254,835.73
#2San Francisco$952,200$4,642.82$198,978.01
#3San Diego$626,000$3,071.62$131,640.79
#4Los Angeles$576,100$2,873.64$123,156.01
#5Boston$460,300$2,491.76$106,789.93
#6New York City$403,900$2,465.97$105,684.33
#7Seattle$489,600$2,458.58$105,367.89
#8Washington, D.C.$417,400$2,202.87$94,408.70
#9Denver$438,300$2,139.02$91,672.45
#10Portland$389,000$1,987.37$85,173.08

Topping the list of the most expensive metro areas are San Jose and San Francisco, which are both cities fueled by the economic boom in Silicon Valley. Meanwhile, two other major metro areas in California, Los Angeles and San Diego, are not far behind.

New York City only ranks in sixth here, though it is worth noting that the NYC metro area extends well beyond the five boroughs. It includes Newark, Jersey City, and many nearby counties as well.

As a final point, it’s worth mentioning that all cities here (with the exception of Denver) are in coastal states.

Notes on Calculations

Data on median home prices comes from the National Association of Realtors and is based on 2018 Q4 information, while national mortgage rate data is derived from weekly surveys by Freddie Mac and the Mortgage Bankers Association of America for 30-year fixed rate mortgages.

Calculations include tax and homeowners insurance costs to determine the annual salary it takes to afford the base cost of owning a home (principal, interest, property tax and homeowner’s insurance, or PITI) in the nation’s 50 largest metropolitan areas.

Standard 28% “front-end” debt ratios and a 20% down payments subtracted from the median-home-price data are used to arrive at these figures.

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Mapped: GDP Growth Forecasts by Country, in 2023

The global economy faces an uncertain future in 2023. This year, GDP growth is projected to be 2.9%—down from 3.2% in 2022.

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GDP Growth

Mapped: GDP Growth Forecasts by Country, in 2023

This was originally posted on Advisor Channel. Sign up to the free mailing list to get beautiful visualizations on financial markets that help advisors and their clients.

Since Russia’s invasion of Ukraine early last year, talk of global recession has dominated the outlook for 2023.

High inflation, spurred by rising energy costs, has tested GDP growth. Tightening monetary policy in the U.S., with interest rates jumping from roughly 0% to over 4% in 2022, has historically preceded a downturn about one to two years later.

For European economies, energy prices are critical. The good news is that prices have fallen recently since March highs, but the continent remains on shaky ground.

The above infographic maps GDP growth forecasts by country for the year ahead, based on projections from the International Monetary Fund (IMF) October 2022 Outlook and January 2023 update.

2023 GDP Growth Outlook

The world economy is projected to see just 2.9% GDP growth in 2023, down from 3.2% projected for 2022.

This is a 0.2% increase since the October 2022 Outlook thanks in part to China’s reopening, higher global demand, and slowing inflation projected across certain countries in the year ahead.

With this in mind, we show GDP growth forecasts for 191 jurisdictions given multiple economic headwinds—and a few emerging bright spots in 2023.

Country / Region2023 Real GDP % Change (Projected)
🇦🇱 Albania2.5%
🇩🇿 Algeria2.6%
🇦🇴 Angola3.4%
🇦🇬 Antigua and Barbuda5.6%
🇦🇷 Argentina*2.0%
🇦🇲 Armenia3.5%
🇦🇼 Aruba2.0%
🇦🇺 Australia*1.6%
🇦🇹 Austria1.0%
🇦🇿 Azerbaijan2.5%
🇧🇭 Bahrain3.0%
🇧🇩 Bangladesh6.0%
🇧🇧 Barbados5.0%
🇧🇾 Belarus0.2%
🇧🇪 Belgium0.4%
🇧🇿 Belize2.0%
🇧🇯 Benin6.2%
🇧🇹 Bhutan4.3%
🇧🇴 Bolivia3.2%
🇧🇦 Bosnia and Herzegovina2.0%
🇧🇼 Botswana4.0%
🇧🇷 Brazil*1.2%
🇧🇳 Brunei Darussalam3.3%
🇧🇬 Bulgaria3.0%
🇧🇫 Burkina Faso4.8%
🇧🇮 Burundi4.1%
🇨🇻 Cabo Verde4.8%
🇨🇲 Cameroon4.6%
🇰🇭 Cambodia6.2%
🇨🇦 Canada*1.5%
🇨🇫 Central African Republic3.0%
🇹🇩 Chad3.4%
🇨🇱 Chile-1.0%
🇨🇳 China*5.3%
🇨🇴 Colombia2.2%
🇰🇲 Comoros3.4%
🇨🇷 Costa Rica2.9%
🇨🇮 Côte d'Ivoire6.5%
🇭🇷 Croatia3.5%
🇨🇾 Cyprus2.5%
🇨🇿 Czech Republic1.5%
🇨🇩 Democratic Republic of the Congo6.7%
🇩🇰 Denmark0.6%
🇩🇯 Djibouti5.0%
🇩🇲 Dominica4.9%
🇩🇴 Dominican Republic4.5%
🇪🇨 Ecuador2.7%
🇪🇬 Egypt*4.0%
🇸🇻 El Salvador1.7%
🇬🇶 Equatorial Guinea-3.1%
🇪🇷 Eritrea2.9%
🇪🇪 Estonia1.8%
🇸🇿 Eswatini1.8%
🇪🇹 Ethiopia5.3%
🇫🇯 Fiji6.9%
🇫🇮 Finland0.5%
🇫🇷 France*0.7%
🇲🇰 North Macedonia3.0%
🇬🇦 Gabon3.7%
Georgia4.0%
Germany*0.1%
Ghana2.8%
Greece1.8%
Grenada3.6%
Guatemala3.2%
Guinea5.1%
Guinea-Bissau4.5%
Guyana25.2%
Haiti0.5%
Honduras3.5%
Hong Kong SAR3.9%
Hungary1.8%
Iceland2.9%
India*6.1%
Indonesia*4.8%
Iraq4.0%
Ireland4.0%
Iran*2.0%
Israel3.0%
Italy*0.6%
Jamaica3.0%
Japan*1.8%
Jordan2.7%
Kazakhstan*4.3%
Kenya5.1%
Kiribati2.4%
South Korea*1.7%
Kosovo3.5%
Kuwait2.6%
Kyrgyz Republic3.2%
Lao P.D.R.3.1%
Latvia1.6%
Lesotho1.6%
Liberia4.2%
Libya17.9%
Lithuania1.1%
Luxembourg1.1%
Macao SAR56.7%
Madagascar5.2%
🇲🇼 Malawi2.5%
🇲🇾 Malaysia*4.4%
🇲🇻 Maldives6.1%
🇲🇱 Mali5.3%
🇲🇹 Malta3.3%
🇲🇭 Marshall Islands3.2%
🇲🇷 Mauritania4.8%
🇲🇺 Mauritius5.4%
🇲🇽 Mexico*1.7%
🇫🇲 Micronesia2.9%
🇲🇩 Moldova2.3%
🇲🇳 Mongolia5.0%
🇲🇪 Montenegro2.5%
🇲🇦 Morocco3.1%
🇲🇿 Mozambique4.9%
🇲🇲 Myanmar3.3%
🇳🇦 Namibia3.2%
🇳🇷 Nauru2.0%
🇳🇵 Nepal5.0%
🇳🇱 Netherlands*0.6%
🇳🇿 New Zealand1.9%
🇳🇮 Nicaragua3.0%
🇳🇪 Niger7.3%
🇳🇬 Nigeria*3.2%
🇳🇴 Norway2.6%
🇴🇲 Oman4.1%
🇵🇰 Pakistan*2.0%
🇵🇼 Palau12.3%
🇵🇦 Panama4.0%
🇵🇬 Papua New Guinea5.1%
🇵🇾 Paraguay4.3%
🇵🇪 Peru2.6%
🇵🇭 Philippines*5.0%
🇵🇱 Poland*0.3%
🇵🇹 Portugal0.7%
🇵🇷 Puerto Rico0.4%
🇶🇦 Qatar2.4%
🇨🇬 Republic of Congo4.6%
🇷🇴 Romania3.1%
🇷🇺 Russia*0.3%
🇷🇼 Rwanda6.7%
🇼🇸 Samoa4.0%
🇸🇲 San Marino0.8%
🇸🇹 São Tomé and Príncipe2.6%
🇸🇦 Saudi Arabia*2.6%
🇸🇳 Senegal8.1%
🇷🇸 Serbia2.7%
🇸🇨 Seychelles5.2%
🇸🇱 Sierra Leone3.3%
🇸🇬 Singapore2.3%
🇸🇰 Slovak Republic1.5%
🇸🇮 Slovenia1.7%
🇸🇧 Solomon Islands2.6%
🇸🇴 Somalia3.1%
🇿🇦 South Africa*1.2%
🇸🇸 South Sudan5.6%
🇪🇸 Spain*1.1%
🇱🇰 Sri Lanka-3.0%
🇰🇳 St. Kitts and Nevis4.8%
🇱🇨 St. Lucia5.8%
🇻🇨 St. Vincent and the Grenadines6.0%
🇸🇩 Sudan2.6%
🇸🇷 Suriname2.3%
🇸🇪 Sweden-0.1%
🇨🇭 Switzerland0.8%
🇹🇼 Taiwan2.8%
🇹🇯 Tajikistan4.0%
🇹🇿 Tanzania5.2%
🇹🇭 Thailand*3.7%
🇧🇸 The Bahamas4.1%
🇬🇲 The Gambia6.0%
🇹🇱 Timor-Leste4.2%
🇹🇬 Togo6.2%
🇹🇴 Tonga2.9%
🇹🇹 Trinidad and Tobago3.5%
🇹🇳 Tunisia1.6%
🇹🇷 Turkey*3.0%
🇹🇲 Turkmenistan2.3%
🇹🇻 Tuvalu3.5%
🇺🇬 Uganda5.9%
🇺🇦 UkraineN/A
🇦🇪 United Arab Emirates4.2%
🇬🇧 United Kingdom*-0.6%
🇺🇲 U.S.*1.4%
🇺🇾 Uruguay3.6%
🇺🇿 Uzbekistan4.7%
🇻🇺 Vanuatu3.1%
🇻🇪 Venezuela6.5%
🇻🇳 Vietnam6.2%
West Bank and Gaza3.5%
🇾🇪 Yemen3.3%
🇿🇲 Zambia4.0%
🇿🇼 Zimbabwe2.8%

*Reflect updated figures from the January 2023 IMF Update.

The U.S. is forecast to see 1.4% GDP growth in 2023, up from 1.0% seen in the last October projection.

Still, signs of economic weakness can be seen in the growing wave of tech layoffs, foreshadowed as a white-collar or ‘Patagonia-vest’ recession. Last year, 88,000 tech jobs were cut and this trend has continued into 2023. Major financial firms have also followed suit. Still, unemployment remains fairly steadfast, at 3.5% as of December 2022. Going forward, concerns remain around inflation and the path of interest rate hikes, though both show signs of slowing.

Across Europe, the average projected GDP growth rate is 0.7% for 2023, a sharp decline from the 2.1% forecast for last year.

Both Germany and Italy are forecast to see slight growth, at 0.1% and 0.6%, respectively. Growth forecasts were revised upwards since the IMF’s October release. However, an ongoing energy crisis exposes the manufacturing sector to vulnerabilities, with potential spillover effects to consumers and businesses, and overall Euro Area growth.

China remains an open question. In 2023, growth is predicted to rise 5.2%, higher than many large economies. While its real estate sector has shown signs of weakness, the recent opening on January 8th, following 1,016 days of zero-Covid policy, could boost demand and economic activity.

A Long Way to Go

The IMF has stated that 2023 will feel like a recession for much of the global economy. But whether it is headed for a recovery or a sharper decline remains unknown.

Today, two factors propping up the global economy are lower-than-expected energy prices and resilient private sector balance sheets. European natural gas prices have sunk to levels seen before the war in Ukraine. During the height of energy shocks, firms showed a notable ability to withstand astronomical energy prices squeezing their finances. They are also sitting on significant cash reserves.

On the other hand, inflation is far from over. To counter this effect, many central banks will have to use measures to rein in prices. This may in turn have a dampening effect on economic growth and financial markets, with unknown consequences.

As economic data continues to be released over the year, there may be a divergence between consumer sentiment and whether things are actually changing in the economy. Where the economy is heading in 2023 will be anyone’s guess.

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