Real Estate
Mapped: 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 Price | Montly 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:
Rank | Metro Area | Median Home Price | Monthly Payment (PITI) | Salary Needed |
---|---|---|---|---|
#1 | Pittsburgh | $141,625 | $878.73 | $37,659.86 |
#2 | Cleveland | $150,100 | $943.55 | $40,437.72 |
#3 | Oklahoma City | $161,000 | $964.49 | $41,335.41 |
#4 | Memphis | $174,000 | $966.02 | $41,400.93 |
#5 | Indianapolis | $185,200 | $986.74 | $42,288.92 |
#6 | Louisville | $180,100 | $987.54 | $42,323.15 |
#7 | Cincinnati | $169,400 | $1,013.37 | $43,429.97 |
#8 | St. Louis | $174,100 | $1,031.70 | $44,215.56 |
#9 | Birmingham | $202,300 | $1,040.51 | $44,593.35 |
#10 | Buffalo | $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:
Rank | Metro Area | Median Home Price | Monthly Payment (PITI) | Salary Needed |
---|---|---|---|---|
#1 | San Jose | $1,250,000 | $5,946.17 | $254,835.73 |
#2 | San Francisco | $952,200 | $4,642.82 | $198,978.01 |
#3 | San Diego | $626,000 | $3,071.62 | $131,640.79 |
#4 | Los Angeles | $576,100 | $2,873.64 | $123,156.01 |
#5 | Boston | $460,300 | $2,491.76 | $106,789.93 |
#6 | New York City | $403,900 | $2,465.97 | $105,684.33 |
#7 | Seattle | $489,600 | $2,458.58 | $105,367.89 |
#8 | Washington, D.C. | $417,400 | $2,202.87 | $94,408.70 |
#9 | Denver | $438,300 | $2,139.02 | $91,672.45 |
#10 | Portland | $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.
Real Estate
Modular Housing vs. Traditional Housing: How Do They Compare?
Modular housing can be completed 40% faster and costs 10-25% less than traditional construction methods. Is the future of housing modular?


Modular Housing vs. Traditional Housing: How Do They Compare?
The U.S. needs new houses. Lots of them.
With housing prices nearing six times annual incomes, increasing supply is a must if there is any hope of bringing down house prices, and modular housing could be the solution.
This visualization is the third and final piece of the Reimagining Home Series from our sponsor Boxabl, where we compare the benefits of modular housing against traditional construction methods. Let’s start with the basics.
What Is Modular Housing?
Modular homes are built offsite, in standardized sections, usually in a factory setting. They are then transported to the building site and assembled on a waiting foundation. Once complete, modular homes look just like any other house.
Modular housing is not the same as manufactured homes, which are also sometimes called mobile homes. Like modular housing, manufactured homes are built offsite in a factory, but the key difference is that they can be moved after being assembled. Modular homes aren’t meant to be moved again after final assembly.
6 Ways Modular Homes Differ to Traditional Homes
The following benefits are based on information from the Modular Home Building Association, as well as a paper given at the 2020 Creative Construction e-Conference by members of the Department of Civil Engineering at the University of Texas at Arlington.
1. Speed of Construction
Because of the piecemeal nature of modular construction, many building activities can be done simultaneously, greatly reducing the overall time of completion. At the same time, because construction happens indoors, weather delays aren’t an issue. Overall, a modular housing project can be completed in 40% less time than using traditional building construction methods.
2. Cost Effectiveness
Standardization of design, less transportation of materials onsite, and the reduced impact of weather are some of the reasons that modular housing can be much cheaper than traditional building methods. According to the authors of the paper, there was a 10-25% decrease in construction costs for modular housing, again, compared to traditional methods.
3. Customizable
A common misconception is that modular housing isn’t customizable. While many manufacturers will often begin with a starter floor plan, they may also offer various customization options throughout the home.
4. Safety Record
Construction is a dangerous way to make a living. In 2021, construction and extraction workers held the number two spot for fatal occupational injuries in the U.S., with 951 work fatalities.
When you drill down into that number, construction tradespeople are in the majority, by far, with 726 that year alone.Description | Fatalities |
---|---|
Transportation and material moving occupations | 1,523 |
Construction and extraction occupations | 951 |
Installation, maintenance, and repair occupations | 475 |
Building and grounds cleaning and maintenance occupations | 356 |
Management occupations | 323 |
Protective service occupations | 302 |
Production occupations | 242 |
Farming, fishing, and forestry occupations | 218 |
Sales and related occupations | 200 |
Food preparation and serving related occupations | 101 |
Office and administrative support occupations | 91 |
Unknown occupation | 71 |
Personal care and service occupations | 64 |
Healthcare practitioners and technical occupations | 57 |
Arts, design, entertainment, sports, and media occupations | 45 |
Community and social services occupations | 40 |
Healthcare support occupations | 32 |
Architecture and engineering occupations | 29 |
Business and financial operations occupations | 27 |
Educational instruction and library occupations | 16 |
Legal occupations | 11 |
Life, physical, and social science occupations | 10 |
Computer and mathematical occupations | 6 |
Military occupations | 0 |
Total | 5,190 |
Because modular construction happens in a controlled, factory environment, the number of accidents decreases by 80% compared to traditional building methods.
5. Environmental Impact
Anyone who has walked past a residential build site can testify to the amount of waste produced during construction. Modular construction is more efficient and therefore produces less waste. And because onsite construction is limited to assembly, there is less dust and noise. Carbon emissions are also 38% lower.
6. Built to Last
Modular housing is as good, if not better constructed, than many traditionally-built houses. The factory environment allows for superior quality control, and homes built this way use 15-20% more wood per square foot, which makes them stronger. Moreover, in a study commissioned by the Federal Emergency Management Agency after 1992’s Hurricane Andrew found that modular housing “performed much better than conventional residential framing.”
A Market On The Rise
Not only is modular housing cheaper and greener than traditional construction methods, it is also a market on the rise.
According to a recent report, the global modular construction market is expected to reach $54 billion by 2027, with a CAGR of 2.9% between 2021 to 2027.
Thinking Outside of the Box on Housing
Modular housing could be a solution to the housing affordability crisis not only in the U.S., but around the world. And with the global city population expected to hit 68% by 2050, it’s time to think outside the box on housing.
Boxabl uses advanced, mass production techniques to build and ship homes that significantly lower the cost of home ownership for everyone.
This is the final piece in the Reimagining Home Series from our sponsor, Boxabl. Be sure to read parts one and two on urbanization and affordable housing.

Learn more about how Boxabl is helping tackle the housing affordability crisis.

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