Markets
Mapped: The Salary Needed to Buy a Home in 50 U.S. Metro Areas
Check out the latest 2023 update of the salary needed to buy a home in the U.S.
The Salary Needed to Buy a Home in 50 U.S. Metro Areas
Check out the latest 2023 update of the salary needed to buy a home in the U.S.
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.
Maps
Mapped: The 10 U.S. States With the Lowest Real GDP Growth
In this graphic, we show where real GDP lagged the most across America in 2023 as high interest rates weighed on state economies.
The Top 10 U.S. States, by Lowest Real GDP Growth
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
While the U.S. economy defied expectations in 2023, posting 2.5% in real GDP growth, several states lagged behind.
Last year, oil-producing states led the pack in terms of real GDP growth across America, while the lowest growth was seen in states that were more sensitive to the impact of high interest rates, particularly due to slowdowns in the manufacturing and finance sectors.
This graphic shows the 10 states with the least robust real GDP growth in 2023, based on data from the Bureau of Economic Analysis.
Weakest State Economies in 2023
Below, we show the states with the slowest economic activity in inflation-adjusted terms, using chained 2017 dollars:
Rank | State | Real GDP Growth 2023 YoY | Real GDP 2023 |
---|---|---|---|
1 | Delaware | -1.2% | $74B |
2 | Wisconsin | +0.2% | $337B |
3 | New York | +0.7% | $1.8T |
4 | Missississippi | +0.7% | $115B |
5 | Georgia | +0.8% | $661B |
6 | Minnesota | +1.2% | $384B |
7 | New Hampshire | +1.2% | $91B |
8 | Ohio | +1.2% | $698B |
9 | Iowa | +1.3% | $200B |
10 | Illinois | +1.3% | $876B |
U.S. | +2.5% | $22.4T |
Delaware witnessed the slowest growth in the country, with real GDP growth of -1.2% over the year as a sluggish finance and insurance sector dampened the state’s economy.
Like Delaware, the Midwestern state of Wisconsin also experienced declines across the finance and insurance sector, in addition to steep drops in the agriculture and manufacturing industries.
America’s third-biggest economy, New York, grew just 0.7% in 2023, falling far below the U.S. average. High interest rates took a toll on key sectors, with notable slowdowns in the construction and manufacturing sectors. In addition, falling home prices and a weaker job market contributed to slower economic growth.
Meanwhile, Georgia experienced the fifth-lowest real GDP growth rate. In March 2024, Rivian paused plans to build a $5 billion EV factory in Georgia, which was set to be one of the biggest economic development initiatives in the state in history.
These delays are likely to exacerbate setbacks for the state, however, both Kia and Hyundai have made significant investments in the EV industry, which could help boost Georgia’s manufacturing sector looking ahead.
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