The Salary Needed to Buy a Home in 27 Different U.S. Cities
Connect with us

Markets

The Salary Needed to Buy a Home in 27 Different U.S. Cities

Published

on

The Salary Needed to Buy a Home in 27 Different U.S. Cities

The Salary Needed to Buy a Home in 27 Different U.S. Cities

The popping of the Greenspan-era housing bubble took about six years in total to fully “deflate”.

Most U.S. housing markets peaked sometime in 2006, and it wouldn’t be until just before the third-round of quantitative easing in 2012 that this fall would finally be cushioned. Since then, the combination of QE and record-low interest rates have helped re-inflate the housing market. For better or worse, real estate in many U.S. cities are now approaching or passing their 2006 housing highs, but with a growing disparity between individual metropolitan areas.

Today’s 3D map comes to us from HowMuch.net, and it shows the very different salaries needed to buy a median home in 27 different U.S. metropolitan areas. The salaries range between $31,134 to $147,996, which is a discrepancy of over $100,000.

At the low end of the spectrum, it takes a salary of between $30,000 to $40,000 to buy a home in most metropolitan areas in the Midwest. In St. Louis, for example, the salary needed to buy a home is $34,778. Pittsburgh was the least expensive city analyzed, where a salary of $31,135 could buy the median house in the city.

At the high end is any metropolitan area in California, for which closer to six figures is now needed. San Francisco has the most expensive housing in the country, where residents must make $147,996 a year to be an average homeowner. However, Southern California is not far behind the Bay Area, where salaries of $95,040 and $103,165 are required to buy in Los Angeles and San Diego respectively.

See the full data set, including mortgage rates, monthly payments, and median house prices here.

West Coast Envy

Which cities have rebounded the most since the popping of the housing bubble?

According to The Economist’s interactive chart on U.S. housing price indices, the average U.S. market recovery between 2006 peak and 2012 trough has been about 63.9%.

The Eastern half of the country has struggled to rebound to 2006 housing highs, with New York City, Baltimore, Philadelphia, Chicago, Tampa, Miami, and St. Louis all recovering below the above average mark.

In contrast, prices in the West are soaring: San Francisco, Houston, Dallas, Denver, and Portland have all met or exceeded their 2006 highs. Meanwhile, Los Angeles, Seattle, and San Diego have recovered better than average.

Currency and the Collapse of the Roman Empire
The World's Top 50 Wealthiest Billionaires

Subscribe to Visual Capitalist
Click for Comments

Markets

When Will Air Travel Return to Pre-Pandemic Levels?

COVID-19 hit the air travel industry hard. But passenger traffic is slowly recovering, and by 2025, things are expected to return to ‘normal.’

Published

on

when will air travel return to pre-COVID levels?

When Will Air Travel Return to Pre-Pandemic Levels?

Many industries were hit hard by the global pandemic, but it can be argued that air travel suffered one of the most severe blows.

The aviation industry as a whole suffered an estimated $370 billion loss in global revenue because of COVID-19. And while air travel has been slowly recovering from the trough, flight passenger traffic has yet to fully bounce back.

Where is the industry at in 2022 compared to pre-COVID times, and when is air passenger travel expected to return to regular levels? This graphic by Julie R. Peasley uses data from IATA to show current and projected air passenger ridership.

Air Travel Traffic: 2021 and 2022

After an incredibly difficult 2020, the airline industry started to see significant improvements in travel frequency. But compared to pre-pandemic levels, there’s a lot of ground to cover.

In 2021, overall passenger numbers only reached 47% of 2019 levels. This influx was largely driven by domestic travel, with international passenger numbers only reaching 27% of pre-COVID levels.

Passenger numbers (% of 2019)20212022
International27%69%
Domestic61%93%
Africa46%76%
Asia Pacific40%68%
Caribbean44%72%
Central America72%96%
Europe40%86%
Middle East42%81%
North America56%94%
South America51%88%
Industry-wide47%83%

From a regional perspective, Central America experienced one of the fastest recoveries. In 2021, overall passenger numbers in the region had reached 72% of 2019 levels, and they are projected to reach 96% by the end of 2022.

In fact, the Americas as a whole has seen a quick recovery. Both North America and South America also reached above 50% of 2019 ridership in 2021, and are projected to reach 94% and 88% ridership in 2022, respectively.

On the opposite end of the spectrum, Asia Pacific has experienced the slowest recovery. This is likely due to stricter lockdowns and travel restrictions put into effect in this region (which was harder hit by SARS in 2003), especially in places like Shanghai.

Forecasting Traffic in 2023 and Beyond

While recovery has looked different from region to region, airlines are largely expected to see a full recovery to their ridership levels by 2025.

Forecasted Passengers (% of 2019)202320242025
International82%92%101%
Domestic103%111%118%
Africa85%93%101%
Asia Pacific84%97%109%
Caribbean82%92%101%
Central America102%109%115%
Europe96%105%111%
Middle East90%98%105%
North America102%107%112%
South America97%103%108%
Industry-wide94%103%111%

This recovery is a signifier of a much broader mindset shift, as governments continue to reassess their COVID-19 management strategies.

But while the future seems promising, IATA stressed that the forecast does not take into account the potential impact of the Russia-Ukraine conflict and other geopolitical concerns, which could have far-reaching consequences on the global economy (and travel) in the coming years.

Continue Reading

Markets

All of the World’s Money and Markets in One Visualization (2022)

From the wealth held to billionaires to all debt in the global financial system, we look at the vast universe of money and markets in 2022.

Published

on

All of the World’s Money and Markets in One Visualization

The era of easy money is now officially over.

For 15 years, policymakers have tried to stimulate the global economy through money creation, zero interest-rate policies, and more recently, aggressive COVID fiscal stimulus.

With capital at near-zero costs over this stretch, investors started to place more value on cash flows in the distant future. Assets inflated and balance sheets expanded, and money inevitably chased more speculative assets like NFTs, crypto, or unproven venture-backed startups.

But the free money party has since ended, after persistent inflation prompted the sudden reversal of many of these policies. And as Warren Buffett says, it’s only when the tide goes out do you get to see “who’s been swimming naked.”

Measuring Money and Markets in 2022

Every time we publish this visualization, our common unit of measurement is a two-dimensional box with a value of $100 billion.

Even though you need many of these to convey the assets on the balance sheet of the U.S. Federal Reserve, or the private wealth held by the world’s billionaires, it’s quite amazing to think what actually fits within this tiny building block of measurement:

What fits in a $100 billion box?

Our little unit of measurement is enough to pay for the construction of the Nord Stream 2 pipeline, while also buying every team in the NHL and digging FTX out of its financial hole several times over.

Here’s an overview of all the items we have listed in this year’s visualization:

Asset categoryValueSourceNotes
SBF (Peak Net Worth)$26 billionBloombergNow sits at <$1B
Pro Sports Teams$340 billionForbesMajor pro teams in North America
Cryptocurrency$760 billionCoinMarketCapPeaked at $2.8T in 2021
Ukraine GDP$130 billionWorld BankComparable to GDP of Mississippi
Russia GDP$1.8 trillionWorld BankThe world's 11th largest economy
Annual Military Spending$2.1 trillionSIPRI2021 data
Physical currency$8.0 trillionBIS2020 data
Gold$11.5 trillionWorld Gold CouncilThere are 205,238 tonnes of gold in existence
Billionaires$12.7 trillionForbesSum of fortunes of all 2,668 billionaires
Central Bank Assets$28.0 trillionTrading EconomicsFed, BoJ, Bank of China, and Eurozone only
S&P 500$36.0 trillionSlickchartsNov 20, 2022
China GDP$17.7 trillionWorld Bank
U.S. GDP$23.0 trillionWorld Bank
Narrow Money Supply$49.0 trillionTrading EconomicsIncludes US, China, Euro Area, Japan only
Broad Money Supply $82.7 trillionTrading EconomicsIncludes US, China, Euro Area, Japan only
Global Equities$95.9 trillionWFELatest available 2022 data
Global Debt$300.1 trillionIIFQ2 2022
Global Real Estate$326.5 trillionSavills2020 data
Global Private Wealth$463.6 trillionCredit Suisse2022 report
Derivatives (Market)$12.4 trillionBIS
Derivatives (Notional)$600 trillionBIS

Has the Dust Settled Yet?

Through previous editions of our All the World’s Money and Markets visualization, we’ve created snapshots of the world’s assets and markets at different points in time.

For example, in our 2017 edition of this visualization, Apple’s market capitalization was only $807 billion, and all crypto assets combined for $173 billion. The global debt total was at $215 trillion.

Asset2017 edition2022 editionChange (%)
Apple market cap$807 billion$2.3 trillion+185%
Crypto$173 billion$760 billion+339%
Fed Balance Sheet$4.5 trillion$8.7 trillion+93%
Stock Markets$73 trillion$95.9 trillion+31%
Global Debt$215 trillion$300 trillion+40%

And in just five years, Apple nearly quadrupled in size (it peaked at $3 trillion in January 2022), and crypto also expanded into a multi-trillion dollar market until it was brought back to Earth through the 2022 crash and subsequent FTX implosion.

Meanwhile, global debt continues to accumulate—growing by $85 trillion in the five-year period.

With interest rates expected to continue to rise, companies making cost cuts, and policymakers reining in spending and borrowing, today is another unique snapshot in time.

Now that the easy money era is over, where do things go from here?

Continue Reading

Subscribe

Popular