It’s no mystery that cost of living is drastically different depending on where you live. So is the minimum salary you need to buy a home.
So, a new study by GOBankingRates set out to find out what minimum salary you would need to make to buy a median-priced home in each of the 50 states, and Washington, D.C.
The study found that states in the Midwest came out on top as most affordable. They require the smallest salary in order to buy a median-priced home. States with large metropolitan areas saw a bump in the average salary needed to buy a median-priced home. California, Washington, D.C., and Hawaii edging out all others with the highest salaries required.
Below is a map with the full results of the study:
GoBankingRates gave this advice to anyone considering a home purchase.
“Before you buy a home, it’s important to find out if you can afford the monthly mortgage payment. To do this, some financial experts recommend your housing costs — primarily your mortgage payments — shouldn’t consume more than 30 percent of your monthly income.”
As we recently reported, research from Zillow shows that historically, Americans had spent 21% of their salary on owning a median-priced home. The latest data from the fourth quarter of 2017 shows that the percentage of salary needed today is only 15.7%!
Bottom Line
If you are considering buying a home, whether it’s your first time or your fifth time, let’s get together to evaluate your ability to do so in today’s market!